Maui real estate is seeing a surge in new investment as the economy improves.
The boom has driven up the cost of real estate in the region.
The latest data from the Kauai County Office of Economic Development show that average monthly rent in Kauai increased 2.7% in February.
The median monthly rent was $1,854 in February, up 2.6%.
Kauai has experienced a strong boom in recent years, with the population of 2.5 million more than doubling to 9.4 million since 2010.
That boom has led to a huge surge in property values in Kaua’i, with real estate companies like Apartment Towers and West Coast Properties in particular being hit hard.
Apartment Tower has recorded a net loss of $2.3 million for the past year, while West Coast, which owns and operates the majority of the property, has recorded net losses of $4.5million.
The impact of the boom has also hit the economy.
Sales and prices in Kaui increased by 5.2% in March, according to the Kaua`i Real Estate Association.
It’s not only a new wave of buyers that are coming into the market.
The average number of transactions per month increased by nearly 50% between December and February, according the Kauae County Office.
Kareena Hickey, a real estate agent at Apartment & Retail Group in Waikiki, says that in the past several years, many of the buyers are from out of town.
“We’ve seen the boom, so it makes it easier for new buyers to come in and buy properties,” she said.
“But in Kauae, we are seeing a little bit more of a drop-off in activity and a decrease in sales activity compared to a year ago,” Hickey added.
Hickey says that while Kauai has seen some growth in the amount of new buyers in recent months, it is still in the process of leveling off.
She says that, as the market is slowly turning around, some people are beginning to see a benefit in the boom.
I think people are starting to appreciate that this is a boom that is sustainable,” she added.