Eight bills aimed at improving financial literacy in Hawaii schools were introduced in the 2025 legislative session. All of them stalled.
For 28-year-old Danson Honda, a local real estate agent who bought a four-bedroom home in Pearl City at age 24, the Legislature’s inaction is more than just a missed policy opportunity—it’s a contributing factor to why so many young people feel shut out of the housing market.
“Learning about finances early changed everything for me, ” Honda said. “Most people don’t even start thinking about money until they’re working full time. By then, they’ve already made mistakes.”
But not everyone has been able to clear that mental hurdle. William Wang, 29, who has worked since he was 16, admits he wasn’t financially responsible in his younger years because he simply didn’t know better.
“I’ve always wanted to buy a home here, but it just feels impossible, ” Wang said. “Everyone around me shares the same feeling—like, there’s no way to do it.”
Wang was interested in a one-bedroom home near Kinau Street in town, but the price—over $500, 000—and the amount of remodeling it needed put it out of reach.
“It just seemed like too much, so I decided to keep renting while working day and night jobs to save more, ” Wang said. “My goal now is to own a single-family home for my family by the time I’m 35. “It feels far now, but I’m working hard and saving every dollar to make it happen.”
Despite Hawaii’s soaring home prices and limited inventory, a growing—though still small—number of Gen Z and millennial residents are finding creative ways to become homeowners. According to the 2025 Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR ), younger buyers are increasingly relying on strategies like co-buying with family, multigenerational living, and financial planning to break into the market.
Pricey market Hawaii remains one of the most expensive places in the country to buy a home.
As of early 2025, the statewide average home value in Hawaii was about $840, 000, while on Oahu, the median single-family home price topped $1.1 million. Nationally, the median home price is around $414, 000.
According to the NAR report, Gen Z buyers aged 18 to 25 accounted for just 3 % of all recent homebuyers nationwide. Younger millennials—ages 26 to 34—made up 12 % and older millennials—ages 35 to 44—represented 17 %.
Still, local real estate leaders say that’s beginning to shift—slowly.
“Homeownership is possible for younger generations, ” said Trevor Benn, president of the Honolulu Board of Realtors. “The key to homeownership is saving and investing towards a downpayment and maintaining their credit … I’m excited for our young people !”
Honda is one of them.
During the COVID-19 pandemic, he pivoted to working as an Uber Eats driver after struggling to find a job post-college. But he also began investing—putting more than 90 % of his earnings into the stock market at a time when many others were panicking. Over two years, he grew those funds into a $320, 000 down payment.
“I learned almost everything I know about money on YouTube, ” he said. “There’s good and bad info online, but the real issue is we don’t teach this in school. That’s where the mistakes start.”
Honda’s own homeownership journey illustrates the financial discipline and creativity needed to navigate Hawaii’s tough market.
When he bought his home at the age of 24, he avoided lifestyle inflation—the tendency to increase spending as income rises—by initially living in just a small one-bedroom section and renting out the rest.
His “kitchen ” was little more than a wet bar, but this setup significantly lowered his living expenses, essentially covering the mortgage and allowing him to save enough to begin renovating and eventually move into the larger living area.
“It showed me that no matter where you are financially, it’s important to keep applying good financial habits even after achieving a major milestone like homeownership, ” Honda said.
Renovating his home has become a learning process in itself, and to help in saving money, Honda also plans to do much of the work himself, from painting to flooring.
Beyond his current renovation, Honda is aware of various real estate strategies people use to build wealth or improve affordability. For example, the Section 121 capital gains exclusion lets homeowners sell their primary residence after living in it two of the past five years and exclude a significant portion of gains from taxes.
This makes buying, renovating and reselling a possible path for some buyers.
Others pursue the BRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—or house flipping, which can revitalize neglected properties but also raises concerns about affordability and neighborhood change. Honda stresses the importance of balancing financial goals with the impact on the community.
“It’s important to strike a balance of making financially sound decisions but also consider the impact on the community and the values we want our neighborhoods to reflect, ” he said.
Financial ignorance Honda believes a lack of early financial literacy is a major barrier for young people.
“So many don’t plan ahead because they think homeownership is impossible. They already gave up before they even tried, ” he said. “But if you start learning early—even before you’re making money—you can avoid mistakes and prepare.”
Benn agrees that education matters.
“Finding a home that checks every box is rare, especially in your first home purchase, ” he said. “But there are significant benefits to getting on the housing ladder by buying a starter home—building equity and generational wealth while contributing to stronger communities.
The HOPE Homebuyer Education Program—a joint effort between the Honolulu Board of Realtors and the Hawaii HomeOwnership Center—shows promising trends. As of this year, 30 % of participants were between 18 and 30 years old, and 33 % were in their 30s.
“Some (younger buyers ) team up with family or friends in multigenerational housing, ” Benn said. “Some are using remote work flexibility to explore more affordable neighborhoods, and some purchase a home with a rental element to it, like ADUs (accessory dwelling units ), to support the mortgage payments.”
Creative strategies Junior Achievement of Hawaii found that Gen Z buyers are also leaning into unconventional strategies : subletting rooms, leveraging family wealth, relocating and using digital platforms to manage side income.
Honda emphasizes that having a plan matters more than how much money you start with.
“It’s not about having a six-figure salary, ” he said. “It’s about learning how money works, adapting when things change, and having the mindset that it’s still possible.”
As of April, just 0.5 % of people under 25 could afford a median-priced home in Honolulu, where the median homeowner age is now 61. A chronic supply shortage—worsened by slow development and a high share of vacant vacation homes—compounds the challenge.
According to the state Department of Business, Economic Development and Tourism’s housing forecast, Hawaii needs more than 41, 000 new homes over the next decade to meet demand.
The condo window One bright spot, according to Benn, is the condominium market. Inventory is up and buyers have more negotiating power.
According to NAR data, 71 % of younger millennials who bought homes were first-timers. A quarter moved directly from a family member’s home. Gen Z buyers are also more likely to purchase as single women or unmarried couples, highlighting new demographic shifts.
Still, obstacles persist. Saving for a down payment remains the biggest hurdle for 33 % of younger millennials—compared to just 1 % of baby boomers. Many still rely on gifts or loans from family to get across the finish line.
What needs to change While Benn encourages young buyers to prepare and talk to a lender early, he also supports bigger policy reforms—including better incentives for local ownership, capital gains tax reform and streamlined zoning to encourage housing development.
“Policy absolutely plays a role, but it needs to be thoughtful and based on real data, ” Benn said, suggesting policymakers collaborate with housing experts to come up with balanced solutions. “It’s not just about adding more regulations or taxes. It’s about creating policies that free up inventory, create new inventory, encourage local ownership and make it easier for first-time buyers to get into the market.”
Honda echoes that, saying the system needs to support both sides of the equation : building more housing and building up local knowledge and confidence.
“We need more success stories out there, ” he said. “If all people hear is how impossible it is, they’ll never even try. But if we show them it’s hard, not impossible, that changes everything.”
For young buyers trying to stay in Hawaii, the message from both Benn and Honda is clear : Start early, stay informed and don’t let fear or sticker shock stop you.
“It’s not about being rich, ” Honda said. “It’s about being ready.”
