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Why Is Hawaii So Expensive?

Hawaii citizens have the most stunning tropical places on the planet to live. In contrast, they have to pay a high fee to do so. So, why is Hawaii so expensive?

How Much Does It Cost To Live In A Tropical Paradise?

Hawaii-Living-Cost
Hawaii-Living-Cost

The living cost in Hawaii is the highest among states in the US. The Tax Foundation showed that the actual value of $100 in Hawaii is less than $85. It means that the citizens here have less value for each dollar they spend.

During the past 5 years, people who left Hawaii were much more than those who moved in. It is all because of the pricey living standard here.

However, what causes the living cost in Hawaii so high? People suppose that it’s due to the 3 major reasons below.

Elevated Taxes – Hawaii So Expensive

Hawaii-Taxes
Hawaii-Taxes

The state budget per capita in Hawaii is $12,896. It ranks as the third highest in the entire nation.

In fact, Hawaii citizens pay the greatest per-capita state tax income in the nation. Their money is allocated to liabilities and undue government spending. 

Unaffordable Housing

Hawaii-Housing
Hawaii-Housing

When it comes to housing, Hawaii is also the most pricey in the country. It costs you more than $1 million to buy just a home for a single family. As a result, many citizens have to share rooms with their friends or live with multiple generations of family members. But the most common choice, as we mentioned above, is that people have to leave the state for good.

One of the main causes that lead to this fact is the use of land and zoning laws. These regulations are enacted by the state and counties.

According to the state laws, not all urban areas are available for housing. For instance, in inner-city lands, shopping malls are limited to business zones, and homes are common in the residential zones. Within those regions, there can be different restrictions on what kinds of shops or houses can be constructed.

Basically, the Hawaii state government harshly limits the supply of land open for housing. This is the primary cause of the housing expense being greatly higher than the nationwide figure of all the time.

Shipping Prices – Hawaii So Expensive

Hawaii-Shipping
Hawaii-Shipping

To compare, the shipping fees from the West Coast to Hawaii can command up to 300% higher than shipping identical merchandise cargo to Australia.

It is all due to the 1920 Merchant Marine Act. Its other name is the Jones Act. According to this Act, all the merchandises sent between U.S. harbors have to be delivered to U.S. ships. These ships are genuinely from the U.S. and in the control of American crews.

And the fact is that ships made in U.S. shipyards generally price 3 – 5 times more than available ships on the marine market. This rises capital expenses and discourages competition among Jones Act transports.

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Maris Lopez
Maris Lopezhttp:////my-lifestyle.co
Hey there! I'm Maris, an American girl who is passionate about adventure, the outdoors and all things travel!
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