The last major state in the Pacific when heading West, the islands of Hawaii have often been dubbed paradise by many. Providing a well-known naval base at Pearl Harbor, the state of Hawaii is also home to the sets of numerous TV shows over the years, from the original Hawaii Five-0 and Magnum P.I. to their modern reboots. Made up of several major islands and many smaller ones, Hawaii is home to local residents, retirees, government workers, a large military presence, and transplants from across Asia and the U.S. mainland. The islands remain a major tourism destination for travelers from Japan and beyond. Hawaii's economy is driven largely by tourism, military and government spending, real estate, and agricultural exports.

Hawaii has a population of roughly 1.4 million, and with a total area of about 10,900 square miles it is a small state in every sense. It is, however, one of the more densely populated states in the union. In recent years, Hawaii's economy has produced well over $100 billion in annual GDP, with government and military spending, real estate, and tourism among the largest contributors.

Top Destinations in HI

Home values in Hawaii have risen sharply over the past decade and remain among the highest in the nation. As of 2025, the typical home value in the state is roughly $840,000 according to Zillow, though prices vary widely by island and neighborhood. Some of the most expensive markets are the resort communities of Maui and the Big Island, along with sought-after areas of Oahu, where median list prices can run well over $1 million. More affordable options tend to be found in parts of Hawaii Island and West Oahu.

Hawaii is a small state, and so it follows that there are few large cities. That said, we've reviewed three of the largest and provided some information that may be of interest to prospective home buyers.

Honolulu

Population: approximately 351,000 (2020 Census)

Honolulu is both the state capital and by far the largest city in HI, several times larger than the next biggest population centers. Honolulu is a very popular tourist destination, and indeed tourism is a driving force in the local economy. The city is richly multicultural, with a large Asian-American population that includes significant Japanese, Filipino, Chinese, and Korean communities. Honolulu is filled with beautiful locales and a rich culture.

Hilo

Population: approximately 44,000 (2020 Census)

Though it is often called a city, Hilo has no municipal government and is not actually incorporated. Hilo is a major destination on the Big Island and is home to the University of Hawaii at Hilo. The community offers a number of interesting museums and cultural sites.

Kailua

Population: approximately 38,000 (2020 Census)

Located about 12 miles from Honolulu on the windward side of Oahu, Kailua is one of the largest communities in Hawaii. It is also home to Kailua Beach, one of the most popular beaches in the state.

Financial Institutions

To be frank, banking in Hawaii is structured differently from much of the rest of the United States. A small number of locally based banks control the majority of the market, and the largest national banks have historically maintained little to no retail branch presence in the islands. As a result, residents often rely on local banks and credit unions for everyday banking and mortgage needs.

Some of the largest banks operating in the state today include:

  • Bank of Hawaii
  • First Hawaiian Bank
  • American Savings Bank
  • Central Pacific Bank
  • Hawaii National Bank
  • Finance Factors

Alternatively, one could turn to a credit union for banking. There are multiple quality options to consider. Two of the largest credit unions in Hawaii are Hawaii State Federal Credit Union and HawaiiUSA Federal Credit Union. Other credit unions of note include Aloha Pacific, University of Hawaii, Hickam, and Hawaiian Financial.

Home Buying in Hawaii

For those considering a jump to a new home in one of the Hawaii islands, working with a local real estate office is a good idea, as many neighborhoods on the islands have restrictions and unique land-tenure arrangements. First-time buyers may also want to look into the state's Hawaii Housing Finance and Development Corporation (HHFDC), which administers programs such as the Hale Kamaʻāina Mortgage Program to help eligible residents with financing and down payment assistance.

Additionally, using RateZip.com can help a buyer compare some of the best mortgage rates available for Hawaiian properties. Much like in banking, there are fewer options for home buyers to consider, but using the RateZip search engine consumers can quickly and easily compare rates, fees, and terms from national and local lenders serving the islands. To compare fixed rate home loans, adjustable rate mortgages (ARMs), FHA loans and more, and to see current rates, simply follow this link to our page about mortgage rates.