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Kailua-Kona Real Estate: Condos, Homes and Rules in North Kona (2026)

By Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Updated November 13, 2026.

Kailua Bay and the seawall along Alii Drive in Kailua-Kona
Kailua Bay in Kailua-Kona, November 2014. Photo: Robert Linsdell from St. Andrews, Canada, CC BY 2.0, via Wikimedia Commons.

Quick answer (updated November 13, 2026): Kailua-Kona is the hub of the Big Island's west side and its busiest condo market. October 2026 median prices (Title Guaranty Hawaii market report) show 32 North Kona house sales at a $1.0 million median, 24 condo sales at a $550,000 median and 3 land sales at $700,000. Before you buy, check whether the property is in a zone that allows vacation rentals, its lava zone on Hualalai or Mauna Loa, and the condo association's budget and insurance.

Kailua-Kona spreads along Alii Drive from the historic town on Kailua Bay south to Keauhou, and up the slopes of Hualalai toward the artists' village of Holualoa. It is sunny and dry near the coast, cooler and greener upslope, and has the island's main west-side airport, shopping and harbor.

The North Kona district also includes newer subdivisions above town and the high-end resort communities north of the airport. Here is how it breaks down.

Condos, homes and neighborhoods

Condos line Alii Drive and the hills above it, from older oceanfront buildings to golf-course projects in Keauhou. Single-family neighborhoods climb the slope above town, where it is cooler and views open up. Holualoa and the upland areas offer larger lots and coffee farms. Alii Villas, Alii Park Place and Banyan Tree were among the island's condos with a sale in October.

North Kona house median, Oct 2026$1.0 million (32 sales)
North Kona condo median, Oct 2026$550,000 (24 sales)
North Kona land median, Oct 2026$700,000 (3 sales)
Island house median, Oct 2026$514,500

These are October 2026 median prices from the Title Guaranty Hawaii market report for Hawaii Island (effective November 2, 2026). Title Guaranty is a Hawaii title and escrow company, and its free monthly report compiles the island's MLS sales statistics by tax district. One month is a small sample, so treat a district median as a starting point and look at actual comparable sales.

Condos and homes on the hillside above Kailua Bay
Homes and condos above Kailua Bay, November 2014. Photo: Robert Linsdell from St. Andrews, Canada, CC BY 2.0, via Wikimedia Commons.

Vacation rental rules

Hawaii County's 2018 short-term vacation rental law (Ordinance 2018-114) allows new unhosted rentals only in certain districts: the V, CG and CV zones, residential and commercial zones inside the General Plan's resort areas, and RM-zoned condominiums. Outside those areas, only rentals that were operating before April 1, 2019 and hold an annually renewed nonconforming use certificate can continue. Since September 1, 2026 the county also requires every transient vacation rental, hosted or not, to register through its online portal under Ordinance 25-50, with a grace period through the end of 2026. Condo association rules can be stricter than the county's. In Kailua-Kona, many condos along Alii Drive are in resort or multifamily zones where rentals may be allowed, while most single-family neighborhoods are not. Check the specific parcel and the association rules.

Nightly rental income is taxed separately from property tax: the state transient accommodations tax is 11% as of January 1, 2026, each county adds a 3% county TAT, and general excise tax is 4.5% in both Maui County and Hawaii County, so plan on about 18.5% of gross rent before income tax.

Lava zones and hazards

The U.S. Geological Survey divides Hawaii Island into lava-flow hazard zones from 1 (highest) to 9 (lowest). Zone 1 covers the summits and rift zones of Kilauea and Mauna Loa; Zone 2 is the land next to and downslope of those rift zones. The zones describe long-term probability, not a forecast, and USGS is updating the map, which still dates from 1992. Zone matters for insurance and financing. When private insurers decline a home, the Hawaii Property Insurance Association is the market of last resort: it requires at least two declinations, offers dwelling limits from $50,000 to $450,000, and generally costs more for less coverage. Ask your lender and an insurance agent about a specific address before you are in contract.

Kona sits on the slopes of Hualalai, which the USGS ranks third in long-term lava threat after Kilauea and Mauna Loa; Hualalai last erupted in 1801. Coastal properties also need a tsunami and sea-level-rise check, and vog from Kilauea often drifts to the Kona side.

Land tenure

Most Hawaii Island homes and lots sell fee simple. Leasehold still appears in some Kona-side condos and older subdivisions, and Department of Hawaiian Home Lands homestead leases have their own eligibility rules. On rural lots, I look closely at legal access, road maintenance agreements on private roads, and whether utilities actually reach the parcel.

Getting around

From Kona International Airport, Kailua-Kona is about 15 to 20 minutes, Keauhou and Holualoa about 25 to 30 minutes. Queen Kaahumanu Highway and Mamalahoa Highway are the main routes, and the commute between them can be slow at peak hours. These are our own estimates for light traffic, not official figures.

Property taxes

Hawaii County sets rates by class each May. A full-time owner who files for the home exemption is taxed in the Homeowner class, and the exemption also lowers the taxable value. Second homes and vacation rentals are generally taxed in the Residential class, which now has three tiers.

Source: Hawaii County Council Resolution 574-26 notice; tier thresholds from Title Guaranty's 2026-2027 rate sheet.
Hawaii County class (FY July 1, 2026 - June 30, 2027) Rate per $1,000 of net taxable value
Homeowner $5.75
Residential (non-homeowner) $11.10 below $2M; $14.50 from $2M to $4M; $17.00 above $4M
Long-term rental $7.75
Apartment $11.70
Hotel and resort / Conservation $11.55
Agricultural or native forests $9.35
Affordable rental housing $5.75

Illustration only: a home with $900,000 of taxable value would be about $5,175 a year in the Homeowner class before the home exemption, and about $9,990 a year in the Residential class. The exemption amount depends on the owner, so I have the county's numbers checked for the specific property.

Kailua-Kona real estate FAQ

How much does a house cost in Kona?

The Title Guaranty Hawaii market report shows 32 North Kona single-family sales in October 2026 at a median of $1.0 million, about twice the island median of $514,500.

How much is a condo in Kailua-Kona?

North Kona had 24 condo sales in October 2026 at a median of $550,000. Oceanfront and resort condos sell for much more than older inland units.

Can I rent my Kona condo to vacationers?

Only if the property is in a zone where Hawaii County allows short-term vacation rentals or holds a nonconforming use certificate, and the association allows it. Since September 1, 2026, all transient vacation rentals must also register with the county.

What lava zone is Kailua-Kona in?

Kona is on the slopes of Hualalai, with Mauna Loa to the south. Look up the exact parcel on the USGS lava-flow hazard zone map; the zone affects insurance and financing.

What are property taxes on a Kona home?

Using Hawaii County's July 2026 to June 2027 rates, $900,000 of taxable value would be about $5,175 a year in the Homeowner class ($5.75 per $1,000) before the home exemption, or about $9,990 a year in the Residential class used for most second homes and rentals.

Is there vog in Kona?

Often. Volcanic smog from Kilauea tends to drift around to the Kona side, depending on wind and eruption activity.

How far is Kailua-Kona from the airport?

Our estimate is about 15 to 20 minutes from Kona International Airport in light traffic.

Can Tony help me buy in Kailua-Kona?

Yes. My team is based on Oahu, and for Hawaii Island purchases we help buyers through eXp Realty's statewide network, including referrals to agents who work Kailua-Kona every day. Call or text (808) 201-3577.

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Sources

Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Phone (808) 201-3577. The Kawaguchi Group is based on Oahu; for neighbor-island purchases we work with buyers through eXp Realty's statewide network, including referrals to agents who work those areas every day. This page is general information, not legal, tax, insurance or financial advice. Market statistics are deemed reliable but not guaranteed and can be revised. Drive times are our own estimates for light traffic and will vary. Photos are of the general area and are not listings.

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