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Kau Real Estate: Ocean View, Naalehu and Pahala on the Big Island (2026)

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

Black sand shoreline at Punaluu on the Kau coast
The Kau coast at Punaluu, 2020. Photo: Farragutful, CC BY-SA 4.0, via Wikimedia Commons.

Quick answer (updated November 13, 2026): Kau, the Big Island's southern district, has the island's lowest prices. October 2026 median prices (Title Guaranty Hawaii market report) show 13 Kau house sales at a $235,000 median and 7 land sales at a $12,000 median, and Hawaiian Ocean View Estates was among the island's most active neighborhoods with 9 sales. It is remote, with long drives to services, and many properties rely on catchment water and sit on Mauna Loa's flanks, so check lava zone, insurance and access carefully.

Kau stretches from the edge of Hawaii Volcanoes National Park around the south end of the island to the Kona border, through the small towns of Pahala and Naalehu and the large subdivision of Ocean View. It includes Ka Lae, the southernmost point in the United States, and black sand beaches at Punaluu.

People come for space, quiet and low prices. Here is what comes with them.

Areas and housing

Ocean View, including Hawaiian Ocean View Estates and Hawaiian Ranchos, is a huge subdivision of mostly one-acre and larger lots on lava, many still vacant. Naalehu and Pahala are former sugar plantation towns with older homes. Discovery Harbour, near Naalehu, has larger lots and ocean views.

Kau house median, Oct 2026$235,000 (13 sales)
Kau land median, Oct 2026$12,000 (7 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.

Lava rock and black sand along the Kau coastline
The Kau coastline near Punaluu, December 2008. Photo: Diego Delso, CC BY-SA 3.0, via Wikimedia Commons.

Water, power and roads

Much of Ocean View relies on rain catchment and some homes are off-grid with solar power. Roads in large subdivisions may be private and rough. Before you buy a lot, confirm legal access, power availability, and what it would cost to build. Many rural homes on both islands still use cesspools. State law requires every cesspool in Hawaii to be upgraded, converted or connected to sewer by 2050, so a buyer should know what system a property has and what replacing it would involve.

Lava zones and insurance

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.

Much of Kau sits on Mauna Loa's Southwest Rift Zone flanks; Mauna Loa last erupted in 2022. Check the zone for each parcel and confirm insurance and financing in writing early.

Highway 11 through open country near Pahala
Highway 11 near Pahala, April 2010. Photo: Ken Lund from Reno, Nevada, USA, CC BY-SA 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. Most of Kau is residential or agricultural, where new unhosted rentals are not allowed without a nonconforming use certificate.

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.

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, Ocean View is about 75 to 90 minutes. From Hilo International Airport, Pahala is about 70 to 80 minutes and Naalehu 90 to 100 minutes. Groceries, hospitals and other services can be a long drive away. 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 $250,000 of taxable value would be about $1,438 a year in the Homeowner class before the home exemption, and about $2,775 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.

Kau real estate FAQ

How much does a house cost in Kau?

The Title Guaranty Hawaii market report shows 13 Kau single-family sales in October 2026 at a median of $235,000, the lowest of any Big Island district.

Why is land in Ocean View so cheap?

Ocean View lots are remote, often lack county water and power, sit on lava with high building costs, and are in higher lava hazard zones. Kau's October 2026 land median was $12,000 on 7 sales.

Can I build on an Ocean View lot?

Usually, with permits, but check road access, power, water (often catchment), and the cost of building on lava rock before you buy.

How do I find the lava zone for a property?

Look up the parcel on the U.S. Geological Survey lava-flow hazard zone map (zones 1 to 9, with Zone 1 the highest hazard). The map dates from 1992 and is being updated, and your lender and insurer may have their own rules for Zones 1 and 2.

Can I insure a home in Kau?

Sometimes privately; otherwise through the Hawaii Property Insurance Association, the market of last resort, with limits of $50,000 to $450,000. Get quotes before your contingencies end.

What are property taxes on a Kau home?

Using Hawaii County's July 2026 to June 2027 rates, $250,000 of taxable value would be about $1,438 a year in the Homeowner class ($5.75 per $1,000) before the home exemption, or about $2,775 a year in the Residential class used for most second homes and rentals.

How far is Ocean View from Kona?

Our estimate is about 75 to 90 minutes from Kona International Airport.

Can Tony help me buy in Kau?

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 Kau 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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