HONOLULU (HawaiiNewsNow) – Hawaii has lost more residents than it has gained for 23 of the past 25 years, according to a new report from the University of Hawaii Economic Research Organization.
It’s a trend driven not just by high costs, but by an economy that has failed to keep pace with the rest of the country.
Many residents say they are feeling the strain firsthand, with rising prices and slow wage growth making it harder to get by.
“It’s super expensive,” said Honolulu resident Melissa Ton. “Groceries in Hawaii are really expensive. You factor in the cost of living compared to other places, it’s really high.”
UHERO’s report finds that while Hawaii’s high cost of living is well known, the deeper issue is weak economic performance.
Steven Bond-Smith, lead author of the report, said the state is increasingly losing working families while attracting newcomers who can afford to move.
“We’re losing hardworking Hawaii families and getting people who are coming here basically for the lifestyle,” Bond-Smith said.
Hawaii’s population peaked in 2018 and has declined nearly every year since, driven largely by residents relocating to the mainland.
Bond-Smith said those who work the hardest often face the greatest difficulty staying.
“The people that are working really hard, they’re the ones who find it toughest to live in Hawaii,” he said.
For residents, the pressure shows up in everyday expenses.
Honolulu resident Tylan Rogers said making ends meet feels nearly impossible, especially for families.
“I don’t know how people come out here and try and make ends meet,” Rogers said. “I don’t know how people do it with a family.”
Others point to the cost of basic necessities. Ren Brown said a recent grocery run for household essentials totaled $330.
“It’s not anything crazy,” Brown said. “Just random stuff.”
Economists say Hawaii’s high prices are tied to expensive land, labor and production costs, particularly for food.
Bond-Smith said those factors make affordability a long-standing challenge.
“Land is relatively expensive, and the cost of labor is relatively expensive,” Bond-Smith said. “You kind of have to pay people more because it’s so expensive to live in Hawaii.”
But Bond-Smith said lowering costs alone will not solve the problem. The report finds that even if affordability improves, slow income growth means residents would face the same pressures again unless productivity and wages rise.
UHERO adjusted state average incomes for the local cost of living, and compared Hawaii with all other states. The result: Hawaii ranked near the bottom, around the same level as Alabama, West Virginia, and Mississippi.
“People are being priced out of paradise by the cost of living, but they already were,” Bond-Smith said. “The change is the long-run trajectory. Hawaii is increasingly being left behind.”
UHERO says without stronger economic growth, the state risks continued population losses raising long-term questions about who can afford to build a future in Hawaii.
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