I’m not saying this is you, but some Kauai condominium buyers and sellers are living on different planets. Actually, scratch that. Different galaxies. Each side has a different view of what should be happening in this market instead of what is actually happening. And our vacation rental condominiums are the main reason for that disconnect.
Most of Kauai’s condominium inventory is vacation rentals, which is a luxury purchase. You need a home, but you don’t need a second home, so this segment doesn’t sell the way residential real estate does. But the residential market is the one most buyers and sellers already understand, which is where a lot of the confusion comes from.
It has been a challenging year, and honestly, I wasn’t sure what the condo numbers were going to look like. This market has had nothing but headwinds. But the data for the first eight months of 2026, compared to the same period in 2025, has some real bright spots, and I’m happy to report it.
Number of Sales: A Rough Number With Good News Underneath
Island-wide, condominium sales are down from 193 in 2025 to 152 this year, a 21.24% decrease. Not a great number to start with, but stick with me.
Despite everything thrown at this segment, the South Shore is dead even with last year. That is real resilience in the part of the island most dominated by vacation rentals. Lihue performed much like our housing market, which makes sense since most of its inventory is residential condominiums. As the residential market gets stronger, condominium sales tend to follow. That is a typical pattern, and it is exactly what we are seeing play out right now.
Median Prices: The Real Bright Spot
This is where the encouraging news is.
Island-wide: Condominium median prices are down only 2.57%, at $852,500 compared to $875,000 last year. Given everything this market has faced, holding nearly flat is a good sign.
South Shore: The land of vacation rental condos held its median price exactly flat, at $1,050,000 for both 2025 and 2026. Combined with sales being dead even, this is great news for this segment.
North Shore: Slightly down 5.18%, at $1,007,499 compared to $1,052,500 last year.
Lihue: Up 18.57%, at $622,500 compared to $525,000 last year, coming back strong on price even with fewer sales.
What This Means
The condo market has been under pressure, but the price data suggests it is holding steadier than the sales numbers alone would suggest. The South Shore’s flat sales and flat median price stand out as a sign of real stability in the vacation rental segment. And as the residential market strengthens, expect condominium sales to keep following that same pattern.
I will be back next month with an update on where this trend goes. If you have questions about buying or selling a Kauai condo in this market, I would be happy to talk it through.
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Aloha!
Lynda Gill RS Lic. 63088
Hawai’i Life Real Estate Brokers 808.346.0056
LyndaGill@HawaiiLife.com
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