Blog > Best Areas on Hawaii Island for Second-Home Buyers
Kailua-Kona and the Kohala Coast account for the majority of second-home and resort-property transactions on Hawaiʻi Island. The Kona and Kohala corridor, running from Keauhou in the south through Kailua-Kona town and north along the Queen Kaʻahumanu Highway to Mauna Kea Resort, gives buyers access to a range of property types and price points that no other part of the island can match. This guide breaks down each area so you can match your ownership goals to the right community before you start writing offers.
Why Second-Home Buyers Keep Returning to the Kona-Kohala Corridor
Year-round usability, geographic variety, and direct mainland air access define the Kona-Kohala Corridor for buyers who will use a property six to ten weeks a year. The west side of Hawaiʻi Island sits in the rain shadow of Mauna Loa and Hualālai, producing what NOAA 30-year climate normals record as a mean annual temperature of 78.2°F and average annual precipitation of 9.87 inches at the Kailua-Kona Ke-Ahole station. In practical terms, outdoor living on a lanai, at a pool, or on the water is not confined to a peak season.
The corridor also offers meaningful variety within roughly a 45-minute drive. Buyers who want walkable town energy with ocean access, those who prefer a resort-anchored setting with golf and hotel amenities, and those seeking a more private, residential shoreline community can all find what they are looking for here without committing to a fundamentally different island.
Ellison Onizuka Kona International Airport (KOA), located approximately seven miles north of Kailua-Kona, offers direct service from multiple U.S. mainland gateways and select Canadian destinations, with a route network that makes the logistics of part-time ownership considerably more manageable than on islands that require an inter-island connection.
Kailua-Kona: Commercial Hub of West Hawaiʻi
Kailua-Kona is the strongest geographic focus for second-home buyers on the island. It is the commercial hub of West Hawaiʻi, with major grocery chains, big-box retailers, and local supermarkets serving daily needs, alongside Kona Community Hospital and a restaurant scene that has expanded considerably in recent years. For buyers who value having a functioning daily-life infrastructure, not just resort amenities, Kailua-Kona delivers both.
The property market spans a wide range. Along and near Aliʻi Drive, the five-mile coastal road running from Kailua town south toward Keauhou, buyers find a mix of oceanfront condominiums, mid-rise buildings, and a small number of detached homes. This is the most urban Kona address and the most in-demand for buyers who want to walk to coffee, the pier, and waterfront dining.
Based on aggregated MLS listing data for the six months ending June 2026, the Kailua-Kona condo market was carrying approximately 6.9 months of supply, which is buyer-favorable territory, with median days on market for condos standing at 51 days over that period. The single-family market had reached approximately 5.7 months of supply over the same period, placing it near the upper boundary of a balanced market. The year-to-date median single-family sold price as of mid-2026 stood at approximately $1.25 million, down 3.7% from the same period in 2025. Supply has increased but remains roughly 25% below June 2019 levels, which has kept the pricing decline measured rather than sharp.
For second-home buyers, the implication is straightforward: Kailua-Kona is a market where well-prepared buyers have more negotiating room than at any point since 2019, but structural supply constraints mean a broad price collapse is unlikely.
The Kailua-Kona real estate page covers current inventory across property types, and the Kailua-Kona neighborhood page provides additional context on the geographic footprint of the area.
Keauhou: Resort Infrastructure within Kailua-Kona
Keauhou is a community within Kailua-Kona, approximately ten minutes south of downtown, and it functions as a distinct micro-market within the broader Kona area. Anchored by the Outrigger Kona Resort and the Kona Country Club, Keauhou was designed as a master-planned resort community and retains that character: golf courses, protected ocean coves, a weekly farmers market at Keauhou Shopping Center, and Kahaluʻu Beach Park, one of the most consistently calm snorkeling spots on this side of the island.
The housing stock is primarily 1970s to 1990s-era condominiums and single-family homes on winding streets above the golf courses. Because these buildings are older and the inventory is deeper than on Aliʻi Drive, entry points here tend to be more accessible for buyers who want resort infrastructure without paying peak oceanfront prices. The Keauhou condo market includes communities structured for resort use, many of which carry short-term vacation rental (STVR) permits by right, which matters for buyers who plan to generate offset income during weeks they are not on island. As with any STVR-related purchase in Hawaiʻi County, zoning classification, county registration status, and individual association rules must be verified independently before any income assumptions are built into the purchase analysis.
Properties within Keauhou worth exploring include Beach Villas at Kahaluʻu, Keauhou Kona Surf and Racquet Club, Keauhou Punahele, and Keauhou Resort Condos. Buyers comparing communities at different price tiers across the broader Kona and Kohala Coast can also find an overview at Compare Luxury Communities - Kona/Kohala Coast.
Three Kohala Coast Resort Communities - Waikoloa, Mauna Lani, and Mauna Kea
North of Kailua-Kona, the landscape shifts. The vegetation thins, the lava fields widen, and three named resort communities appear along the coast. Each has a different structure and a different buyer profile. Buyers frequently search for these communities by name, and that specificity is justified: the ownership experience inside each one differs in ways that price alone does not capture.
Waikoloa Beach Resort
Waikoloa Beach Resort is the most visitor-facing of the three. It is home to major hotel brands, an extensive shopping and dining complex, and a 27-hole golf facility. The resort's condo communities sit within a county-designated resort node, meaning that short-term vacation rental use is generally permitted at the county level, though each association's CC&Rs and registration requirements must still be confirmed parcel by parcel.
For buyers who want resort amenities immediately accessible and who plan to place a property into a short-term rental program, Waikoloa Beach Resort is typically the most straightforward entry point on the Kohala Coast. Property types range from studio and one-bedroom resort condominiums at more accessible price points to multi-bedroom villas. The trade-off relative to the other two resort communities is that the atmosphere is more hotel-and-visitor-oriented than residential. Buyers interested in golf course residences across the west side can find a broader overview at Golf Course Residences (Big Island Hawaii).
Mauna Lani Resort
Mauna Lani Resort is a 3,200-acre master-planned community that spans two championship golf courses, two major hotel flags (the Auberge Resort and the Fairmont Orchid), a beach club for owners and residents, a retail center, and 17 residential communities governed by the Mauna Lani Resort Association, with the broader resort plan encompassing 21 planned residential sub-developments. That scale gives it a middle-ground quality on the Kohala Coast: more resort-integrated than Puako, more residential in character than Waikoloa, and more open in structure than Mauna Kea.
Property types within Mauna Lani run from entry-level golf-view condominiums to oceanfront and ocean-adjacent custom estates. The private owners' beach club is a meaningful amenity for second-home buyers who prioritize ocean access as part of their ownership experience. Several sub-communities within the resort carry transferable STVR permits, which adds an income-offset option for buyers who choose to activate it. The Mauna Lani Resort real estate page provides a current look at what is available.
Mauna Kea Resort
Mauna Kea Resort operates with a more private, club-oriented structure than either Waikoloa or Mauna Lani. The resort's residential options range from studio-to-four-bedroom condominiums to custom estate homesites, with the ownership experience closely tied to hotel, golf, beach, tennis, dining, and spa access.
The 2025 sales activity at Mauna Kea Resort illustrates what has been happening at the upper end of the Kohala Coast market. Based on aggregated MLS listing data for the twelve months ending December 2025, the resort recorded 30 closed sales totaling approximately $159 million in volume, up 11% from the $143 million recorded in 2024.
That total was elevated by four sales above $9 million, including record-setting closings in Fairways South, the Villas, and Kaunaʻoa. The data describes a market where transaction counts have moderated from the 2021–2022 peak, but buyers who are active are concentrated on higher-quality properties, and pricing at the top end has remained firm. For broader context on the upper price tier across the island, the Big Island luxury market report provides additional perspective.
For buyers considering Mauna Kea, the supply picture is important: very few listings come to market in any given quarter, and mispriced properties sit longer than they did during the surge years. The Mauna Kea Resort real estate page provides current inventory.
Puako
Puako is structured differently from the three resort communities. It is a low-density, single-family shoreline community along Puako Beach Drive, a roughly three-mile road that runs parallel to the ocean. There are no hotels, no golf courses within the community, and no resort management structure. What Puako has is direct ocean access, an intact coral reef system well-regarded for snorkeling and diving, and a genuine residential character that distinguishes it from every other area on this coast.
For second-home buyers who want a quiet oceanfront or near-oceanfront property with less resort structure, Puako is the most distinct option in the corridor. The inventory at any given time is limited, the price range runs from older beach cottages to high-end oceanfront estates, and the land constrained by the shoreline and adjacent properties means that new supply is structurally limited.
Hawaiʻi County Property Taxes - What Second-Home Buyers Need to Understand
Property tax structure matters for any second-home purchase on Hawaiʻi Island, and FY2026-27 brought meaningful changes to the Hawaiʻi County rate schedule that buyers should build into their cost modeling.
Per Resolution 574-26, passed by the Hawaiʻi County Council on May 21, 2026, and as reported by Big Island Now, the residential tax rates for non-owner-occupied properties, which includes second homes and most investment properties, are structured in three progressive tiers for the FY2026-27 tax year (effective July 1, 2026, through June 30, 2027). Each rate applies only to the portion of assessed value within that bracket, not to the total assessed value:
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Tier One: Properties with an assessed value up to $2 million: $11.10 per $1,000 of assessed value
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Tier Two: The portion of assessed value between $2 million and $4 million: $15.00 per $1,000
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Tier Three: The portion of assessed value above $4 million: $17.00 per $1,000 (new tier added in FY2026-27)
The Hotel/Resort classification, which applies to properties used for short-term transient rental, carries a separate rate of $11.55 per $1,000.
Primary residences that qualify for the county homeowner exemption are taxed at $5.75 per $1,000, a significantly lower rate. A property purchased as a second home or vacation property, used part-time by the owner and not established as a primary residence, does not qualify for the homeowner exemption.
For context on carrying costs, a non-owner-occupied property assessed at $1.5 million would carry an estimated annual tax bill of approximately $16,650 under the FY2026-27 Tier One rate. A property assessed at $3 million spans both tiers: the first $2 million is taxed at $11.10 per $1,000 ($22,200), and the remaining $1 million at the Tier Two rate of $15.00 per $1,000 ($15,000), for an estimated annual bill of approximately $37,200. Buyers considering properties assessed above $4 million should incorporate the additional Tier Three calculation into their carrying cost analysis, as the portion above $4 million is taxed at $17.00 per $1,000 on top of the amounts accrued in Tiers One and Two.
Hawaiʻi County property tax rates are set by the County Council and adjusted annually. Buyers should confirm current classifications and rates directly with the County of Hawaiʻi Real Property Tax Division and consult a Hawaiʻi-licensed CPA or real estate attorney for guidance specific to their situation.
How to Match an Area to Your Goals
Second-home buyers on the Kona-Kohala Coast generally fall into one of a few clear ownership profiles. Matching the area to the profile prevents the most common mismatch, which is buying for the amenities without accounting for the daily rhythm.
| Buyer Profile | Best-Fit Area | Core Reason |
|---|---|---|
| Lock-and-leave condo buyers seeking STVR income offset | Keauhou or Waikoloa Beach Resort | Condo inventory depth, resort zoning, established short-term rental infrastructure |
| Full-service resort address with dedicated beach club | Mauna Lani Resort | Hotel-quality amenities accessible to owners, range of housing product within one master plan |
| Highest privacy and prestige, smallest inventory pool | Mauna Kea Resort | Club-oriented structure, concentrated buyer pool focused on best-in-class properties |
| Residential shoreline community without resort structure | Puako | Direct ocean and reef access, quiet residential character, structurally limited supply |
| Walkable town life with maximum lifestyle flexibility | Kailua-Kona (Aliʻi Drive area) | Ocean access, dining, and town services converge in a walkable footprint |
The Big Island homes for sale search covers current inventory across the entire west-side market, and the West Side Real Estate page provides additional search context for buyers working through the full range of Kona and Kohala Coast options.
Frequently Asked Questions
Which area on Hawaiʻi Island is best for a second home with short-term rental potential?
Waikoloa Beach Resort and Keauhou are generally the most straightforward entry points for second-home buyers who want short-term vacation rental (STVR) income potential. Both sit within or adjacent to county-designated resort zones where STVR use is more broadly permitted at the county level. That said, each property must be evaluated individually: county zoning classification, county registration requirements, and the specific association's CC&Rs all govern whether and how a given unit can operate as a vacation rental. Mauna Lani Resort also has sub-communities with transferable STVR permits. Always verify parcel-level zoning and association rules before making income assumptions.
How do property taxes work for a second home on Hawaiʻi Island?
Non-owner-occupied residential properties in Hawaiʻi County, including second homes, are taxed under a progressive three-tier structure set by the County of Hawaiʻi for the FY2026-27 tax year (effective July 1, 2026, through June 30, 2027). Each rate applies only to the portion of assessed value within that bracket: $11.10 per $1,000 for the first $2 million, $15.00 per $1,000 for the portion between $2 million and $4 million, and $17.00 per $1,000 for any portion above $4 million. Second-home buyers do not qualify for the homeowner exemption, which applies only to owner-occupied primary residences. Confirm current rates and classifications directly with the County of Hawaiʻi Real Property Tax Division and consult a licensed Hawaiʻi CPA for guidance specific to your purchase.
What is the difference between Mauna Lani Resort, Mauna Kea Resort, and Waikoloa Beach Resort?
The three communities occupy the same Kohala Coast corridor but function very differently:
| Community | Character | Best Fit |
|---|---|---|
| Waikoloa Beach Resort | Visitor-facing; 27-hole golf; major hotel brands; retail and dining complex | STVR-focused buyers; entry-level Kohala Coast price points |
| Mauna Lani Resort | 3,200-acre mixed-use; private owners' beach club; two championship golf courses | Buyers who want resort amenities and a more residential ownership feel |
| Mauna Kea Resort | Club-oriented; small, selective inventory; 30 closed sales totaling approximately $159M in 2025 | Top-of-market buyers prioritizing exclusivity and best-in-class finishes |
The right fit depends on how much resort infrastructure and how much residential privacy the ownership experience needs to deliver.
Is the Kailua-Kona real estate market favorable for buyers in 2026?
The Kailua-Kona market in mid-2026 is more buyer-favorable than it has been at any point since 2019. Based on aggregated MLS listing data for the six months ending June 2026, the single-family market was carrying approximately 5.7 months of supply, placing it near the upper boundary of what is typically considered a balanced market, while the condo market stood at approximately 6.9 months of supply, firmly in buyer territory. Structural supply constraints, including Kona's geography and development limitations, continue to provide a floor under pricing. Well-priced properties are still selling, and buyers who have done their due diligence on specific neighborhoods and property types are finding meaningful negotiation room.
Do I need a car for a second home on the Kona-Kohala Coast?
For nearly all buyers, yes. Kailua-Kona proper and Keauhou have walkable pockets, but the broader west-side layout assumes vehicle access for daily use. Most resort properties include covered parking, and many buyers maintain one vehicle on island rather than shipping between visits. The exception is the most central section of Aliʻi Drive, where walkable beach and town access is a genuine part of the daily ownership experience.
What does ownership in Puako look like compared to the resort communities?
Puako is a low-density residential shoreline community, not a managed resort. There are no on-site hotels, golf courses, or resort management structures. Owners have direct access to a coral reef-lined coast well-regarded for snorkeling and diving, and the community has a notably quiet, residential character relative to the three named resorts to the north. Inventory at any given time is limited, which reflects both the physical constraint of the site and the long-term nature of ownership there.