Is Honolulu Really That Much More Expensive Than The Mainland?
July 23rd, 2008 categories: Rants & Riffs
One of the major knocks about living in Hawaii is the greater cost living. Hawaii will probably always be more expensive since almost every single thing here has had to be shipped here. What follows are five reasons the cost might not be as great as you think.
1. One Set of clothes to wear your round. My wife comes from an area that has all four seasons. Before we were married, I will visit my future in-laws and I noticed that as fall approached they would take out clothes appropriate to fall. When winter came out would come in the winter clothes, then summer clothes as it began to warm up. One of the great things about Hawaii is that one can wear the same style of clothing year-round. I have never had to buy seasonal clothing, but I can imagine that all of this additional clothing adds up to a significant annual cost. After it is all said and done, perhaps the savings in clothing costs could justify part of Hawaii’s greater cost of living.
2. Low property taxes. See my recent post on the tax comparison between homes costing $750,000 in Honolulu and California.
3. Heating and cooling. Other than an occasional fireplace, I cannot recall a home in Honolulu that has had a heating system. Frankly, it is not needed. As for cooling, until recently (the last 20 years) it was unusual to find a home with central air conditioning. If a home has proper planning regarding ventilation and the use of ceiling fans, in most cases, it is not necessary to install air conditioning. Again, as compared to other parts of the United States, this means a resident of Honolulu can avoid the costs associated with heating and cooling the air in their home.
4. The Internet and Big Boxes. Prior to the Internet and the arrival of most major “Big Box” retailers, the cost of most items available for sale in Hawaii were shockingly higher than those found in the mainland. Since the coming of the first big box, Kmart, we have seen significant reductions in the overall cost of all goods. Add to this the availability of most merchandise at discounted prices via the Internet and our higher cost of living commonly known as “the Paradise tax” has become marginal rather than geometric.
5. Things that go without saying should probably go unsaid. During the winter when I see various parts of the country under attack by snowstorms, I often wonder why someone would choose to live in that climate. I fundamentally believe that all of life is a choice and if one could choose to live in Hawaii versus living and in “frozen” town USA, I think the best choice is easily clear. What value can one put on not having to deal with the issues associated with freezing temperatures and staying warm.
As time goes on, I will add to this list. The combination of all of these reasons, for me, makes the additional cost to live here worth every penny.
Today’s picture is of the long line fishing boats in Honolulu Harbor. They are located near the bend of Nimitz Highway.
Great info - keep up the great work.
All very true facts. Good article!
Exactly, wealth is not always measured in dollars, but happiness. The small trade off in earnings potential is far outweighed by the quality of life we have in Hawaii.
I’m interviewing for a tech job in Hawaii and the salary would be substantially lower (20 to 30%) than here in the silicone valley. What do you think is reasonable in terms of salary drop?