If you're keeping an eye on Hawaiʻi’s real‑estate trends (and especially the condo market on Oʻahu), there’s one story you can’t afford to miss: the rapidly rising insurance costs are putting serious pressure on condo associations, buyers and sellers alike.

According to a recent article in Hawaii Business Magazine, the price of insuring condominium buildings on Oʻahu has spiked dramatically—some associations reporting a 300% to 600% increase in premiums over the past two years.

Here’s what’s happening and what it means for you:

What’s Driving the Increase?

• Natural‑disaster risk is climbing: floods, hurricanes, windstorms and wildfires are harder for insurers to ignore. As the article notes, global re‑insurance losses have exceeded $100 billion annually for several years.

• Older building infrastructure = higher risk: Aging plumbing, electrical systems and deferred maintenance mean more claims (especially water damage, the top driver of losses). For example, many buildings now face deductibles of $50,000 to $250,000, up from $5,000 in prior years.

• Mortgage lenders are reacting: If a condominium association doesn’t carry sufficient insurance (what’s called “100% of the cost to rebuild”), banks may deny loans—meaning buildings can become harder to buy into or finance.

Effects on the Market

• The median condo‑sales price in April 2025 fell 4.4% compared to April 2024. Meanwhile, the typical “days on market” jumped from 12 days in April 2022 to 43 days in April 2025.

• Inventory has grown: What used to be about 1.5 months’ worth of condo supply now stands at about 6.8 months. More inventory + rising costs = more bargaining power for buyers.

• Rising fees = falling value: As one condo‑market expert put it, for every $100 monthly increase in fees, a condo’s value can drop roughly $20,000.

What Buyers & Owners Can Do

• Buyers should prioritise condos with up‑to‑date plumbing, robust reserve funds and active, engaged boards that keep maintenance current. Deferred maintenance is the red‑flag.

• Owners/Boards need to be transparent: Ensure recent financials, insurance coverage documents and maintenance records are accessible. Handling issues proactively can avoid huge special assessments.

• Consider the big‑picture: While insurance relief is being pursued by state lawmakers (such as via a bill expanding the powers of the Hawaiʻi Property Insurance Association) the full fix isn’t here yet.

Why This Matters for Hawaiʻi

Condominium living is a major component of Hawaiʻi’s housing supply—especially in urban and resort areas where land is limited. With insurance costs soaring, not only do individual buyers feel the squeeze, but the state’s ability to build more vertical, affordable housing may also be impacted.

Bottom line: If you’re thinking of buying, selling or holding a condo on Oʻahu (or anywhere in Hawaiʻi with similar risks), the insurance story is no longer a sidebar—it’s front‑and‑center. Understanding how these rising costs feed into fees, valuations and financing could be the difference between a great move and a costly surprise.

Want help digging into a specific building’s docs, reserve fund or insurance exposure? Our team can help you ask the right questions and evaluate the risks.

Source: Hawaii Business Magazine