November 2023 Market Data
There were 4 properties that traded in November ’23 for a total volume of $9.98M. The median price per unit was $267k and the average cap rate of the deals that closed was 4.47%.
The notable sale of the month was 1313 Ahiahi Street, a property that was purchased in March 2023 for $1.7M and then listed on the market in an attempt to flip the property for $2.15M. After 200 days and multiple price cuts down to $2.05M, the property finally traded at $1.85M, great value for the new buyer. Download Market Comps Below!
Current Inventory Snapshot
There are 30 properties currently on the market for a total consideration of $119M. The average days on the market has increased by 2 weeks from 173 to 189 days. The average cap rate of deals listed is 3.97% compared to the 4.47% cap, where deals are trading, a 50 basis point spread.
If you’re interested in receiving our Hawaii Multifamily Inventory Sheet which tracks all the active listings, consolidated into one sheet, reply to this email to be added to the distribution.
The market is in constant flux and thus your criteria for acquiring property may have changed as a result.
Please complete our 2024 Buyer Criteria Survey so we can be sure to provide you access to the deals that match your preferences.
Macro Economy - Inflation Data
The consumer price index, the benchmark for inflation, rose 0.3% in December to 3.4% from a year ago. The FED's efforts to curtail inflation has been paying off and as of their December '23 meeting have decided to keep the Fed Funds rate where it stands (5.25% - 5.5%). The rhetoric from their December meeting suggested that they will be looking to slash rates in 2024, which in turn should help multifamily deals pencil due to the lower cost of debt.
Asset Management Tip – Sustainability
Multifamily owners must consider making these upgrades to ensure their property is sustainable.
Lighting Shift:
- Replace older lighting with energy efficient LED bulbs.
Be Water-Wise:
- Install low flush toilets to conserve H20 usage.
- Set sprinklers to water during optimal times of the day.
Insulate:
- Upgrade windows with better insulation to reduce output of cooling systems.
Harness the Sun:
- Install solar panels on the roof of the building or carport areas.
Recycle:
- Implement a recycling program for plastics, aluminum, glass, green waste etc.
Bike Friendly:
- Partner with City Bike Share Program or add Bike Storage
Charging Hub:
- Install electric vehicle charging stations.
These upgrades not only will boost your property’s bottom line by saving on recurring expenses, but they will also make your property more attractive and allow you to justify higher rents.
Multifamily In the News
City Acquires Iwilei Properties to Develop More Affordable Housing
New Housing Is Rising Along the Rail Line
High Mortgage Rates, Limited Supply Weigh on Oahu’s Housing Market
Bills Clear Way for Stadium Development
Networking Events
2024 CCIM / IREM Real Estate Forecast
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Wishing you a prosperous 2024! | 
