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Alaska vs Hawaii:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Alaska and Hawaii. Updated for 2026.

MetricAlaskaHawaii
Median Home Price$350K$830K
Property Tax Rate1.19%0.28%
Avg Closing Costs$6K$12K
Closing Cost %1.8%1.5%
Transfer TaxNone0.2%
Homeowners Insurance$1,400/yr$1,200/yr
First-Time Buyer Program
AHFC First-Time Homebuyer
Tax-exempt mortgage bonds
HHFDC Hula Mae Program
Below-market rate mortgages
Verdict

Alaska and Hawaii are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Alaska
Home Price$350,000
Down Payment (10%)$35,000
Loan Amount$315,000
Monthly P&I$1,991
Monthly Property Tax$347
Monthly Insurance$117
Monthly PMI$131
Total PITI$2,586/mo
Annual property tax: $4,165
Hawaii
Home Price$830,000
Down Payment (10%)$83,000
Loan Amount$747,000
Monthly P&I$4,722
Monthly Property Tax$194
Monthly Insurance$100
Monthly PMI$311
Total PITI$5,326/mo
Annual property tax: $2,324

The monthly payment difference is $2,740/month — thats $32,880/year or $986K over the life of a 30-year loan. Buying in Alaska is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Alaska
$111K/yr
minimum household income
Hawaii
$228K/yr
minimum household income

To afford the median home in Hawaii, you need a household income of approximately $228K/year. In Alaska, you need $111K/year — less by $117K/year. That $117K income gap means Alaska is accessible to a significantly wider range of households.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Alaska cost 58% less than in Hawaii — that's a difference of $480K on the median home. For buyers relocating from Hawaii to Alaska, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Hawaii home could fund a much larger down payment in Alaska, potentially eliminating PMI and reducing your monthly payment dramatically.

Hawaii has a moderate property tax advantage at 0.28% versus Alaska's 1.19%. While the rate gap of 0.91% may seem small, it translates to an annual difference of approximately $1,841 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $15K in savings.

Closing costs are a one-time but significant expense. Hawaii averages $12K in closing costs (1.5% of purchase price) while Alaska averages $6K (1.8%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Alaska's AHFC First-Time Homebuyer provides Tax-exempt mortgage bonds, while Hawaii's HHFDC Hula Mae Program offers Below-market rate mortgages. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Alaska homes cost $480K less than Hawaii on average. That translates to roughly $2,740 less per month in total housing costs if you choose Alaska. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Alaska or Hawaii?
Alaska is cheaper overall. The median home costs $350K compared to $830K in Hawaii, and the total monthly PITI payment is $2,586 versus $5,326. That works out to $2,740 less per month or $32,880 less per year in Alaska.
How much more are property taxes in Alaska vs Hawaii?
Alaska has a property tax rate of 1.19% compared to 0.28% in Hawaii. On the median home, that means Alaska homeowners pay approximately $4,165/year in property taxes versus $2,324/year in Hawaii — a difference of $1,841/year.
Which state has better first-time buyer programs, Alaska or Hawaii?
Alaska offers the AHFC First-Time Homebuyer (Tax-exempt mortgage bonds), while Hawaii has the HHFDC Hula Mae Program (Below-market rate mortgages). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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