Making a Permanent Change of Station (PCS) to Hawaii is a dream come true for many service members and their families — but it also comes with big decisions, especially when it comes to housing. With high prices, unique property types, and limited inventory, Hawaii’s real estate market can be intimidating. So how do you decide whether to buy or rent when you PCS to paradise? Here’s a breakdown to help guide your decision.

Understanding the Hawaii Market

Before diving into the buy vs. rent debate, it's important to understand that Hawaii’s housing market is unlike anywhere else. The cost of living is high, inventory can be tight, and properties often come with additional expenses like maintenance fees or leasehold terms. That said, BAH (Basic Allowance for Housing) in Hawaii is generally generous, and VA loan benefits go a long way — especially for eligible military buyers.  Additionally, our islands are small and there is little opportunity to add housing inventory, which has historically led to very consistent price appreciation well above the national average.

When Renting Makes Sense

Renting may be the better option if:

• You're not sure how long you’ll be stationed: If your orders are for less than three years, renting may be the safest bet.

• You want to explore the island first: Each area of Oahu has a unique feel — from the hustle of Honolulu to the quiet of Kaneohe or Ewa Beach. Renting gives you time to find the right fit.

• You’re waiting for the market to cool: If you're concerned about buying at the peak of the market, renting lets you watch from the sidelines.

• You need flexibility: Renting is typically less of a commitment and comes with fewer responsibilities.

Tip: Consider a short-term or month-to-month lease if you’re planning to buy within the first 6–12 months after arriving.  Generally base housing will let you break your lease with no/minimal penalty if you purchase a home.

When Buying is the Right Move

Buying could be a great decision if:

• You plan to stay 3+ years: That gives you time to build equity and potentially see appreciation.

• You want to build long-term wealth: Hawaii real estate historically holds value well and can serve as a great long-term investment or future rental.

• You're using your VA loan benefit: Zero down payment and no PMI makes homeownership much more accessible for military members in Hawaii.

• You’re looking for stability: Owning your home gives you control over your living situation and monthly payments.

Bonus: Many service members choose to turn their Hawaii property into a rental when they PCS off-island — creating passive income and keeping a foothold in a valuable market.

Key Considerations

• Commute times can be tough: Traffic on Oahu is real. Choose housing that balances quality of life and proximity to base. Location should always be a key home buying consideration.

• Leasehold vs. Fee Simple: Some properties are “leasehold,” meaning you don’t own the land. Make sure you understand what you’re buying.

• Maintenance fees: Condos, townhomes, and even some single-family homes have HOA maintenance fees that are becoming increasingly more expensive.  Be sure to understand what is included in the fees and properly assess the financial health of the association during your due diligence period.

• Property taxes and GET/TAT: While Hawaii's property taxes are some of the lowest in the US, Hawaii has other taxes (like the General Excise Tax and Transient Accommodations Tax) that may apply if you plan to rent out the property in the future.

Final Thoughts

There’s no one-size-fits-all answer when deciding whether to buy or rent during a PCS to Hawaii. It depends on your financial situation, duty timeline, and long-term goals. Renting gives you flexibility and time to learn the island. Buying can build equity and provide lasting value — especially when paired with the VA loan benefit.

As a fellow Navy Reservist and full-time Realtor who specializes in military PCS moves, I’m here to help you weigh your options and make the best choice for your family and future.

Have PCS orders to Hawaii? Reach out for a free consultation — I’d be honored to help you make a smooth landing in paradise.