HOA Dues Seem Expensive? Read This Before You Judge.

By Gretchen Harttown — Big Island Real Estate

2025 Reality Check

• Insurance is still the main driver. Many Hawaiʻi condo associations (AOAOs) saw 300%–600% premium spikes in 2024–2025. Stabilization is uneven. (Hawaii Business Magazine)

• New state law (Act 296, 2025). Hawaiʻi enacted SB1044 / Act 296 to help stabilize the property-insurance market (including reactivating HHRF and creating a loan program for condo repairs). Helpful, but not a quick fix; impact will vary by building. (DCCA)

What You’re Actually Paying For

It’s not just landscaping and a pool. On the Big Island, dues often include:
building insurance; exterior maintenance (salt air = relentless); water/sewer/trash; cable/internet (often bundled in resort condos); security; pest control; reserves for future repairs. (And no, the palm trees don’t trim themselves.) (Honolulu Magazine)

If you’re shopping resort-area condos (Mauna Lani, Waikoloa Beach, Mauna Kea), you’re also paying for gated entries, beach clubs, fitness centers, management / staff costs, and top-tier grounds, which can require large contracts with landscaping companies. You’re buying a lifestyle that allows for luxury, low owner maintenance, and the benefit of "lock and go"—and that shows up in the monthly line.

What About Kona

Across West Hawaiʻi, many buildings from the 1970s–1990s are now in the heavy replacement cycle (roofs, plumbing, electrical, elevators). Where reserves lag, owners can face special assessments and fee increases. Older buildings + deferred work = higher dues or surprise bills. (Hawaii Business Magazine)

The Insurance Factor (Still Rough)

Global reinsurance costs and local risk have kept master-policy premiums elevated. Some associations layered policies, raised deductibles, or shifted interior coverage expectations to owners. Act 296 aims to steady the market, but expect gradual changes as we are already seeing in some complexes, not immediate rollbacks. (Honolulu Civil Beat)

Are HOAs Making a Profit?

No. Hawaiʻi condo associations are typically organized as nonprofit corporations. Dues fund operations and reserves; any year-end surplus generally rolls to reserves, offsets next-year dues, or covers known upcoming work. (Hawaii Condo Law)

How To Compare Two “Expensive” HOAs (Like a Pro)

1. What’s included? Insurance? Water/sewer? Cable/internet? Security?

2. Insurance details: current premium trend, deductibles, wind/hurricane coverage, owner HO-6 expectations.

3. Reserves: percent funded, date of last reserve study, near-term projects.

4. Assessments: recent/active? purpose? timeline?

5. Age & systems: 1970s–1990s buildings are often mid-overhaul.

6. Amenities fit: paying for beach club/fitness you’ll actually use vs. won’t.

Bottom Line

Everything costs more in Hawaiʻi—materials, labor, logistics—and the ocean wins every day. Add insurance volatility and you get sticker shock. But a higher fee can be the honest price of a building that’s well-insured, well-maintained, and well-resourced—versus a “cheap” fee that punts costs into surprise assessments. When you can lock-and-go, your roof doesn’t leak, and termites are someone else’s problem… the math starts to make sense.

Gretchen Harttown, REALTOR®
NAR Green • ABR • Luxury Specialist
Big Island, Hawaii 
Questions about HOA dues and condo ownership? Contact me