Kapaa, meaning solid in Hawaiian, is present in the district of Puna. Unlike other stereotypical tourist areas in Kauai, this town has a relaxed ambience. The economy of Kapaa is driven mainly by tourism through a large number of hotels and restaurants catering to a large variable population which visits the region in droves every year to soak in the picturesque sights and wide variety of vacation activities. With a breath-taking landscape and a near ideal location, Kapaa is a wonderful place to own real estate, which makes real estate in Kapaa a continuously growing market. Kapaa has also been the location for a number of film productions, thus increasing the value of homes in Kapaa. 

Market trends

The real estate market prices in Kapaa have been decreasing steadily over the past five years. It reached an all-time low in 2009, due to the prevalent country-wide real estate market crisis. The median sales prices have decreased by over 45% over the past five years. Compared to the first quarter of 2011, the median sale price has decreased by more than 9%, which now stands at $325,000. In comparison to the previous year, this represents a decline of more than 17%. The number of sales, however, has increased in comparison to the first quarter of 2011. This is a welcome change and is reason to hope that real estate in Kapaa will make a comeback. The average listing price has also decreased. However, as the number of sales increase, it is expected that the listing price and the median sales price. The average price per square foot now stands at $330, a decrease of more than 10% compared to the previous year. However, with the growing instability of the stock market, it is expected that investors will turn to real estate for investments. Kapaa real estate is hence expected to grow and expand.

Mortgage rates

There are a large number of brokers, lenders and banks in Kapaa offering mortgages at different interest rates. In general, the interest rates depend on the number of years of expected mortgage payment, principal amount and type of loan. The annual percentage rate ranges from 3 to 4% depending on whether the mortgage is 15 year, 30 year or 40 year fixed type. It is recommended that quotes are obtained from different mortgage sources to get an idea of the mortgage rates in the area. As Kapaa real estate is going through a down period, it is expected that lenders will be charging a higher interest rate than usual.


Kapaa has a diverse but well-knit community. Asians and Americans make up most of the population. The people of Kapaa enjoy a comfortable standard of living. The population is about 9000 and the people live a relaxed lifestyle. The crime rates are fairly low.