Kihei real estate lines South Maui's six miles of Pacific coastline, encompassing one of Hawaii's most active condo and vacation rental markets. Condo prices in Kihei range from $400K for older studio and one-bedroom units in complexes like Kihei Bay Surf and Maui Sunset to $1.5M+ for updated oceanfront 2-bedroom units in premium buildings like Kamaole Beach Royale and The Palms at Wailea. Single-family homes in Kihei proper are less common and typically list between $900K and $2M depending on proximity to the beach and condition.
Vacation rental market and STR regulations
Kihei's condo market is heavily intertwined with short-term vacation rental opérations. Kihei vacation rental condos in project-approved STR-eligible buildings generated strong returns prior to Maui County's post-2023 fire regulatory changes, which have tightened permit issuance significantly. Buyers targeting STR income must verify active, transferable permits with Maui County before purchase; buying a condo marketed as vacation-rental-eligible without a valid permit creates both income and legal risk. Long-term rental alternatives generate 3.5-4.5% gross yields on Kihei condos after HOA fees.
HOA fees in Kihei condo complexes vary widely, from $400/month in older low-amenity buildings to $900+/month in full-service pools-and-maintenance communities directly on the beach. Maui property insurance costs have increased substantially since the 2023 Lahaina fires, adding to carrying costs across all South Maui properties. Conventional financing covers most Kihei condo purchases within the Maui high-cost limit, though buyer should confirm specific condo project approval status with their lender before going under contract. An experienced Maui buyer's agent who tracks STR permit status in each complex is the most valuable resource for navigating Kihei's complex investment landscape.
