For years Kapolei has been positioned as Oahu’s future “Second City”— an ideal place to live, work and play— and now it’s finally coming true. New developments such as the University of Hawaii West Oahu campus, The Salvation Army’s Kroc Community Center and the Department of Hawaiian Home Lands regional mall are spurring numerous neighboring housing developments.

But because of so much housing supply, not surprisingly, the Kapolei/Makakilo area was one of the first Oahu areas to see prices adjust downward. Some buyers worry that the home they buy now won’t hold its value when so many new homes are being built nearby. But for first time buyers who are looking for a place to live longterm, Kapolei offers some of the most affordable prices, and a lot of promise for future services and amenities, which often drive significant price appreciation.

Prudential Locations Realtor and Partner Bernie Tong notes that while average prices haven’t really changed much, what has changed is price per square foot. Increasingly, buyers are able to get more for their money as the average price per square foot drops. This has resulted in many multi-generational buyers, looking for larger, ohana-style residences, coming into the Kapolei/Makakilo market.

In addition, with interest rates staying low, and possibly dropping, entry level buyers will benefit from lower price-per-square-foot prices. A continued stream of buyers will keep prices fairly steady in this area.