By Kai Ioh and KE TEAM Hawaii
Kai Ioh is a luxury real estate advisor based in Kona, Hawai‘i, specializing in second home, resort, and ultra-high-net-worth markets across the Big Island.
WalletHub recently ranked Hawaii #1 in its 2026 Happiest States in America study!
Having lived on the Big Island for 25 years now, I was happy to see the news.
The study compared all 50 states across 30 measures, including physical and emotional well-being, work environment, and community. Hawaii ranked first in life satisfaction, had the second-lowest depression rate, and approximately 84% of adults reported being in good or better health. According to the CDC's state life tables, Hawaii also leads the nation in life expectancy at 80.0 years. Pretty impressive numbers.
There is no question that Hawaii is a wonderful place to live. But I don't believe Hawaii is necessarily the answer to everyone's happiness. People come and go from the islands, and that is part of the reality of living here.
Why Hawaii Feels Like a Happy Place
For me, one of the biggest reasons is the people.
I often hear clients say, "People on the Big Island are so nice!"
Strangers greet each other with a smile. Neighbors stop to chat. Drivers stop to let pedestrians cross the street. These small, everyday interactions make life here feel comfortable and welcoming.
Compared with Oahu, the Big Island has fewer people and much less. There is still a sense of personal connection and community that I really appreciate.
But perhaps Hawaii's greatest advantage is its climate, which allows us to spend time outdoors year-round.
I probably don't exercise enough, but when I think about my typical day, I'm surprisingly active. Walking, pulling weeds, playing golf, doing things around the house. And I can do these things 365 days a year. That alone has to be good for my health!
Of course, sunshine doesn't guarantee good mental health. But I do believe the climate has a meaningful influence on our daily habits and physical well-being.
For me, the people and the climate are the two greatest attractions of Big Island living.
Even Paradise Has Its Challenges
One part of the WalletHub ranking that made me pause was Hawaii's relatively favorable financial well-being indicators.
Despite its reputation for being expensive, Hawaii performs reasonably well in household income and employment statistics. But everyday financial life is not necessarily easy. Housing, rent, electricity, food, and construction costs are among the highest in the nation. Many households rely on two incomes, and some residents work multiple jobs to make ends meet.
A 2019 Financial Health Network study found that 69% of Hawaii adults were struggling with at least one aspect of their financial lives. The data is somewhat dated, but it illustrates the challenges behind the economic statistics.
On the west side of the Big Island, where I work, we have some of the world's wealthiest residents. At the same time, many local families struggle with housing costs and everyday expenses.
Both realities coexist in Hawaii.
For those of us fortunate enough to enjoy a comfortable life here, I think it's important to support local businesses, appreciate the people who provide our everyday services, and remain connected to the community.
The local people who make this island special also deserve to be able to live here comfortably.
The Simple Luxury of Living in Hawaii
One thing I particularly enjoy about the Big Island is the simplicity of life.
Getting together with friends and friends on a lanai or at the beach, enjoying a meal overlooking the ocean in perfect weather year-round. No special dress code, no expensive restaurant reservation. No AC, just natural breeze. Sometimes those simple moments feel like the greatest luxury of all. Of course, I also love a wonderful Michelin-starred dining experience in cities, so perhaps the two shouldn't be compared!
I also appreciate how casual life is here. It's perfectly normal to see someone worth hundreds of millions of dollars walking around in an ordinary T-shirt, shorts, and slippers.
There is less pressure to impress other people or worry about appearances.
Perhaps authenticity is another form of luxury.
Even Happiness Becomes Ordinary
One interesting thing about human nature is how quickly we get used to our surroundings, no matter how extraordinary they may be.
Psychologists call this hedonic adaptation.
A new car or dream home initially brings enormous excitement, but eventually becomes part of everyday life. Even a spectacular ocean view can become ordinary.
After 25 years in Kona, I often forget to watch the sunset. Or too busy to watch the sunset.
I've also noticed something I call "sun fatigue."
When we get a rare rainy day in Kona, I actually feel a little happy. I can stay home and relax without feeling guilty about wasting another beautiful, sunny day. My daughters, who were born and raised in Kona, say the same thing. Maybe this is something only locals understand.
Happiness is partly about remembering to appreciate the ordinary things we tend to take for granted.
The Changing Meaning of Luxury
The WalletHub ranking got me thinking about what actually makes people happy. I started reading other studies, including the World Happiness Report and Harvard's long-running Study of Adult Development.
Although these studies define and measure happiness differently, one common theme stood out to me: a happy life is not necessarily determined by money.
Interestingly, this aligns with a broader trend I've been observing in luxury real estate.
Traditionally, luxury was often associated with visible success: bigger houses, expensive cars, and recognizable brands. Those things still matter to many people. But one of the important concepts in today's luxury market is quiet luxury, with a shift in emphasis from possessions to experiences and lifestyle.
Time, health, privacy, family, nature, and personal experiences are increasingly central to how people define luxury.
McKinsey's research on luxury and wellness has also identified growing consumer interest in experiences, travel, and personal well-being rather than simply accumulating more possessions.
I see this reflected in the luxury resort market here on the Big Island.
A $10 million home can certainly be extraordinary. But what buyers may value most is something quite simple: morning coffee on the lanai, the comfort, security and climate that allow them to sleep with the windows open year-round, walks along the beach, and time on the lanai with family.
Perhaps the true value of a luxury home isn't just its price, size, or impressive features.
It's the lifestyle the home allows you to enjoy.
Five Elements of Modern Happiness
After reading various studies and reflecting on my own experiences, I feel several common elements seem to contribute to happiness.
This is certainly not a scientific model. Just my personal interpretation.
1. Wellness
Health is the foundation of happiness.
Both Emil and I have experienced health challenges in recent years, which have made us appreciate just how important good health is. I genuinely believe that when we have our health, many other challenges in life become easier to overcome.
Hawaii's climate and natural environment don't guarantee good health, but they certainly make it easier to develop and maintain healthy habits. Living in Hawaii simply contributes to wellness.
2. Relationships and Community
Harvard's long-running Study of Adult Development has found a strong association between good relationships, health, and happiness.
The 2025 World Happiness Report also examined data from 142 countries and territories and found that people who shared meals with others more frequently tended to report greater life satisfaction and more positive emotions. The research doesn't establish simple cause and effect, but the findings are interesting.
In Hawaii, we value the concept of ohana, or family. Close friends and neighbors are often called ohana. We have KE Team Ohana. Having a place where you belong, and people you feel connected to, is an important part of happiness.
3. Authenticity
One thing I love about the Big Island is that you don't have to impress anyone. Of course, social status exists everywhere. But I feel there's more room here to simply be yourself.
Being comfortable with who you are, without constantly comparing yourself to others, seems like another important part of happiness.
4. Appreciation
We tend to get used to the good things in life. Beautiful views, wonderful weather, and comfortable surroundings eventually become ordinary. But when I stop and think about it, being able to eat outside in January, pick fruit from the garden, and look out at the Pacific Ocean is pretty remarkable.
Maybe noticing and appreciating these small everyday pleasures contributes more to happiness than we realize.
5. Finding the Right Place
I don't think there's one perfect place for everyone. Someone who loves living in Manhattan might find the Big Island far too quiet. On the other hand, someone else might arrive here and immediately feel they've finally found the place where they belong.
What matters is understanding how you want to live and finding an environment that supports that lifestyle.
"Sumeba Miyako": Home Is Where You Make It
There is a Japanese saying I grew up hearing from my mother whenever our family moved(we moved a lot): 住めば都 (Sumeba Miyako).
It roughly means that wherever you settle can become your own special place.
I've come to appreciate the depth of that expression. It can mean getting used to a place, but I also interpret it as the ability to make almost anywhere feel like home.
After 25 years on the Big Island, I honestly can't say whether Hawaii makes everyone happy. But for me, it offers an environment where it's easier to create a lifestyle that brings happiness.
So, is Hawaii really the happiest state in America?
For me, after 25 years on the Big Island, this is where I belong.
Perhaps that matters more than any ranking.
Research and Reference Sources
This article combines my personal observations with findings and themes from WalletHub's Happiest States in America 2026, CDC State Life Tables, the World Happiness Report, Harvard's Study of Adult Development, the Financial Health Network's 2019 Hawaii Financial Health Pulse, and McKinsey's research on luxury and wellness. Observations about my clients and life on the Big Island are personal experiences, not scientific conclusions.
WalletHub, Happiest States in America
https://wallethub.com/edu/happiest-states/6959
WalletHub, Happiest Cities in America
https://wallethub.com/edu/happiest-places-to-live/32619
SmartAsset, Where Americans Are Happiest
https://smartasset.com/data-studies/where-americans-are-happiest-2026
Happy City Index
https://happy-city-index.com/
World Happiness Report
https://www.worldhappiness.report/
CDC State Life Expectancy
https://www.cdc.gov/nchs/data/nvsr/nvsr74/nvsr74-12.pdf
