Price per square foot (PPSF) is often the first metric buyers and sellers look at when evaluating a home’s value. When used correctly, PPSF can provide valuable insights but relying on it too heavily can be misleading. So what else should you focus on when there are so many other factors that can impact a home’s worth? This is an especially important question to ask in a market as diverse as Kailua-Kona.
One thing is for sure: it’s essential to go beyond the numbers. To make more sense of PPSF analysis, here are the key takeaways we thought are essential from the 2024 Kailua Kona Single Family Home Sales data (Under $5M, 10,000~15,000 sq. ft. lots).
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Quality is More Representative than PPSF
One of the biggest confounders of PPSF is quality. Simply multiplying the median PPSF by a home’s square footage rarely reflects its real market value. In Kailua-Kona, where homes range from modest coffee shacks to ultra-luxury estates, the price per square foot tells only part of the story.
For context, in 2024, the median PPSF for single-family homes in Kona was $727 per square foot. It does not mean we can use this number to any homes. However, looking at averages within established neighborhoods can offer a more refined view of pricing trends:
Average PPSF & Sale Price by Subdivision
| Subdivision | Avg. Sale Price | Avg. PPSF |
|---|---|---|
| Keauhou Estates | $2.68M | $973/sq. ft. |
| Bayview Estates | $2.84M | $987/sq. ft. |
| Kona Vistas | $1.94M | $893/sq. ft. |
| Alii Heights | $1.76M | $928/sq. ft. |
| Kona Palisades | $1.05M | $580/sq. ft. |
| Kailua View Estates | $1.04M | $618/sq. ft. |
| Lokahi Makai | $1.04M | $768/sq. ft. |
It can be tempting to use these figures as a general pricing benchmark, but it’s important to remember that there can be variety within each neighborhood. For example, a newly remodeled home with high-end finishes typically will command a much higher PPSF than an original-condition home. Especially in Kona, whether it has an ocean view can also make a huge impact. For PPSF comparisons to be useful in the Kona market, it’s crucial to compare in the same or similar subdivisions. There are many homes that are outside of subdivisions and very small subdivisions where no recent sales history exist.
How Home Size Affects PPSF
In reality, smaller homes often have a higher PPSF because fixed costs (such as kitchens and bathrooms) are spread over a smaller footprint. This was true for 2024 in Kona: under 1,500 sq. ft. homes had a higher average PPSF than bigger homes. However, homes over 3,000 sq. ft. tended to have the lowest PPSF. There may have been less demand for oversized homes in Kona, which lowered their PPSF.
PPSF Trends by Home Size
| Home Size (sq. ft.) | Avg. PPSF |
|---|---|
| Under 1,500 | $725/sq. ft. |
| 1,500–2,000 | $691/sq. ft. |
| 2,000–2,500 | $745/sq. ft. |
| 2,500–3,000 | $852/sq. ft. |
| 3,000+ | $616/sq. ft. |
Ultra-luxury resorts in Kona, such as Kukio and Hualalai, where the typical home size is 4,000 to 5,000 sq. ft. has much higher PPSF due to their high quality. The average PPSF in these two resorts were $3,000 in 2024. Very different market indeed!
How Home Age Impacts PPSF
Effective age — which considers renovations and upkeep — is sometimes more important than the year a home was built. A well-maintained 1980s home with modern updates can sell for a similar PPSF as a newer home, while an outdated property may sell at a discount. Naturally, a newly built home with contemporary finishes will command a higher PPSF than an older home requiring updates, even in the same neighborhood.
General PPSF & Sale Price by Home Age
| Year Built | Avg. Sale Price | Avg. PPSF | Key Insights |
|---|---|---|---|
| Pre-1970 | $1.19M | $694/sq. ft. | May require major updates |
| 1970–1990 | $1.24M | $656/sq. ft. | Renovation status significantly impacts value |
| 1991–2005 | $1.37M | $701/sq. ft. | Many need updates |
| 2006–2020 | $1.65M | $836/sq. ft. | More modern finishes; generally move-in ready |
| 2021+ | $2.38M | $957/sq. ft. | New construction commands a premium |
How to Use PPSF the Right Way
To make PPSF analysis meaningful, it’s crucial to compare like with like. You can’t compare apples to oranges; you can only compare apples to apples if you want to make best decisions.
PPSF is a Guide
Most importantly, remember that PPSF analysis is just a guide. There are many factors that can influence value. A low PPSF might indicate a larger home that requires costly renovations, while a smaller home with a high PPSF could be completely move-in ready.
- Location & View- Ocean view is particularly important in Kona.
- Age & Condition – A fully remodeled 1980s home vs. an untouched 2000 home has a huge price gap.
- Size & Layout – A 1,200 sq. ft. coffee shack vs. a 4,000 sq. ft. estate offers vastly different value.
- Quality of Finishes – High-end materials raise PPSF.
- Lot & Outdoor Features – Pools, lanais, and ohana add value that may not be reflected in PPSF alone.
Bottom Line: Smart PPSF Analysis Leads to Smarter Buying and Selling
PPSF is a tremendously useful tool when used correctly. It should never be the sole factor in evaluating a property. Quality, condition, size, and location all play a role in determining true market value. When navigating Kona’s unique real estate landscape, expert guidance ensures you’re making the right move whether you’re buying or selling.
Are you looking to buy or sell smarter? Let’s connect!