How to Buy Beachfront Property

The Big Island of Hawaii is a breathtaking spot for those seeking beachfront property, offering dramatic coastlines, opulent oceanfront luxury resorts, and stunning real estate. However, buying a home here—or any on-the-coast setting—comes with unique considerations that differ from inland real estate purchases. From location to zoning regulations to lava zones and shoreline public access laws, here's everything you need to know before buying beachfront property.

Using the gorgeous tropical setting of Hawaii Island as our guide, the first thing to understand about coastal homes is that diverse geography means not all beachfront properties are the same. Each region offers a distinct experience, so buyers must carefully consider which area best fits their lifestyle and investment goals.

The Kohala Coast epitomizes luxury beachfront living, offering prestigious oceanfront properties within world-class resorts like Mauna Kea, Hualalai, Kukio, and Mauna Lani. Known for its dry, sunny climate, this region provides an ideal setting for year-round resort-style living with access to private beach clubs, championship golf courses, and fine dining. With consistent weather and high demand for vacation homes, it remains a top choice for buyers seeking a traditional white-sand lifestyle and strong investment potential.

The Kona Coast combines convenience with stunning ocean views, offering a mix of luxury estates, oceanfront condos, and residential communities, particularly along Ali'i Drive. Its proximity to restaurants, shopping, and Kona International Airport makes it ideal for buyers seeking accessibility without sacrificing coastal beauty. However, with a number of older homes, some properties may have non-conforming zoning regulations, which could impact future renovations and setback requirements.

Along the Hilo coastline sits a tropical, secluded setting with lush rainforests, waterfalls, and vibrant greenery. While frequent rainfall enhances its natural beauty, it also brings plenty of humidity and moisture levels. Oceanfront properties here are generally more affordable than those on the Kohala and Kona coasts, but the tradeoff is rockier, less traditional beachfront settings.

The general steps to securing a beachfront property on Hawaii's largest island are no different than that of a mainland residential purchase, which includes the following:

1. Seek out approval for financing (or secure necessary funds for a cash purchase)
2. Identify a home befitting your needs and lifestyle
3. Make an offer or negotiate an optimal price
4. Schedule inspections and negotiate further, as necessary
5. Finalize funding, and close on your new property

However, Hawaii's unique standing quickly transforms steps 2 and 4 into exhilarating and sometimes challenging affairs. Below, we detail several points to consider as you search for and vet viable beachfront properties for purchase.

Coastal erosion is a significant factor when purchasing beachfront property in Hawaii. The ever-changing shoreline means that homes must comply with strict setback regulations, requiring structures are built at a safe distance from the ocean. Setback requirements generally range from 30 to 40 feet from the vegetation line or cliff edge, but these distances can be extended based on lot size and erosion risk. You will want to fully appreciate the impact of these regulations before purchasing, as they can limit expansion or rebuilding options (and your proximity to the ocean) in the future.

Due to the island's vulnerability to hurricanes, flooding, and volcanic activity, homeowners insurance rates can vary widely depending on location. Foremost, the island is divided into nine different lava hazard zones. Zone 1 represents the highest risk, while Zone 9 is considered the least hazardous. Oceanfront homes in lower-numbered zones often require expensive state-backed lava insurance and may be difficult to finance through traditional lenders. In contrast, properties in Kohala and much of Kona fall into lower-risk zones, making them more desirable and pricier to secure. However, with a lesser burden of higher insurance costs, these sites offer long-term stability and greater resale value.

Many oceanfront properties on the Big Island fall within Special Management Areas (SMAs), which dictate land use and development. These properties may require special permits for renovations, landscaping, or even minor structural modifications. Some parcels have dual zoning, meaning portions of the land are designated as conservation areas, restricting construction. Thorough due diligence is necessary to ensure property use aligns with state laws and local regulations.

Hawaii's laws ensure that all beaches remain public, regardless of whether they are within private communities. Even in high-end resorts such as Mauna Kea or Kukio, public beach access is mandated by law—essentially, the land that falls below the highest wave line is accessible by the public. For buyers considering properties along the Ala Kahakai National Historic Trail, pedestrian access may be required between their homes and the ocean. Clifftop properties are not exempt from these public access rights, reinforcing the importance of understanding Hawaii's shoreline laws before purchasing.

While properties in developed areas like Kona and Kohala have access to modern utilities, more remote oceanfront locations may rely on catchment water systems instead of municipal supply. Additionally, high-speed internet and cell service can be unreliable in less developed coastal areas. Many properties require septic systems rather than public sewer connections, further emphasizing the need for thorough infrastructure assessments before purchasing.

Navigating the complexities of beachfront property ownership on the Big Island requires expertise that only local professionals can provide. Partnering with a real estate team—including financing, attorney, and real estate broker—with deep roots in the community ensures that buyers receive valuable insights into zoning laws, conservation efforts, shoreline regulations, and future island development.

Securing financing for an oceanfront home on the Big Island requires careful planning. Traditional lenders may be hesitant to finance homes in certain areas due to the high insurance cost and potential loss risk. Before loan approval, expect extensive due diligence—even in low-risk areas—to evaluate shoreline setbacks, erosion risk, and overall long-term viability. Establishing a relationship with a trusted bank and local lender familiar with Big Island real estate can mitigate many of these concerns.

Given the complexities of buying oceanfront property, a real estate attorney can provide additional safeguards. An attorney can help navigate zoning regulations, review contracts, and identify any legal risks associated with the purchase. For luxury properties, unique clauses and restrictions may apply, and having legal expertise ensures that buyers fully understand their obligations and protections before closing a deal.

Local agents bring an understanding of the island's unique geography and cultural heritage, helping buyers find a property that aligns with both their lifestyle and long-term investment goals. A knowledgeable real estate team provides access to off-market opportunities, ensures compliance with local permitting processes, and offers guidance on environmental impact considerations, making the buying process seamless and informed.

Buying beachfront property on the Big Island of Hawaii is an exciting opportunity but requires thoughtful due diligence at every step. If you're ready to discover even more of what Hawaii has to offer, contact the Hawaii Development Group today to start your Big Island real estate journey.