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Kris Burmeister, whose home was destroyed by lava in 2018, has bought lots inundated by the flow and gives private tours of the rift zone.
By Christine MAI-Duc
Photographs by Keatan Kamakaiwi for The Wall Street Journal
Jan. 17, 2024, 11:00 am ET
PUNA, Hawaii—In 2018, a large volcanic eruption spewed lava, rock and ash into the middle of a subdivision here, gobbling up more than 700 homes and displacing thousands of residents in a slow-motion disaster. Today, it is Hawaii’s fastest-growing region.
Land in an active lava zone, it turns out, is relatively cheap. Lured by a shot at attainable homeownership in paradise, island dwellers and mainland transplants alike have been flocking to this area in the shadow of Kilauea, driving up prices in the Puna District. Still, the area remains one of the last affordable refuges on the cheapest island in Hawaii, America’s most expensive state.
“In terms of the last bastion of affordability, Puna is it,” said Jared C. Gates, a Realtor who was raised on Oahu and came to the Big Island for college in the 1990s. He purchased his first home in 2005, a modest fixer-upper in Puna, on his salary as a waiter.
Over the past few years, he has been getting more business in Leilani Estates, the neighborhood where the 2018 eruption began.
None of the homes that were inundated by lava have been rebuilt. Many homeowners have sold their properties to neighbors or the county in a federally funded buyback program, but that land remains vacant for now. The land has been so transformed that it is hard for remaining owners to know even where their property begins and ends.
“It took out roughly a third of the subdivision; totally surreal,” Gates said last fall. “And houses are selling there again.”
Businesses in Pahoa, a town that serves as the local hub for Puna residents, who have been flocking to the area in the shadow of Kilauea.
Among Gates’s listings that day was a three-bedroom, two-bath home with lush landscaping, two blocks from the mile-wide lava field where heat and steam still radiate from vents in the petrified landscape. “It’s a beaut,” he said. “It will sell.”
Three weeks later it did, for $325,000, cash.
The story of how serene-looking slices of suburbia came to inhabit an active volcanic rift zone is well-known here. In the 1960s, land speculators—aided by a new county government hungry for tax revenue—bought thousands of acres and carved it into lots of an acre or more that were snapped up by investors.
There were virtually no requirements that developers pave roads, place utility lines or build other essential infrastructure. To this day, there is no wastewater treatment plant or hospital. Many of the district’s 51,000 residents rely on filtered rainwater and cesspools to dispose of sewage.
Early buyers included Native Hawaiians looking for an affordable place to call home and mainland hippies intent on off-grid living. As home prices rose in Hawaii and across the nation, however, more working families and mainland retirees went hunting for deals on the Big Island.
County Councilwoman Ashley Kierkiewicz, who represents Puna, said rush-hour traffic on the rural, two-lane highway that connects Puna to Hilo, the county seat roughly 20 miles away, is so bad that she leaves her home 1.5 hours early to get to work.
Hawaii County Councilwoman Ashley Kierkiewicz, who lives in and represents Puna, grapples with rush-hour traffic.
County officials say rules tied to federal funding bar local government from building affordable housing in lava zones 1 and 2, which are the riskiest and make up most of lower Puna. State law also prohibits them from spending most local money on private subdivisions, meaning that roads are largely maintained by owner associations.
Hawaii County Mayor Mitch Roth said that while the county has added a new firehouse, police station and park facilities there in recent years, the county has limited funds to make major investments in high-risk areas.
“Are we going to invest public money in a high-risk place…knowing that whatever you build could be taken out by lava at any time?” said Roth.
Not Even Molten Lava Can Cool This Hot Housing Market
The eastern section of Hawaii’s Big Island continues to attract home buyers searching for a cheap piece of paradise.
Kris Burmeister, whose home was destroyed by lava in 2018, has bought lots inundated by the flow and gives private tours of the rift zone.
By Christine MAI-Duc
Photographs by Keatan Kamakaiwi for The Wall Street Journal
Jan. 17, 2024, 11:00 am ET
PUNA, Hawaii—In 2018, a large volcanic eruption spewed lava, rock and ash into the middle of a subdivision here, gobbling up more than 700 homes and displacing thousands of residents in a slow-motion disaster. Today, it is Hawaii’s fastest-growing region.
Land in an active lava zone, it turns out, is relatively cheap. Lured by a shot at attainable homeownership in paradise, island dwellers and mainland transplants alike have been flocking to this area in the shadow of Kilauea, driving up prices in the Puna District. Still, the area remains one of the last affordable refuges on the cheapest island in Hawaii, America’s most expensive state.
“In terms of the last bastion of affordability, Puna is it,” said Jared C. Gates, a Realtor who was raised on Oahu and came to the Big Island for college in the 1990s. He purchased his first home in 2005, a modest fixer-upper in Puna, on his salary as a waiter.
Over the past few years, he has been getting more business in Leilani Estates, the neighborhood where the 2018 eruption began.
None of the homes that were inundated by lava have been rebuilt. Many homeowners have sold their properties to neighbors or the county in a federally funded buyback program, but that land remains vacant for now. The land has been so transformed that it is hard for remaining owners to know even where their property begins and ends.
“It took out roughly a third of the subdivision; totally surreal,” Gates said last fall. “And houses are selling there again.”
Among Gates’s listings that day was a three-bedroom, two-bath home with lush landscaping, two blocks from the mile-wide lava field where heat and steam still radiate from vents in the petrified landscape. “It’s a beaut,” he said. “It will sell.”
Three weeks later it did, for $325,000, cash.
The story of how serene-looking slices of suburbia came to inhabit an active volcanic rift zone is well-known here. In the 1960s, land speculators—aided by a new county government hungry for tax revenue—bought thousands of acres and carved it into lots of an acre or more that were snapped up by investors.
Big Island dwellers trade volcanic risk for cheaper housing
A lack of affordable housing in Hawaii is causing people to choose areas subject to volcanic hazard.
There were virtually no requirements that developers pave roads, place utility lines or build other essential infrastructure. To this day, there is no wastewater treatment plant or hospital. Many of the district’s 51,000 residents rely on filtered rainwater and cesspools to dispose of sewage.
Early buyers included Native Hawaiians looking for an affordable place to call home and mainland hippies intent on off-grid living. As home prices rose in Hawaii and across the nation, however, more working families and mainland retirees went hunting for deals on the Big Island.
County Councilwoman Ashley Kierkiewicz, who represents Puna, said rush-hour traffic on the rural, two-lane highway that connects Puna to Hilo, the county seat roughly 20 miles away, is so bad that she leaves her home 1.5 hours early to get to work.
Hawaii County Councilwoman Ashley Kierkiewicz, who lives in and represents Puna, grapples with rush-hour traffic.
County officials say rules tied to federal funding bar local government from building affordable housing in lava zones 1 and 2, which are the riskiest and make up most of lower Puna. State law also prohibits them from spending most local money on private subdivisions, meaning that roads are largely maintained by owner associations.
Hawaii County Mayor Mitch Roth said that while the county has added a new firehouse, police station and park facilities there in recent years, the county has limited funds to make major investments in high-risk areas.
“Are we going to invest public money in a high-risk place…knowing that whatever you build could be taken out by lava at any time?” said Roth.