Buying a Condo or Home in Keauhou, Kona: What to Know

Keauhou is a resort and residential area at the south end of Kailua-Kona 96740, with oceanfront and golf course condos, townhomes, and ocean view homes. Some properties are leasehold and rental rules differ by complex, so buyers should check both before making an offer.

Key takeaways

• Keauhou offers oceanfront and golf course condos, townhomes, and ocean view homes.

• Some Keauhou properties are leasehold and others are fee simple.

• Rental rules differ by complex, and some do not allow short term rentals.

• Keauhou is popular with second home buyers and full time residents.

Where Keauhou is and what it offers

Keauhou begins about six miles south of Kailua Village along Aliʻi Drive and the coast. The area includes Keauhou Bay, a golf course, a shopping center with a grocery store and theater, and some of the best sunset views in Kona. It is quieter than town but close to everything.

Keauhou is also rich in Hawaiian history. Much of the land is owned by Kamehameha Schools, which continues to plan improvements around the bay.

Types of homes in Keauhou

Condos are the most common property in Keauhou. Some are directly on the ocean, some overlook the golf course, and some sit on the hillside with wide views. There are also townhomes and single family homes in several neighborhoods, including estate homes at higher price points.

Many Keauhou condos are sold furnished and ready to use, which appeals to second home buyers.

Leasehold and fee simple

Some Keauhou properties are leasehold. That means the buyer owns the home or condo and leases the land beneath it for a set term. Leasehold units are usually priced lower than fee simple units, but the remaining lease term affects financing, resale, and what happens when the lease ends. Confirm the land tenure for every property and ask for the lease terms in plain words.

Rental rules

Rental rules matter to many Keauhou buyers. Each complex has its own rules. Some allow vacation rentals, some require longer minimum stays, and some do not allow rentals at all. County rules apply as well. Buyers who plan to rent should confirm both before making an offer.

What should buyers check before making an offer in Keauhou?

Confirm whether the property is fee simple or leasehold. Read the association's rules and financial reports, including the reserve fund and any planned special assessment. Check what the monthly fee covers. Ask about rental rules. Get an insurance quote, and have the unit inspected, with extra attention to salt air wear near the ocean.

Selling a home or condo in Keauhou

Sellers should price Keauhou properties from recent sales in the same complex and nearby ones. Gather the association documents early, present the lease or fee simple status clearly, and market to off island buyers through the MLS and the eXp Realty network.

Common questions

Are Keauhou condos leasehold?

Some are and some are not. Buyers should confirm the land tenure for each property before making an offer.

Can I rent out a condo in Keauhou?

It depends on the complex and on county rules. Some complexes allow vacation rentals and some do not.

Comparing communities? See the guide to Kona luxury resort communities: Kohanaiki, Kūkiʻo, Hualālai, Hōkūliʻa, Keauhou, Waikoloa and Mauna Lani side by side.

Sources: Hawaiʻi Real Estate Branch, resources for condominium owners; County of Hawaiʻi Real Property Tax Office.

About the author: Maile Woodhall (pronounced Miley) is a licensed Hawaiʻi REALTOR (RS-88019) with The Agency Team Hawaii, eXp Realty (RB-21841), born and raised in Kona. Questions? Call or text (808) 482-5800.

Related guides: Buying a home in Kona; Buying a Condo in Kona: Fees, Rental Rules, and What to Check; What should I know about condo fees and HOA rules in Kona?; Can I rent out my Kona condo on Airbnb or Vrbo?.

Last updated: October 2026.