Big Island Lava Zones and Their Impact on Real Estate

The Big Island of Hawaii is not just a tropical paradise but a dynamic and ever-changing landmass, shaped by volcanic activity over millions of years. The presence of active volcanoes like Mauna Loa and Kilauea has necessitated the creation of lava zones, a critical classification system that impacts every aspect of land ownership, real estate, and development. Whether you’re looking to invest in property, build a home, or even secure financing, understanding lava zones is crucial. This blog will explore the origins of lava zones, their ongoing relevance, and how they directly affect land pricing, lending, and real estate on the Big Island.

Hawaii’s Volcanoes: An Overview

Hawaii is home to some of the most active and historically significant volcanoes in the world. The islands themselves were formed by volcanic activity, and while some of the volcanoes are dormant, others are still very much alive. Let’s look at the main volcanoes you’ll find across the islands:

1. Big Island (Hawaii Island):

The Big Island is the youngest of the Hawaiian Islands and the most volcanically active. It has five main volcanoes:

• Kilauea: Kilauea is probably the most famous of all Hawaiian volcanoes. It’s one of the most active volcanoes on Earth and has been erupting frequently since 1983, though its last major eruption was in 2018. It’s located on the southeastern side of the Big Island and is a major attraction at Hawaii Volcanoes National Park.
• Mauna Loa: This massive volcano is the largest on the planet by volume. It covers more than half of the Big Island and has erupted 33 times since 1843. Its last eruption was in 1984, but it’s considered active and closely monitored.
• Hualalai: Located on the west side of the Big Island, Hualalai is less active but still poses a threat. The last time it erupted was in 1801, and experts predict it will erupt again in the future.
• Mauna Kea: Mauna Kea is a dormant volcano, but it’s a huge one! It’s actually the tallest mountain in the world when measured from its base on the ocean floor. While Mauna Kea hasn’t erupted in over 4,000 years, it’s still classified as a dormant rather than an extinct volcano.
• Kohala: This is the oldest of the five volcanoes and is considered extinct. It’s located in the northern part of the Big Island and doesn’t pose any risk.

2. Maui:

Maui is home to Haleakalā, a dormant volcano that makes up about 75% of the island. Its summit is a popular spot for sunrise views, and the surrounding park is a stunning example of volcanic landscapes.

3. Oahu:

Oahu’s famous landmarks, Diamond Head and Koko Head, are actually volcanic tuff cones. They haven’t erupted in hundreds of thousands of years and are considered extinct. While you won’t see any lava here, they’re still an impressive reminder of the island’s volcanic past.

4. Kauai:

Kauai is the oldest of the main Hawaiian Islands, and its volcanoes, such as Mount Waialeale, have been dormant for millions of years. Kauai’s rugged terrain and dramatic cliffs are the result of millions of years of erosion on these ancient volcanoes.

Understanding the Big Island’s Lava Zones

The concept of lava zones was established in 1974 by the United States Geological Survey (USGS) as part of a volcanic hazard mapping project. This classification system was designed to assess and categorize areas based on their potential risk of lava flow hazards. Given the Big Island’s active volcanic history and the regular eruptions of Kilauea and Mauna Loa, the need for a systematic approach to evaluating volcanic risks became apparent.

Lava zones are numbered from 1 to 9, with Zone 1 representing areas at the highest risk of volcanic activity and Zone 9 being the least vulnerable. The designation of these zones was based on historical lava flow patterns, proximity to volcanoes, and the frequency of past eruptions. The primary goal was to provide an accurate assessment tool for planning and development, allowing people to make informed decisions regarding land use and construction.

The categorization remains relevant today, not just for scientific purposes but also for practical applications in real estate and urban planning.

Zone 1: The Highest Risk

Zone 1 includes areas that are directly over or near active volcanic rift zones. These are the most dangerous regions for lava flows. The Puna District, particularly lower Puna, falls into this category. In recent years, homes and entire neighborhoods in this zone have been destroyed by lava flows. Because of the high risk, property here is difficult to insure, and financing options are limited.

Zone 2: High Risk

Like Zone 1, areas in Zone 2 are still at high risk of lava flows but may be slightly further from active rift zones. Some parts of Puna and the southern slopes of Mauna Loa fall into this category. Real estate prices here tend to be lower than in safer zones, but buyers should be prepared for the challenges of securing loans and insurance.

Zone 3: Moderate Risk

Zone 3 represents a middle ground between high-risk and low-risk areas. Properties here are not directly threatened by volcanic rift zones but could still be impacted by lava flows from more distant eruptions. Lending and insurance options are more available, making real estate here a viable option for buyers looking to balance risk and affordability.

Zone 4-6: Low to Moderate Risk

Zones 4 through 6 gradually decrease in risk as the distance from active volcanic areas increases. These zones include popular regions like North Kona, Hilo, and parts of Waimea. Real estate in these zones offers greater stability in terms of insurability and access to financing.

Zone 7-9: Lowest Risk

Zones 7 through 9 are considered the safest areas in terms of volcanic activity. These zones are located on the oldest parts of the Big Island, where volcanic activity has not occurred for thousands of years. Most of the real estate development in areas like Kohala is within these zones, where land is more expensive due to the minimal risk.

Why Are Lava Zones Important?

Even though the lava zones were created over four decades ago, they are still widely used and highly relevant for several reasons:

1. Ongoing Volcanic Activity: The Big Island’s landscape continues to be shaped by active volcanoes. Kilauea, for instance, erupted in 2018, causing significant damage to properties in lower Puna. Lava zones help residents and potential buyers understand the risks associated with living on a volcanic island.
2. Emergency Planning and Preparedness: The State of Hawaii uses lava zones as part of its emergency planning. In the event of an eruption, evacuation protocols and safety measures are influenced by these zones. They also help in risk assessment for public infrastructure like roads, schools, and hospitals.
3. Real Estate and Insurance: Most importantly, lava zones play a critical role in real estate transactions, lending, and insurance. The higher the lava zone, the greater the risk, which directly affects a property’s insurability, financing, and overall market value.

The Impact of Lava Zones on Lending and Insurance

Perhaps the most significant way lava zones influence real estate is through their effect on lending and insurance. For properties located in Zones 1 and 2, obtaining a mortgage is often a complex and challenging process. Many lenders are hesitant to finance homes in high-risk lava zones due to the potential for property destruction. When loans are available, they often come with stricter terms, higher interest rates, or larger down payments.

Insurance, too, is a major hurdle for homeowners in these zones. Most national insurance companies will not provide coverage for homes in Lava Zones 1 and 2, as the risk is deemed too great. Instead, homeowners often need to rely on the Hawaii Property Insurance Association (HPIA), which offers coverage specifically for high-risk volcanic areas. However, HPIA policies can be expensive, and coverage options are limited.

In Zones 3 and beyond, securing financing and insurance becomes easier, though premiums may still be higher compared to other parts of the island.

Effect on Real Estate Prices

Lava zones also have a direct influence on land and home prices. In general, the higher the risk of volcanic activity, the lower the price of land. For example, properties in Zone 1 can be significantly cheaper than similar properties in lower-risk zones. This price discrepancy makes buying in high-risk zones appealing to some buyers, especially those looking for affordable land or off-grid living options. However, the challenges of obtaining insurance and financing, as well as the risk of property destruction, must be carefully considered.

In contrast, real estate in Zones 7 through 9 tends to be far more expensive, as these areas are considered much safer. Buyers in these zones enjoy greater security, easier access to insurance, and fewer obstacles to securing a mortgage, making these properties highly sought after.

The Role of Lava Zones in Real Estate Investment

For real estate investors, lava zones are both a challenge and an opportunity. Some investors may be tempted to purchase low-cost land in high-risk areas with the hope that future advancements in volcanic monitoring or changes in insurance availability could increase property values. However, this is a speculative approach and comes with considerable risk.

On the other hand, investing in lower-risk areas, though more expensive, offers greater long-term stability and potential for appreciation. Properties in Zones 4 through 9 are considered safer investments, especially for those planning to develop or hold land for future resale.

FAQs

What is the purpose of lava zones on the Big Island?
Lava zones were created to assess the risk of volcanic activity in various regions of the Big Island. They help in emergency planning, real estate transactions, and insurance decisions.

How do lava zones affect real estate prices?
Properties in higher-risk lava zones (Zones 1 and 2) tend to be cheaper due to the potential for volcanic destruction, while land in lower-risk zones is more expensive but easier to insure and finance.

Can I get a mortgage for a home in Lava Zone 1?
It can be challenging to secure a mortgage for homes in Lava Zone 1, as many lenders view the risk as too high. When loans are available, they often come with stricter terms.

Is it safe to buy property in Lava Zone 2?
While it’s possible to buy property in Lava Zone 2, buyers should be aware of the risks and challenges, including difficulty obtaining insurance and financing.

Why are homes in Lava Zone 9 more expensive?
Homes in Lava Zone 9 are more expensive because they are in the safest areas in terms of volcanic activity, making them highly desirable and easier to insure.

What insurance options are available for homes in high-risk lava zones?
Homeowners in high-risk zones often need to rely on specialized insurance providers like the Hawaii Property Insurance Association (HPIA), but policies can be expensive and limited.

Living near Hawaii’s volcanoes offers a mix of thrill, beauty, and risk. It’s not for everyone, but for those who love the power of nature and don’t mind the challenges, it can be incredibly rewarding. Understanding the lava zones, the location of the volcanoes, and the lifestyle around them is key to making the best choice for your family and future. So, whether you’re looking to buy, rent, or just curious, I hope this gave you a good sense of what to expect. Aloha! 🌋

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