This post reflects only the writer’s personal opinion and is not intended as legal or investment advice.
Key Data
- In October 2025, the median sale price in Zip Code 96722 (Princeville, HI) was about US$1.10 million, down about 0.9 % year-over-year. (Redfin)
- For the broader Princeville area, the average home value was around US$1.396 million as of late 2025, down 4.0 % over the prior year. (Zillow)
- A data-source notes that between 2022 and 2023 the median property value in Princeville rose from about US$992,600 to about US$1.22 million (about +22.4 %). (Data USA)
- In comparison, from 2022 to 2024 the average house value in the County of Kauai rose 16.7%
- For October 2025, the county average home value is reported via Zillow at $998,463, down 2.8% over the prior year. Zillow. Also for October 2025, the average listing-price change (county) shows a year-over-year drop of 5.13%. (FRED). Another source reports for October 2025 the median sale price for single-family homes in Kauai was $1,595,000, up 33% compared to October 2024. (Locations Hawaii). This was likely because a few expensive properties sold in October 2025 versus October 2024.
What Does this Mean?
These numbers can always be debated, especially in a relatively small real estate market such as Kauai, but the trend for Princeville may be on a downtrend. This is taking place at a time when mortgage interest rates are dropping, when we would expect house values to go up (because affordability increases when mortgage rates drop.) One possible reason for the Princeville real estate market slide may be the impact of a recent lawsuit between the Mull/White defendant and Starwood Capital Group (See below.) We will update this post in the coming months to show how real estate statistics change.
What’s the Mull/White- Starwood Capital Group lawsuit?
The Mull/White (homeowners) lawsuit (Mull & White v. SOF-XI Kauai PV Golf, L.P. – 5CCV-21-0000063) challenges Starwood’s plan to develop parts of the Makai Princeville golf course after 2026. The homeowners argue that long-standing land-use rules and safety concerns, especially about disturbing old cattle burial sites, prevent Starwood from building housing there. On June 14, 2025, the court ruled that the golf-course Dedication does not end in 2026 (The final judgment in favor of the plaintiffs was signed on August 6, 2025 by Kathleen Watanabe) and instead remains in force because it is subject to the automatic five-year renewal provisions of the Princeville CC&Rs. The judge also found that Starwood may not redevelop the Woods Course for housing or other non-golf uses, and issued an injunction blocking any ground-disturbing activity without approved testing and oversight.
The ruling effectively protects the area and places strict limits on future development until the community votes otherwise. Starwood (SOF-XI Kauai PV Golf, L.P.) filed a Notice of Appeal on September 5, 2025 in the Hawai‘i Intermediate Court of Appeals (ICA) as CAAP-25-0000609. The appeal is likely to be fully briefed by mid-2026, with oral arguments (if granted) occurring in late 2026, and a written decision issued several months afterward, likely in 2027.
What are the Likely Impacts of the Mull/White suit on Princeville Property Values?
The Mull/White lawsuit against Starwood has likely direct and indirect effects on how people think about the future of housing in Princeville. The case deals with two major issues:
- Whether the golf course land can be developed after 2026, and
- Whether disturbing the land could release buried anthrax spores from events more than 100 years ago.
Market Confidence and Perceived Stability
Princeville buyers want a clear and predictable future, and a long legal fight between homeowners and a major landowner makes people unsure about what will happen next. When potential buyers read about lawsuits, land-use arguments, CC&Rs, or even possible health concerns, many hesitate or expect lower prices. This uncertainty grows the longer the dispute continues, and it affects how confident people feel about investing in the area. As a result, home prices may slow down or level off until the case is settled and the future of the land becomes easier to understand.
Impact on Future Development Rights
Princeville’s long-term housing value depends on the idea that it will remain a well-managed planned community with protected open spaces and limited new building. The Mull/White lawsuit challenges what development can happen after 2026. If Starwood wins, more construction could be allowed, increasing the number of homes. If the Mulls/White win the appeal, development may stay limited, likely keeping the Woods course undeveloped open.
Princeville was originally zoned as an “urban” area to support a planned community with homes, resorts, and shared amenities surrounded by attractive open areas. The open space idea was tied to views, recreation, and natural beauty accessible outside of Princeville to all. The Woods Course, however, is not especially scenic. It is heavily altered, and has limited recreational or environmental value. Because of this, some people argue that calling the Woods Course “open space” does not fit the original goals for Princeville, since it does not provide the type of meaningful open area that supports the community’s character. In this view, treating the Woods Course as protected open space may work against the planned community objectives by freezing land in a form that was never intended to serve long-term residents or enhance the experience of living in Princeville.
In Summary…
The ongoing appeal of the lawsuit creates uncertainty, which is one of the strongest short-term pressures on real estate values. Buyers tend to hesitate when they sense unresolved legal risk, and some may delay purchases or negotiate harder on price until the outcome is clear. This “wait-and-see” behavior can soften values temporarily, even if the long-term fundamentals remain strong. The issue is not the eventual ruling itself, but the uncertainty surrounding it.
At the same time, there is a broader question about whether the Woods Course should be treated as meaningful open space within Princeville’s original planned-community vision. The area is heavily altered and offers limited scenic or recreational value, so freezing it in place may not strengthen the community’s long-term appeal. Some argue that calling it “protected open space” goes against the original planning goals, which centered on high-quality views, recreation, and attractive shared environments. If residents and buyers view the land as underutilized, perceptions of stagnation could dampen value growth.
If the Woods Course were instead redeveloped with high-value homes, the effect on overall prices would likely be positive. New luxury construction raises the community’s price ceiling and establishes stronger value benchmarks. Once the land is built out, Princeville becomes more scarce—an important driver of long-term appreciation in resort markets.
The appeal creates short-term drag, but a clear end to litigation plus a strong, well-designed plan would likely strengthen confidence and support community-wide appreciation. Conversely, ongoing uncertainty or a poorly communicated vision could hold back the market for a while. Over the long term, certainty and high-quality use of the Woods Course land are the conditions most likely to raise values throughout Princeville.
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2 responses to “Building Princeville: From Ranch Land to Resort Community”
This history is fascinating, but it highlights a significant problem. Princeville was Hawaii’s first planned community, and the early rules and covenants were fairly weak in my view. The Makai golf course is protected by an agreement that expires soon.
[…] its early design in the 1970s to today’s neighborhoods, Princeville has been guided by a plan, and founding […]