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Up until the late 1900s, Kailua-Kona was primarily a small fishing village; Kailua-Kona is bordered to the north by Kalaoa, to the south by Holualoa, and to the west by the Pacific Ocean from Kailua Bay in the south to Honokohau Bay in the north.

The racial makeup of the City was 38.7% White, 0.5% Black or African American, 0.5% Native American, 18.3% Asian, 13.2% Pacific Islander, 1.9% from other races, and 27.07% from two or more races.

Kona has a tropical, semi-arid climate (Köppen BSh) with warm temperatures year-round, typical of its latitude in the tropics.

It is the warmest place in the United States of America in January on average, the coolest month is February, with an average high temperature of 81.2 °F (27.3 °C), while the warmest is August, with an average high of 86.9 °F (30.5 °C).

Out of the total population, 11.9% of those under the age of 18 and 3.9% of those 65 and older were living below the poverty line.

Kailua-Kona saw an economic downturn during the 2008 national financial crisis but in the early 2010s has seen significant growth and economic development.

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