The ongoing shift in the Hawaii vacation rental landscape continues to provoke unprecedented debate, as the latest Hawaii Tourism Authority (HTA) report shows a further slide in rental demand. This trend mirrors what we see in other parts of the world and raises questions about the future of vacation rentals and our housing market.
Behind the latest HTA numbers, residents and travelers continue weighing in with personal stories and sharp insights that paint a more complex picture in the islands.
What residents and travelers are saying about vacation rentals.
Reader feedback from prior Beat of Hawaii articles on this topic offers a glimpse into the deeper tensions surrounding Hawaii vacation rentals.
One resident, Carla H., summed up the frustration many feel: “Vacation rentals have turned my once-quiet neighborhood into a revolving door of strangers. It’s not just noise—it’s the complete loss of community.”
Several others echoed her sentiment, noting how vacation rentals have impacted housing availability and affordability.
On the flip side, travelers shared different perspectives. Jack R., a frequent visitor, said, “Vacation rentals provide a unique way to experience the islands. Hotels can’t offer the same sense of immersion in local culture. I’d hate to see them disappear entirely.”
Meanwhile, others, like Megan S., pointed out the growing financial burden of staying in vacation rentals: “The fees are insane. By the time you add cleaning and service fees, you might as well stay at a luxury hotel.”
For some, the issue is more subtle. Michael T., a property owner, shared his concerns about regulatory uncertainty: “I’ve always followed the rules, but the constant threat of new restrictions makes it hard to plan. Are we trying to kill tourism here?”
Hawaii aligning with global trends.
Hawaii’s evolving relationship with vacation rentals is similar to regulatory movements in cities worldwide. In New York City, the 2023 implementation of Local Law 18 sharply reduced the number of short-term rentals, with listings dropping 83% yearly. While this curbed illegal rentals and boosted hotel revenues, it did little to improve housing affordability, and a black market for rentals quickly emerged.
In Europe, cities like Rome and Barcelona have enacted sweeping restrictions to combat over-tourism and soaring rents. Rome’s mayor recently warned that “entire blocks of the center are turning into B&Bs,” highlighting the loss of residential character in the historic city.
Meanwhile, cities like Málaga have banned new short-term rentals in tourist-heavy neighborhoods. Amsterdam now imposes steep fines for unregistered rentals, aiming to restore a balance between tourism and local living. Airbnb, however, has pushed back against these measures, claiming short-term rentals contribute minimally to housing crises and tourism saturation.
While not yet as restrictive, Hawaii appears to be heading in a similar direction. The state’s ongoing discussions about stricter regulations reflect the same balancing act between preserving local housing and sustaining tourism revenue.
What the latest HTA data reveals.
The latest Hawaii Tourism Authority report for November 2024 highlights an ongoing shift in the vacation rental market. Compared to November 2019, demand for vacation rentals plunged 38.3%, and occupancy dropped by a striking 20.2 percentage points. These figures reveal a long-term decline beyond seasonal or pandemic-related disruptions.
While the supply of unit nights increased slightly in 2024 compared to 2023, it remains well below pre-pandemic levels. Occupancy also dipped to 48.4% statewide, and the average daily rate climbed 6.5% to $313. Rising costs are a recurring theme, with today’s vacation rentals commanding nearly 50% higher rates than in 2019, even as demand and occupancy continue to lag.
Adding to this complexity is a growing sense of uncertainty among visitors.
Many travelers are now questioning whether vacation rentals will remain a reliable option in Hawaii. “Will they still be legal next year?” one frequent visitor wondered in a prior Beat of Hawaii discussion.
Another noted, “It feels like Hawaii doesn’t want us staying in rentals anymore, but hotels don’t always work for families.”
Such doubts, coupled with rising costs, appear set to dampen enthusiasm for Hawaii vacation rentals further and steer visitors toward alternative lodging options—or in some cases, to other destinations altogether.
What’s next for Hawaii?
As Hawaii grapples with these trends, several questions remain unanswered. Will the state and counties continue adopting more aggressive regulations, following the examples of NYC and European cities? How can Hawaii balance the needs of residents, who demand affordable housing, with those of travelers seeking unique experiences?
Reader comments suggest that solutions will require compromise. As one commenter, Sarah P., noted, “We need smart regulations that protect residents without punishing responsible hosts. It’s not all or nothing.”
For now, the future of Hawaii vacation rentals remains uncertain. However, it is clear that the debate—and its implications for island tourism, housing, and local communities—is far from over.
Please continue to share your comments with us, the HTA, and the Hawaii travel industry who are reading.
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Rates up 50% since 2019 while occupancy lags? I wonder if there is a correlation? I love Hawaii, but it is just too expensive to travel and stay there now.
Of course Hawaiians should decide how these things are handled. Not seeing much Aloha spirit here. Not to worry, it’s a big world with lots of welcoming vibes. Sad that things have come to this.
As a frequent traveler to Hawaii (monthly) I’ve had to absorb the exorbitant “resort” fees. In over ten years, I’ve never used one item being charged for. Maybe the hotels could figure out a way to make the fees more equitable.
Short term rentals need to be outright banned throughout Hawaii in any non-resort zoned areas. Get the speculative mini-hotels out of residential neighborhoods forever.
As I’ve said many times, they are being banned all across the globe.
Just in California they have been banned in:
– Anaheim
– Belvedere
– Carmel
– Danville
– Del Mar
– Hermosa Beach
– Huntington Beach
– Larkspur
– Manhattan Beach
– Ojai
– Rancho Palos Verdes
– Sausalito
– Tiburon
– West Hollywood
On Maui in particular, I think it is extremely important to distinguish between tourist rental condos like Honua Kai and Kaanapali Alii on one hand and rentals in a residential neighborhood on the other. There is a vast difference in the two but Maui does nothing to highlight that distinction. In fact, they continue to blur the lines by including purpose-built rental condos (like Kapalua Bay Villas) in the discussion. Draw the lines in the correct place and educate everyone and there would be no disputes.
My wife and I have been traveling to Hawaii for 30+ years and dearly love the islands, the people and culture. We are not wealthy and try to stay frugally. A hotel is generally over $1000/day when one includes fees, taxes, parking and meals. A STR costs us half of that because we cook most of our meals.
The hotel industry would love to severely limit/reduce STR’s because it eats into their profits, and limits their ability to raise prices even further. Affordable housing is a complex global problem that is not caused by STR’s, but is a myth pushed by the hotel industry and politicians to limit competition and enrich themselves. The lack of affordable housing is largely due to hedge funds, private equity and billionaires buying up housing stock causing prices to soar. I feel like Hawaiian politicians are using the myth that lack of affordable housing is due to STR’s to appease the hotel industry and uninformed constituents, and make Hawaii a destination only for the wealthy. Sad!
Hotels in Hawaii that have a kitchen with a washer and dryer is where I stayed. Prices are going up too much though. Cancun has nice weather and so does the Bahamas and the Virgin Islands year round and the airfare is much cheaper. It’s not that difficult to see why the numbers are dropping.
Maui and Cancun shouldn’t be mentioned in same sentence. It’s a bit like saying a Nissan Sentra is a better choice than a Ferrari because its cheaper.
Great point! Overly restricted vacation rentals might well kill the goose that laid the golden egg. Why would anyone want to visit someplace where they don’t feel welcome and pay outrageous prices?
Cancun might be a bad example, too Disneyland. But there are many lovely places that are affordable, not overtouristed, and make you feel welcome.
Demand may be down but the daily room rates at the condo where
we like to stay in Kauai are just as high as they were last year.
East Coast Traveler here.
My preferred accommodation whether in Europe, Caribbean, Hawaii, or Continental US is usually AirBnB style. Hotels can be isolating, not allowing me to get to know the local culture, customs, and rhythm of life. Plus they can be exorbitant expensive for a family. Plus, they are usually clustered around overtouristed areas, places that I avoid.
Hawaiians certainly have the right to decide how to handle tourism on their islands, but I will not be visiting if I feel unwelcome. Or if securing accommodations is confusing, unpredictable, or restrictive. There are many other destinations where I feel the Aloha spirit, I will be spending my money there.
So you don’t like staying in over-touristed resort areas, but you are OK with tourists filling up residential neighborhoods where people live and have to go to jobs, etc.?
Nobody wants tourists coming and going from their neighborhoods at all hours.
You are not a “local” when you stay in a neighborhood, you are still a tourist………a tourist taking up housing meant for residents.
Fading Aloha…. How about the 20-25% increase in restaurant prices from last April to the beginning of December? My wife and I were stunned. $50+ for a marginal entree and average service. When you mention it all you get is shake basically telling you to deal with it. Certainly makes the Costco rotisserie chicken a much better option going forward. It’s getting harder and harder to justify visiting Hawaii.
We are booked to come there in February now I’m starting to wonder if we should cancel we are staying in a timeshare that we own but I’m afraid the people don’t want us there I don’t want to hurt your communities I want to share in the joy of what Hawaii has to offer and don’t forget tourists coming to your Island and buying so many things like eating and trinkets and spending so much of our money to help your economy we are very unsettled about you not wanting us I understand totally how you feel but you have to look at it from our point of view as well if you don’t want us there just tell us we won’t come. don’t start playing games it’s a lot of money to come to Hawaii. My husband and I have saved 30 years to come first class on everything on our 30th wedding anniversary so are we going to be safe I don’t know and welcomed or do you want us to stay home please somebody answer this question God bless you all.
You’re fine and totally welcome to come. Lots of folks appreciate that you come and stay and enjoy your time. We all have either some family and/or friends that work in tourism. If you are going to Maui be respectful of Lahaina and the efforts trying to rebuild there. No matter what island you go to just respect the fact that all of us who live here are not on vacation. Be patient, don’t tailgate or rush drive through towns. Seek out tours and experiences that are locally owned and operated. Find farmers markets and local craft shops and support local artisans and craftsmen. Hold the door for older aunty or uncle and let them go first. Smile and say Hi. Be respectful and you will be just fine. 🤙
At over $300 a night, and lots of places are way more than that,coupled with exhorbadent rental car rates,im out. I used to go there quite often before 2020, have not been there since. No plans to return either, a lot more inexpensive warm places to go.
A week ago I was looking at a nonstop flight from San Jose to Kona on Alaska in April and it seems to have disappeared. Can’t find anything on Alaska Airlines about whether the flight is canceled or not and it appears to exist Saturday, April 12 through Saturday, April 19 but not on Sunday or Monday. Please advise.
Yes, I was going to book that non-stop flight as well, but it vanished off the face of the earth. In addition, the Hawaiian Air flight that I booked from Kona to San Jose was cancelled an hour after I booked it. Some weird stuff going on with the Alaska/Hawaiian collaboration.
So weird it’s just happening quietly. Have you found any reasonably priced nonstop flights to and from San Jose and Kona? Hopefully Rob & Jeff know more about what’s going on!?
You’re getting your wish, the anti-tourist vibe ( which is being pushed by all sorts of mechanisms, from locals to pricing) is being felt and heard – loud and clear. If it continues, it will be interesting to see how Hawaii changes from a hospitality economy to?
Many other places to visit. Long time visitor to Kauai, Maui, and Hawaii.
I’ll be honest, looking at Madeira, Portugal, other South Pacific, Islands, the Caribbean, Greece, and many more.
Mahalo
Love. Getting your wish. The practically begged people to stay away. It was ridiculous. These are the results! Go locals. Now what tricks do you have next?
I’m torn as a Hawaii resident. I understand the housing problem, but vacation rentals help me afford to keep my home. Without that income, I’d be in trouble.
If you can’t afford your home without speculating in the housing market (counting on tourism which has huge ups and downs), maybe you shouldn’t have bought the home.
All investments are not guaranteed a return.
If Hawaii bans vacation rentals, it will lose visitors like me who need family-friendly options that hotels don’t offer.
Try timeshares – they offer apartment/condo like accommodations for a fraction of the price. You get multiple beds and a full kitchen to accommodate a family…and save hugely on dining out. My family has traveled that way for years and loves it.
I stayed in a rental last summer on Maui and had a wonderful experience. The host was welcoming, and it felt like I was living like a resident for a week.
You were not a resident, you were a tourist.
Did you go to a job, do chores, do all the things that residents do?
Funny how people think by staying in a residential neighborhood they are somehow “locals” and “helping”.
Hawaii is pricing itself out of reach. Between the high fees for rentals and the overall cost, I’m definitely thinking of vacationing elsewhere next year.
Tourists don’t understand what it’s like for residents. These rentals have driven up housing prices to the point where locals can’t afford to live here anymore.
Your comment should be addressed to whomever it doing the renting.
That’s who is making choices to disrupt residential neighborhoods.
Most of the housing speculators are off-island owners trying to make money. They will dump their speculative investments whenever they begin taking a loss and realize that the housing market has already rolled over.
Would love to see the market prices go back to at least 2018 prices. In some areas such as Princeville, few single family homes are under 2 million and about 50% are not owner occupied (STV). Been looking to purchase a primary home but nothing in my.price range of about 1.6 million max.
I own a rental and follow all the rules, but I’m constantly stressed about whether the laws will change again. It’s hard to plan for the future.
Hmmmmm, so you note that the City of NY has been clamping down on STRs significantly, and that hotels are receiving the benefits of this action with increased business. Golly, could the Hawaii hotel corps be helping out the distressed legislators meager life-styles in anticipation of even more patronage/profits with their legislated restrictions/permit denials on HI STRs???
I empathize with the neighborhoods with numerous STRs. Those STRs can become ‘party central’ for youngsters getting the max out of there short time in Paradise, making life miserable for the locals. Contacting the landlord or property manager about the problem, if you can find him/her, might work, and I have not problem with calling the cops too. The issue is, they shouldn’t Have to!
Institutional investors who gobbled up assets when prices were low and then took advantage once Covid and the associated work from home drove up prices. It’s the same as other areas of the country. But if people really think those who clean rooms or wait tables for a living can or should be able to care for themselves and or a family on minimum wage, that’s not realistic. Not in our capitalist society. While this is one outcome of capitalism, there are many, many more which have improved the world in ways that no other system has or could. That doesn’t change the fact that people making minimum wage can’t afford a median priced home. It’s expected. Once the hotels can’t get people to stay to perform the menial tasks that hotels require to service their customers, they’ll figure out what they need in order to stay in business. But somehow they keep getting people to work for a pittance. It is what it is.
Hawaii is killing itself with these high prices.
The fees are ridiculous. I used to prefer vacation rentals, but now I’m back to staying at hotels. At least they’re more upfront about costs.
As a visitor, I love vacation rentals because they offer a unique way to experience Hawaii. Hotels just don’t have the same charm.
My husband and I have been visiting Kauai once or twice a year for 30+ years and have always stayed in a “legal” vacation rental. As a matter of fact, we owned one ourselves a number of years ago. For anyone who stays on island for more than one week, it makes no financial sense to stay in a hotel where you have to eat all meals out. Plus paying the exorbitant daily resort and parking fees. We refuse to pay resort fees since we don’t use any of the “resort” amenities, whatever they are, and the beach is free. The only reason I see for the vacation rental demand waning is because of the uncertainty about doing away with vacation rentals. Who wants to be in a position to have to scramble to find a new place to stay when you’ve made your vacation plans months in advance?
Excellent news. Local zoning and land use regulations exist for a reason. Hotels and properly permitted short term rentals ensure the best experience for both guests and residents. Thank you to our visitors who are respecting our laws and community.
It’s clear what is going on — a 50% rise in rates since 2019, turning an already expensive location entirely unaffordable.
In the same amount of time, I can fly to Europe, which is much more affordable, or closer to home, the Mexican Riviera, with true tropical weather and the locals don’t constantly complain about tourists.
I love Hawaii, but can’t afford to travel there anymore.
I understand residents feeling like there is loss of community with an abundance of STR’s but there is no way eliminating them is going to make housing affordable.
No, it won’t make housing more affordable. Anyone who thinks so needs to swim back to the reality of the HI housing market. That market is the barrier to home ownership. Houses sell for what the market will bare, and the average Hawaiian family/single person is not likely going to be able to rent, much less buy those STRs returning to the housing availability market. Just look at SoCal; There are homes out their on the market, but how many have a spare $200K-$400K+ lying around for a down payment, with mid-high mortgage payments each month to deal with?
I agree with the person who commented on STR’S in private homes in established communities. As a 22 year owner on the Big Island, in a property that has been used for STVR’S, I’m not really worried about continued rental revenues. Actually our rental activity is almost 45% higher since we did an extensive remodel. Our property management is based on Island and is available 24/365 if problems arise. However, I do know a few people who are renting and not registered with the county. This should not be allowed.
Vacation rentals have taken over my neighborhood. It’s heartbreaking to see families pushed out because investors want to turn every home into a short-term rental.
What families are “pushed out’ of your neighborhood?
Are they permanent renters who are renting in a neighborhood of homeowners?
I have this question as well. All of the islands have either severely limited or banned short-term rentals in neighborhoods altogether. If they have taken over your neighborhood, many if not all of them are probably illegal and you should report them. The process for that has changed recently as well, in that you can report them without giving any of your identifying information.
Please report them!
Good day~. Is the last statement ‘the debate is over’ intended? Seems the debate is NOT over as it continues to be an important issue. May be I read it wrong.
As a VR owner (single 2 bedroom) I can say that Nov & Dec whimpered out, however, Jan-Mar is super strong. Cheers
Hi Mark.
Thanks for catching that! It’s fixed.
Aloha.
This plummet in demand should not be surprising. As twice a year visitors to Maui from Vancouver, the crazy prices (worse with our 40%+ exchange rates), uncertainties over legality of available condo units, and anti tourist vibe from all levels of government, have caused us to go to Thailand this January instead. That’s around $25k USD not spent in Maui. Multiply the likely dollars going elsewhere by the visitors not coming. Very big hit to the local economy and jobs. Unbelievably bad and reckless government policy.
Hawaiʻi’s leadership remains overly reliant on tourism while failing to create alternative income streams. Short-term rental (STR) owners are unfairly targeted to bolster overpriced hotels, ignoring the ripple effect on small businesses that depend on STRs for survival. This shortsighted approach harms local livelihoods & neglects economic diversification.
New hotel developments continue to occupy valuable land better suited for housing, worsening the housing crisis. Bureaucratic red tape further stalls responsible building efforts, driving up costs & delays.
Local leadership often claims to act in the community’s best interest, yet their policies undermine progress. STR owners contribute significant tax revenue, but these funds are poorly utilized, and small businesses are left unsupported. True kuleana requires embracing sustainable strategies that prioritize economic diversity, accessible housing, & a balanced approach to growth.
The time for meaningful action is now!
What other industries besides tourism would be appropriate for Hawaii in 2024?
Certainly not agriculture.
I remember maybe 20 years ago, Hawaii was going to be the center of the wind and energy universe.
That seemed to make sense at the time since they have plenty of both, high electric prices because of the cost of oil generated power, and a ready commercial market.
That went over with a resounding thud for the same reasons all the others always do: High costs for everything, partly due to government regulations, partly do to geography.
In a few years, there’ll be another “study” about “How can we revitalize our tourist industry?”
These types of trends ebb and flow. I don’t think one can say with certainty that a certain trend will continue, and that a trend portends some sort of ominous, permanent prophesy of things to come.
In fact, trends often reverse.
For instance, for the first time in a long while, Maui’s vacation rental conditions are starting to look brighter, as reported in MauiNow today, and as reported by many of the vacation rental owners I know:
mauinow.com/2024/12/27/maui-county-leads-state-in-vacation-rental-performance-in-november/
I have every faith that eventually some sort of equilibrium will be achieved. There will always be demand for vacation rentals in Hawaii, as much as the hotels might hate it.
The purchase of our time share on Kauai looks like a good idea now!
Indeed it does. So far the government has left time-shares alone. I wonder when that will change?