The Hawaii vacation rental market faces major transformation with this controversial plan. Set to help address housing shortages, it will without doubt stir significant debate among residents, Hawaii visitors, and industry stakeholders.
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230 thoughts on “Updated: Hawaii Vacation Rental Legislation: Governor Says He’ll Sign Ban Approval”
It’s about time, the people of Hawaii need affordable housing. While we need tourists, not at the expense of us locals.
Melissa, as long as they can find people to believe what they say, they are Happy and Secure in the Knowledge that They have Supporters that are enraged at someone else. I would ask you this question: do you believe that one of many Mansions that will no longer be a Part Time STR you will be able to purchase or pay rent to live in? 🤔 Is the local or County able to rent/lease it as a single family for $875 a month with the utilities included? I think Not! Maybe make it a 2 family with shared kitchen and other common areas. 🤔 I tend to Doubt that, too.
100% Correct Ernie
Let’s be real.
I don’t know where you live Ernie S., but I have a moderate home in south King County (home to Seattle). We’d all love to have a nice home for under $1,000 a month – or $1,500 a month – or even under $2,500 a month.
Annual property taxes run $5,800 per year, insurance is slightly over $1,200 a year, power (on an annual payment plan) runs $272 a month, garbage and recycling is $55 per month, water and sewer run $45 a month. Without any maintenance cost, that’s $915 for an owner occupied home.
Then… add your mortgage payment on top of that.
AJ, thankfully my wife and I don’t have those kinds of expenses. We live in Rural Pennsylvania, at worst our monthly electric bill is $165 and that includes running a pool for 6 months and electric hot water, taxes on 7 acres and a 4 br. 2 bath, ranch with a total of 15 rooms and a 2 car attached garage is under $1300 per year, water is a well, sewer is septic. The mortgage is under $700.00 per month, the homeowners insurance is under $1250 per year. Does that help you? 🤔
How can you possibly think that any ban on short term rentals is going to lead to affordable housing. Not only is that a complete myth but it’s a total joke. I live on the islands and I own my own home, things are not magically going to get more affordable. And they are never going to build affordable housing unless you think $500,000 to start as affordable
Google “Palm Springs capped short-term rentals. Now some home prices are in free-fall”
Once the speculators start to lose money they sell like rats, and if there are not other buyers the only ones left are residents, at their local incomes…
Bill, you’re a one trick pony, repeating the same cherry picked claims about a desert golf resort.
Now try Lake Tahoe, San Diego, Santa Barbara, since you’re an expert on California real estate.
We all understand that you have an agenda, it just doesn’t stand up to scrutiny.
“Sell like rats?” How does a rat sell? Just curious, haven’t heard that expression before.
Is there a reason for the fire sale. Perhaps the owner needs cash fast.
First day on Maui went to Whole Foods to get items.
Cashier was so rude. I got the feeling of discrimination of being a tourist. Next day went to Target everyone working the floor didnt even acknowdge me. I go to Maui somewhat often. Very first time I have been treated like this. And I am not a, “Tourist.”
Regardless, the distaste of them is quite prevalent.
There still are some real nice people though.
Do not ban local residents who have 1-2 rentals. Completely ban “off island” investors. Many of our kids are being forced off island because of high prices.
That would be illegal and discriminatory. You can’t ban it for a segment of the population…Fair Housing Violation and any court with strike it down.
All of this talk about banning existing property rights is illegal and discriminatory. That doesn’t stop the government from passing laws anyway, and then waiting for the fallout.
I actually heard Josh Green admit that he knows they will get sued over this and he said he doesn’t care, and to basically “bring it on”.
We taxpayers are funding the gigantic budget earmarked to defend these lawsuits; lawsuits that they will surely lose. I don’t think many supporters of this bill realize this.
Governor Green would have to reach across the ocean and force building suppliers to reduce their prices before we could have affordable housing. There are real costs to building a home and contractors won’t build for free. Banks won’T waive the interest on mortgages. Values will drop but not enough to become affordable to the average income person. It will affect condos because that is where most STRs are but it won’t affect single family homes which is what the local families want and need.
Melissa,
Pretty much the people of America need affordable housing, mortages and rent amounts.
It is going to get worse no doubt.
Lack of housing pretty much every where do to millions and millions of increased illegal population!
I was just looking at the price of the Iao Parkside condos. They look very nice.
Ones for sale are $375000 and up for 2 and 3 bedroom.
That matches the price in the state I live in.
Good job governor. Glad to see zoning laws finally being addressed and neighborhoods occupied by neighbors again
Yes, so many of our kids are forced to move to the Mainland because housing is unaffordable. If it’s a local resident that owns 1-2 properties, let them do STRs, but no STR for investors.
the short term rentals aren’t the issue. The reality is that anywhere that is desirable to live is expensive. The statistics are everywhere. Top places to live – super expensive. Even if what are considered affordable states to live, the income needed is still huge. That is the reality of today.
Vacation rentals aren’t the problem. The real issue is the lack of owner protection in long term rentals from lowlifes that stop paying rent, won’t move out, and destroy/steal/sell owners property, and then aren’t held accountable by any authority. The truth is that the courts can reach an eviction verdict, but then there is no further action by the authorities who I’ve seen turn their heads to the issue once they see the word civil on the the eviction paperwork. They want nothing to do with it, and then the owners of these “occupied” spaces are left without income, and without support. With this kind of messed up situation it is no wonder owners have continually turned to short term rentals!
We rented an ohana a couple times from a nice couple near Kona. They started doing STR because a long term renter wrecked the place, and a judge awarded the security deposit back to the renter despite showing the damage and the expense.
Hawaii at its best, most corrupted state in 12 consecutive years
Nina: Unfortunately, Hawaii has been corrupt for decades.
Aloha!
That’s exactly why I won’t rent long-term. I’ve had terrible long-term tenants in the past. Won’t ever do it again. STR is the only way to go.
Same old tired mantra from Hawaii’s politicians. Blame, blame, blame! The county of maui estimates it will be at least 18 to 24 months before any rebuilding begins. But put it all on the (mostly middle class) owners with STR’s and they don’t have to address the real problems. Shame on them for being too cowardly to genuinely lower the cost of living (and housing) for Hawaiians. Regulate and tax, and all of the problems will just become more acute!
Yeah if local housing is the issue then why don’t they make it easier/ less expensive for locals to build their homes. Instead of threatening to destroy income from those who have worked hard to invest in their rentals. And what about all the regular local employment that these rentals support? To me it sounds like someone with a lot of money is buying the vote of these politicians, and who has that kind of money, and incentive? Could it be the huge overpriced hotel industries? 🤔
I will be coming to your beautiful Islands this June.
We have booked accomodations in Waikiki. My preference is to spend my tourist dollars with individuals . I am not a fan of the “ABC” stores AKA always bring cash”.
my family wishes to be as respectful as we can be.
Suggestions? preferences?
Thank you.
Linda
(no, unless we learn otherwise, we will not disembark
at Maui.
Why would you not disembark on Maui? The island is open, tourists are welcome and well received, and local businesses need customers. It is uninformed to stay off the island – please don’t listen to the uneducated haters.
Right, our West Maui ocean front “condo-tel” always rented… is vacant from now through October. Everyone is afraid to come to Maui. Thanks Naysayers. Zero rents for us, zero dollars for our cleaners and zero taxes for the county and state. Oh well.
Thanks for the article, BOH.
As I posted previously if passed will values on STR’s fall enough that individuals living on on Maui, cause this is what this is about, can afford the mortgage or rental fee on these properties without government assistance? Answer is no…
Also as a business owner why in the world would anybody invest in the Hawaiian islands when Hawaii’s state government determines that your profitable business is unfair to locals, so pass a law to either wipeout your investment or hand it over to locals? Not me…
I fully agree. Sometimes I wonder why I’ve invested 20 years of my life trying to build a home here, and improve my land. I had plans to build a vacation rental on my adjacent lot to help with my retirement when the time came, and now I’m watching as my retirement plan is being swept away before I ever get a chance to see it happen. Backwards a** place seems to encourage lowlifes and trash, and then wonders why there’s so many issues!? There’s gotta be another way other than hurting the hard working folks more🤷♀️
All “investments” are not guaranteed a return, yours included.
Exempt local residents who have 1-2 properties. Ban non resident investors from STRs.
unconstitutional
Thank you Basil! I totally agree. Those of us hard working, educated, responsible people will suffer for those that won’t qualify even if there was low income housing. This doesn’t encourage us to be good citizens.
We think it so wrong. If you want to go after those who have multiple units maybe restrict but those that have only one or two let them be. Some of us are just trying to help pay for our home here.
Really the only way would be through a tax mechanism. You can’t tell someone who is otherwise qualified that they can’t buy a property and then tell someone else that they can.
If you remove rentals, fewer people can come. Fewer people means fewer customers for restaurants, art, tours, guides, fishing excursions, stores, cleaners, and airlines. Might be the death blow Hawaiian airlines doesn’t need. Even if only ‘rich, wealthy, free spending tourist come, they can only eat and watch so much, and I am betting they can’t do more than they already do. I predict many unemployed, which will not make buying a home easier even if the previous rentals go back to the local housing pool.
Mahalo for keeping us posted.
I see where this bill would slide the decision to ban stvr’s to the county level. I guess areas around popular beaches where tourists vacation would be the target. Outback or non desired locations probably not. IMO making this a county decision and not the state makes any legal action brought to a specific county or city. Not the state. My question is if stay at str’s in non popular or less populated locations then how much extra traffic on the road to the popular beaches or attractions increase. Sounds like traffic Jam City. Not fun for tourists unless you pay the insane Hotel resort prices at which the wealthy could only afford.
We will not be returning to Hawaii to stay in some hotel. After the corruption scandal just being brought to the world’s attention and Green salivating to sign it so quickly. It’s begs the question is Green corrupt? I thought we lived in a free market society, but it’s business as usual in Hawaii.
You can kiss Hawaiian Airlines goodbye as they certainly won’t survive this kind of hit, even with the potential merger with Alaskan.