Hawaii Vacation Rentals

Is Hawaii Saying Goodbye to Vacation Rentals?

One group is proposing the state convert 50,000 vacation rentals to long-term housing.

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144 thoughts on “Is Hawaii Saying Goodbye to Vacation Rentals?”

  1. Arriving on Maui today for a 3 week stay that sadly will be my last if these changes go through. Middle class Americans already can’t afford hotel rates and certainly won’t be able to once the lack of competition allows them to raise them further.
    It’s clear to me that a certain segment of Hawaiian residents don’t want people like me to enjoy their paradise. I’m grateful for all the gracious people we have met and the times we have enjoyed there in our previous visits.

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  2. You work hard, buy a property for your future and the state tells you what you can and can’t do with it. You can surround that with all the fluff you want, but that’s not right. Green is in pockets of of the hotels Industry.

    36
  3. If the short term rental market is killed no non local owner will sell to locals who cannot afford to pay. They will sell to anyone (local or non local) who can afford to pay and afford to live in Hawaii. The short term rental market can dry up to the benefit of the hotels and their high prices. The secondary tourism small businesses will suffer. I don’t have an economics degree but this seems pretty simple. What has happened to the massive amounts of money that were donated after the fire? Can’t that be used to build housing? Also, why doesn’t the government use money that it already has to build affordable housing?

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  4. After you get rid of the tourists, how will your residents feed themselves? One of the lessons of Covid is that Hawaii will turn into a poverty ghetto when the tourists leave.

    16
  5. Aloha! One bit in your report stood out to me. “27% of short-term rental owners own 20 or more units.” Personally, I believe that’s a bigger problem than us folks with I believe that’s a bigger issue. Twenty or more units? Your thoughts?

    8
    1. I suspect they have conflated management agencies hosting individual owners units with actual owners. The statistics from eg Airbnb show “hosts” not owners per se, so if that is where the 27% comes from, it is highly inaccurate.

      9
      1. I agree that “27% of short-term rental owners own 20 or more units.” is a gross missrepresentation of the actual facts. I have been in STR and long term rental business
        on Maui and Oahu for 50 years and have never crossed paths with any organization that legally owned 20 or more STR units. I too believe they are counting rental agencies as owners to help their cause (hotel owners).
        It is sad to see such missmanagement and corruption.

        4
  6. Going after short term rentals won’t solve the problem. The U of H study says 4-6% drop in price and 2% drop in rents. Big deal. Meanwhile tourists don’t come and there are no jobs to pay rent or a mortgage. The hotel lobby has the Governor in its pocket it would seem. Campaign contributions and lobbying perhaps? Lots of owners live in Maui in winter and rent from Mar-Oct and they won’t sell their homes they just won’t rent and Hawaii looses tourist $ which accounts for 80% of the economic activity here.

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    1. Easy solution: time to unleash the shackles on workers and embrace reforms like eliminating the Hawaii income tax and the locals will instantly have a greater capacity to invest and afford living. Several states do this already and property taxes don’t have to be high. But the politicians love class warfare so they’ll fight to keep income taxes for power.

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  7. The intention of financially shutting down family vacations to Hawaii has long been a goal of Mr Green.
    Now with the support of old buddies like Mufi, he wants to push something through. Does it matter that every vacation rental had to go through a previous process of contacting all neighbors in writing, paying to register every year,
    and follow all the new rules including paying high taxes. Those that remain deserve some grandfathering in.
    If all that remains are expensive hotels , that Mr Green fully expects can double their rates with no competition, it sends a clear message to tourists to stay away from Hawaii.
    Of course all small businesses will be shuttered. None of this matters to Josh Green.

    26
    1. Not sure what island asks every vacation rental to contact all neighbors in writing or even paying to register every year. On Oahu, there are no Permits given out and they are definitely not asking the neighbors what they think. I have 8 in my neighborhood and so far, none of them follow the current law (30 day rental). Maybe it’s better on other island but definitely not on Oahu. There is little enforcement and my neighborhood has a constant flow of tourists. It’s not really a neighborhood anymore, it’s more like 8 mini motels who don’t care about the people who actually live there full time. I remember when there were no STR in neighborhoods. Those were the good old days unfortunately…

      2
    1. How dare you propose a logical and reasonable solution to the STR problem? Soon, you will expect the one billion dollars collected, as per MSNBC Business News on Jan. 26, 2024, and donated to Maui to be used for building more housing. However, the more I think about your solution, the more I think it may work.

      1
  8. I have a thought. Since tourism is the golden goose for Hawaii and the governor and hotel industry wants to take more feathers why not require out of state hotel owners and out of state STR owners provide housing stipends to their employees and local workers who support their service. That way they can actually afford to work here.

    5
  9. This is just a ploy by the hotel/motel industry who have Green in their pocket. STVR owners need to unite and hire attorneys to fight this. People will just sell and guess what…the locals can’t afford it. Let’s use the millions of tax dollars to build more places for the locals….oh, that’s right, the locals fight any new development. Duh! I’m sorry but free housing and free anything just don’t exist. Somebodies got to pay. Drive the tourists out and then they’ll be no “free” tax dollars to waste. Hawaii is one messed up place right now. Aloha is dead….

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  10. The governor is a doctor and politician, when they need an economist and realist. Lahaina Strong and the hotels are using the fire to pressure the governor for their short-term gain. But, as much as they want local ownership, locals can’t afford Honua Kai or Kaanapali Alii, even with draconian price controls.

    If they continue down this path to the end Lahaina Strong envisions, Maui’s population will be half or worse in 15 years. There will be abundant housing but no jobs. What a shame.

    15
  11. Beat of Hawaii editors:
    Is insurance money for the loss of homes flowing? Is the government going after that to get construction going?

    Seconding other commenters here: We own one (1) STR on Maui. It is legal, in a touristy area, and taxed. It is Not a big profit generator, despite having consistent occupancy. For us, it is a long term investment that allows us to take an affordable trip to Maui once a year. This isn’t some big abusive business we’re operating here.

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    1. Same here, except we come a few times each year. I’m proud that our condotel signed a deal with Red Cross shortly after the fire (renewed each month since then) to house displaced people in vacant units. I understand that it’s disruptive if they have to move around a bit when the unit owners visit, but converting our 1 bedroom condo to a long-term rental is a non-starter for us–what’s the point of owning it if we can’t visit? We bought it because we love Maui, wanted to visit more often, and eventually retire there. Long-term investment was very much secondary. If STR is banned, our decision is either to sell it or just to leave it vacant when not visiting, until we retire.

      6
  12. I live on a big island and I exist only because I can rent my home out or I stay in my small studio to make ends meet in Hawaii. If this changes my house is going up for sale, no qualms about that, I thought Josh Green was gonna be a good governor, he’s destroying the tourism in Hawaii and siding with the expensive hotel owners, soon this will only be a place for the elite to visit in their five or $600 night hotel rooms so much for the middle-class people that save all year to go to Hawaii , I’m sick by the money grab to the tourist always chilling out money, rental car taxes going up 18% Transient taxes want to go up. This is ridiculous already, people are not going to Mexico and Costa Rica, Josh Green, give your head a shake😡😡

    8
  13. We will stay at the Kaanipali Resort Hotel in April. Are stays at resorts still encouraged? I would think this helps the economy there.
    Also interested in places to learn of the Hawaiian culture.

    1
    1. Haha, you’ll get some true “culture” when you see the “protestors” camped out there on the beach right now. Trash, fires, etc. “give me free housing” is their mantra….

      9
      1. I’m 65 and worked the equivalent of two full time jobs most of my life to afford one small condo in Maui. I’m disgusted with the calls to confiscate what I sacrificed for, while the complainers sit in their free housing eating free food that taxpayers pay for.

        5
    2. The Kaanapali Resort hotel, like other large hotels, has everything you need right on the site. Several restaurants, high-end boutiques, and a beach. You are well encapsulated, won’t have to go anywhere, and the residents won’t have to look at you. You will be the perfect guest! Sequestered away where you won’t be a bother. Exactly what the government and many of the residents want. Just don’t try to venture out to explore authentic Maui.

      It kind of reminds me of my last trip to Cozumel. A collection of high-end, all-inclusive resorts where few leave the grounds. The adventurers like me walk 2 blocks in any direction and they are in abject poverty, all around them. Hawaii, indeed, is headed in that direction.

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  14. Enough of Hawaii and their government. We’ve been coming there for years and spending tons of money for the locals and the economy. All they want to do now is tax tax tax the tourist. There’s plenty of other beautiful places in the world to travel

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  15. Big hotel chains win, as was and is the government’s plan all along. Money talks and politicians are all ears. Same ‘ol.
    Vote for term limits and politician’s salaries controlled by the electors, not the government employees. How stupid are we?

    19
  16. Locals did not seem interested in these properties when they ran $300 to 600K a few years ago. What makes you think they would pay $700 to $800k now. And who owned the land before the properties were built in the first place. I think the only move for the Hawaiian government is eminent domain. That could get messy in my opinion. I feel that mismanagement from Hawaii officials has ruined a lot of lives

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  17. It’s very apparent that the State of Hawaii does not want tourism and tourist dollars. Let them shoot themselves in the foot with their stupidity. This is only going to make it harder for the average Hawaii resident to be able to afford to live in Hawaii. The rich will get richer and the poor will get poorer.

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  18. I’m sure the hotel industry would love to see STR go away….have you looked at hotel prices on Maui?
    I would suggest that the powers that be get rid of all the illegal rentals first…. but of course that would take more effort

    18
  19. I have been to all of the islands and stayed each time at a vacation rental. Usually it was a group of us that came together came together. We love vacation rentals and they are cheaper than the resorts. I will not come back if I have to stay in anything else. It’s getting harder and harder to find a reason to come to Hawaii. Maybe, that is the intent of your government officials.

    15
  20. I am sad to hear they are targeting vacation resorts and condos. We are planning to visit Hawaii for the first time in Nov 2024 and have booked with a Maui vacation condo. I see this causing a downward spiral in tourism as we do not like hotels, I like to prepare most of my own food and eat out occasionally, which hotel stays do not accommodate.
    I hope they change their mind on this matter, it offers up options for people who prefer more privacy and being able to cook their own food if they so choose.

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  21. I agree with non-residence owners being targeted, but leave the residence owners alone, especially if they only have one short term rental.

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    1. But they won’t do that. At this point all Hawaii wants is money, not tourism. They’ve already put fees on non-residents visiting beaches, this is just the next step in totally destroying Hawaii’s economy, which is tourism.

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    2. I agree that something should be done about vacation rentals that are non-compliant. But why target compliant non-resident STR owners just because they live off island? Hawaii is still part of the United States last time I checked and it’s a free country… or is it? And do they think all big hotels are owned by residents? I think not.

      4
  22. I don’t see how this addresses the housing shortage and affordability long-term. having a 2% to 6% impact on rental/homeowner costs.

    There needs to be a “big picture” look at the housing issue. (I dont Own rental properties) but if you really want to address short-term rental issues, why only non resident ownership being targeted.

    Someone who owns a vacation condo and rents it out while they arent using it doesnt seem to be the main issue. Companies/LLC’s that own 5/10/20 or more (no matter where they reside) should be targeted. Also Hawaii invited this development and profited from it. Can they legally legislate to cause property owners to lose their properties by eliminating rentals? (Maybe they can).

    10
    1. No, they can’t take a way a right that was previously explicitly bestowed. That is called “taking” and is illegal according to both the US constitution and the Hawaii constitution.

      However, they can affect public opinion. Josh Green can put the evil stamp of “Short-term Rental Evil”, people will listen, residents will rejoice, and visitors will feel too guilty to plan a trip here.

      This will have many unintended consequences. I don’t think many understand (or are too proud to admit) the widespread influence that tourism has on the islands, and that removing short-term rentals would cause a lot of pain, with a fan out affect far beyond just the tourist-related businesses.

      3
  23. The direction that the state and county governments are heading is misguided. The vast majority of short term vacation rental (STVR) owners own a single house, condominium or townhouse. The income generated from rentals supplements their ability to pay mortgages and taxes. Some envision permanently living in these units upon retirement.It is absurd that the hotels would want these people to sell their units at a massive loss. The luxury hotels would anchor low income housing sites!Why don’t the counties simply stop issuing new STVR licenses?None of this makes sense.

    13
  24. Hawaii is not alone in its quandary about affordable housing. However, let’s call it what it is: Calling for the illegal and unconstitutional seizing of private property is not a sustainable solution. First it’s out of state owners. What’s next? Seizing property owned by redheads, or people with blue eyes? Where does it stop?

    17
    1. This is discrimination against a group of Americans who worked hard and bought the dream of having a part time home in Hawaii. We are not rich enough to hold that home and not rent it as STR. What the government and these greedy takers want is simply to take what others have worked hard for. Easy to take what you want if you can get the government to do it for you. Harder to work extra hard all your life to earn it.

      3
  25. So it’s going to be okay for locals to own STR rentals, but not others.
    If 48%of STR are owned by locals but they are only targeting no locals that is wrong …. (and hope they get a major lawsuits!!)
    If they are going to make this change then it needs to be equal rules for all.
    Wouldn’t the locals want to turn STR to LTR to help out their own. Nope. They just all want to blame this problem on non locals.

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    1. Excellent points.

      Any progressive or outright ban of STRs would be hugely detrimental to many local residents that depend on income from renting their ohana or rooms in their homes. When the state recently proposed an additional lodging tax directed only at STRs (hotels were excluded), the outcry from local residents who rent out part of their property was significant.

      And if the state tries to exempt local owners from the ban, it’s just setting-up taxpayers to pay for a long, and very expensive, legal battle. Does the state have jurisdiction to say that one owner (a resident) has a right to this commerce, but another (a non-resident) doesn’t? Don’t think so…

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  26. This is disappointing to read. We stayed in NYC recently, where the hotel industry has also lobbied government to limit short-term rentals. Needless to say, hotel costs are through the roof.

    I have long dreamed of owning a unit in Maui, but I guess it just isn’t meant to be…

    3
  27. Is $820,000 considered by most to be affordable housing? I am born and raised in Hawaii, 4 generations. I left due to the high cost of living. I have use STR’s when I come to visit my ohana, because their house’s are full. To afford housing their family have to together and there is no room for us. The cost of hotels is outrageous, and when they lose the STR competition, you know they’ll jack the prices higher. This will not help the local people. I rent from people that have small, converted studios. It’s win win. I can afford it, it helps them with income. I am sure that many others do this as well. These regulations only help big corporations. Will I be able to afford visiting my loved ones then?

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  28. I would love to know how much the hotel industry lobbyists have paid the politicians to kill the short term rental industry. The extent to which the governor and the rest of these politicians are going to in order to get rid of tourists would almost be laughable if the long term consequences for the locals weren’t so devastating. Maybe one day the people of Hawaii will realize that elections have consequences but by then it will probably be too late.

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  29. Go after all the illegal STVR’s and leave all the legal permitted tax paying STVR’s alone. Vacation rentals have been around for more than 35 years when we used to find them in the back of a newspaper listed in the classified advertisements. Government has their hands in everything…So much for a free market society.

    14
  30. We just returned from 11 nights in Maui and Kauai, our 5th trip to Hawaii. The cost of staying in a 1BR rental on these islands is already extremely high. I can’t imagine how much higher it will get if STRs are fewer in number. We love Hawaii and would like to go back in a year or two, but we’re close to maxing out our travel budget. If costs go much higher, we’ll have to go elsewhere. I wonder if the governor and other parties opposing STRs have thought about the impact of less tourists on restaurants and tour providers.

    11
  31. The people of Lahaina have my deepest sympathy for their loss of relatives, friends, homes and businesses.
    Articles to do away with or limit tourism makes me sad because we have been Maui “tourists” for a number of years. Lahaina was our favorite town for shopping and dining. However, we have stayed in Makena and Kihei.
    This winter we have rented a place for three weeks large enough for our sons and their families to come over spring breaks. We want to introduce them to a place we have grown to love. It may be their only trip to Maui if rentals changes are made.
    We are from the East Coast and it is easier to get to many places but we have choosen Maui because we love being “tourists” there for a few weeks each winter. Aloha!

    7
    1. We are also from the East Coast and will be looking at destinations closer to home instead of Maui after we conclude our trip in July. St. Thomas and Aruba are closer with similar costs.

  32. More government greed. Trying to take over private property of people. Now, what is the difference of other states, or time shares etc. Nothing. This is just another government control and greed.

    14
  33. In a state that is reliant on tourism,it seems to be a stupid move to do away with str!!! Those tourists in those rental units are supporting your economy. They are providing jobs for the locals. Where would HI be without tourists????

    14
  34. As the owner of a legal, permitted, and taxed STR in Hawaii, I cannot say that I disagree with some of the concerns that the Governor, local government, and the community members have. I believe that STRs in Hawaii have escalated to an “out of control” issue. There needs to be more balance for the residents of Hawaii. I support finding ways to bring that balance.

    4
  35. “And the three men I admire most – the Father, Son, and Holy Ghost. They took the last flight for the coast, the day… Hawaii Tourism… died.”
    The locals will surely be able to enjoy the beaches and parks more freely now without the tourists, because they will have a lot more free time, and no jobs!

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    1. Exactly! I have been going to Hawaii for 40 years. I lived in Hawaii for 14 years and had to move back to the mainland because I couldn’t afford to stay once I retired. I went back in December and it was sad how things have changed since Covid; entire strip malls empty, stores and restaurants closed, so many buildings run down and in disrepair, and no one wants to work. Josh Greene destroying Hawaii’s only industry – tourism, with their greed, taxes, and stupidity.

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