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?”
One group is proposing the state convert 50,000 vacation rentals to long-term housing.
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.
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.
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?
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.
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?
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.
Anyone that’s ever has statistics class? If you have you know that numbers can be manipulated really easy.
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.
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.
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.
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.
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…
I have a novel idea why not build more housing?
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.
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.
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….
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.
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.
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.
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😡😡
I think Hawaii wants the tourists ‘ money but not the tourists themselves. Grow up!
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.
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….
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.
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.
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
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?
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
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.
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