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.
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My STVR mortgage is 6,000 per month. I would need to rent my house out monthly to
long term for more than that amount to cover mortgage and property taxes. I have family on the island and my intention is to retire here (I spend 3-4 months out of the year here).
If you can’t afford your mortgage and other expenses without speculating in the housing market, then you shouldn’t have purchased the house in the first place.
It’s about time Hawaii rentals started to favor residents.
Thank you Governor Green!
To all the people on here whining about their STR’s: If STR’s are not a problem in communities, then why are small and very large jurisdictions highly restricting / or banning them altogether around the world? See New York City, cities and towns across Texas, Palm Beach California and many, many other jurisdictions, Singapore, New Zealand, on and on and on and on.
Why? Because everybody knows that people hoarding housing in Residential zones is terrible for society and that any speculation in housing should be limited to areas zoned Resort.
I have not heard Governor Green making any distinctions between STR in residential areas and those in resort areas. In fact, I would contend that the vast majority of STR condos in his threatened moratorium in West Maui are located in resort areas and were purpose-built for use as short-term rental for vacation purposes.
If he is talking about limiting rentals in residential areas, he should make that clear.
I don’t think STR’s in resort zoning are a problem, nor should be eliminated. People are welcome to speculate in these areas, in my opinion.
Big question here, I would like to know if anyone out there could tell me what affordable housing is. Or what the targeted price of a home could or should be that is affordable for the average middle class here in Hawaii.
Just because we say it is affordable doesn’t mean it can be afforded by the majority of the residents here living in Hawaii. And why property taxes is never disclosed in the so called affordable mortgage. The word it’s self is deceiving.
Tourists support the economy what would happen if there was no more tourist. Think real, think big, think long term.
The state would fall into chaos, and ruin. How much money did the state keep of COVID funds. Do you believe they really care. Follow the money, it only shifts hands.
Don’t worry about what is in the minds of what tourist are thinking. look at the homeless here, the graffiti here, and the crime. Tourist don’t didn’t make this. Tourist are like the homeless nobody wants them in their neighborhood.
But it is happening more and more. Every year the state ends up with millions of over paid taxes from the locals and don’t give it back. Look at the rail who paid that, locals did. My wife is born here, all four kids born here. Please define local for me. Nobody has been able to define local without putting ethnicity in to the answer. I am all for the Hawaiian rights and way of life and they are owed so much. But in the end the state wins, we pay, or the tourists pay. Think about it.
After 22 years here in Hawaii I have seen a lot. Let’s take a look at who wins here. By forcing out of state STR owners to sell their property the state gets huge $ taxes $ on the sale of those homes because they are not residents. Hotels will and have increased there prices dramatically, people will have to pay or leave or simply not come to Hawaii. A fee of twenty five dollars is being suggested for all visitors to Hawaii. Who will collect that fee. Housing prices will not come down if people are forced to sell their STR property Don’t be fooled. Affordable housing should be based on the average median income of the people here in Hawaii. Home values will not drop they will rise, it is the same song, different singer. Don’t get fooled
Hawaii used to be an upscale destination. That’s not a bad thing. Fewer people with greater profits and less conflict.
Aloha RodW,
You must have misunderstood my comment. I never said that people from other states should not be able to own properties here in Hawaii but rather they should not be allowed the prividge to rent their properties as a STR. As long as they rent long-term there is no problem. Just remember that certain counties in the state recently started allowing owners to apply for a STR license. This legal license is prividge and not a right!
Hi Mike,
I think I probably understood. We just have a different way of looking at these things.
I live near Joshua Tree National Pak and I think (but don’t know for sure) the county or city is putting restrictions on STRs. I don’t like it, not at all. Govts pushing around the little guy trying to make ends meet while the govt fails to do its own basic duties.
Even though we no longer have our Timeshare in Waikiki I think we will make at least one more “vaca” there. We usually come in Spring/Summer. But my best Marine buddy’s ashes will be interred at the Punchbowl in November. So, that for sure. Then, at 80, maybe never again.
Aloha!
Sad that our Governor keeps misrepresenting his facts that there are 27,000 STR’s on Maui when there are 14,000. On Oahu there’s only 2,700 or 1% of the housing stock a decreasing number since Bill 41, while vacant homes on Oahu are 19% of housing stock at 34,000 and increasing. Why doesn’t the Governor mention vacant homes being a housing crisis issue?
I personally believe that Maui has a mess on her hands.I’m fed up over my head on these issues. I have no desire to stay on a hotel/resort with protestors setting up camp and destroying the beach. Its costs thousands for a holiday there and I Am Not Paying All That Money to see protestors and have a daily ad telling me to come but bring respect. From managing an island to marketing for your resorts, it is all terrible messages. I don’t believe anyone should be forced to rent their own property under these mandates.
The direction in which the state of Hawaii is moving is a poor state all the way around. very week, there is new information directing tourism to exit the islands. I do wish those misplaced have a roof over their head. I do not understand how or why they must use str. Stating that this will help reduce tourism is a “gut less” tactic. Having tourist utiliizng hotels or resorts only, will only cause advanced growth and building…as there will always be those that will fill up the hotels/resorts no matter how much they build. Causing more damage to your poor seasides. Those that stay in resorts/hotels most often do not care about the ocean, land, and it’s people of Hawaii.
Vaca condos & some vaca homes are the only affordable way to visit HI longterm Eliminating them for housing is silly as they employ local people to service them & clean them & the people that stay in them spend money across the island & not just in resort locations where only hotels & corporations benefit from that income as opposed to small mom & pop shops/restaurants. Having visited HI the last 18yrs multiple times it’s the only place I stay as I want to experience Hawaii as if I live there not as a tourist. I’m from Boise & we have a large influx of people moving here from out of state drvn up house prices Average Joes can’t afford to buy a house so they built numerous apt complexes to address housing shortage might try that Mr Green.
“………I want to experience Hawaii as if I live there not as a tourist.”
But, you don’t live here. And you are just a tourist. This is exactly what locals hate, tourists entering residential areas designed for residents…….thinking they live on-island when they are just……tourists.
Hi Bill, good point most of the homes are in neighborhoods and so that makes perfect sense. It’s like like having renters in my neighborhood who don’t take care of the yard, generally have three or four cars and speed up and down my street. I guess it’s everywhere just the renters in my neighborhood stay a little longer which in some ways may be worse. With that said most of the condo communities are a combination of tourists and retirees and and hopefully everybody knows that those locations will always have tourists and people from out of state since literally that’s what they were built for. Hopefully new laws wouldn’t impact them. Aloha
I’m not against STR’s in areas zoned Resort. I am against STR’s in areas zoned Residential or Ag.
Those renters you dislike are the same people working in local jobs fixing your car, doing your landscaping, stocking your grocery store, reviewing building permits, running the local doctors office, etc etc etc….
What??
Some of us don’t want to visit the “octopus farm” or see a “real luau”… we visit to spend our money at locations owned by locals, enjoy a nice quiet beach, hike a beautiful trail that the Gods created for all people. Please do Not give an attitude to all tourists. We are all not the same. Mahalo 🤙🏼🌺
But you aren’t a local. You are just a tourist in the end. You are just visiting.
Don’t understand your point. When you go to Las Vegas, do people come up to you and say “You aren’t a local. You are just a tourist in the end. You are just visiting”. So I guess that means you’re not allowed to leave the casino, right? Not allowed to visit the sun-kissed desert, cactus, beautiful red rocks, etc.? I don’t think you would like being treated like that.
If you look at this from a different point of view, you’ll see how absurd it all is.
Getting rid of all STR will be a big mistake but what does make sense is make it illegal to own one unless you are a resident of the state of Hawaii. This should be the first step and if this remedy does not help then more extreme can be taken.
Mike,
So, residents of Hawaii would also be barred from buying property in the 49 other states???
Heck under your logic only residents of a state could own property in that state and they could not own property in any other state.
Doesn’t work for me. I only own a single piece of property in my home state (CA). I did own a timeshare in Waikiki but sold it to a family member 2 years ago. That’s it. But, as an American I am and should remain free to buy property wherever I can afford the price.
Hawaii is still a state. Restricting land ownership and use based on state of residence would likely not survive a constitutional challenge. Not to mention, there are not enough people on Maui that can afford $2-$3M for a condo. But, even thinking like that is troublesome. The artificial manipulation of the housing market is doomed to fail, and the us v. them mentality will just speed it along.
It’s called zoning. Everyone does it.
I would be interested to know how many of the people who are now so vocal against the STR decided to move to the islands after vacationing there. Certainly anyone who has purchased a condo or home in the last 20 or so years cannot be surprised that there are tourists all over the island. What do they expect when they buy property in a place that relies on the tourist industry for survival? The only people whom I feel have any right to complain are those of Hawaiian heritage who were born and raised there.
Well … Hawaii will get what it wants then.
We won’t be back. We stay exclusively at vacation rentals when we travel.
It will be to our detriment. We certainly wish the Hawaiians well and hold no grudge. Paradise must be maintained and Hawaiians need to be able to afford to live in their own land.
No normal person on a normal salary can afford to live in any desirable area anymore. That’s just what’s happening right now, and not only in this country, but all around the world. I just got back from Auckland, where the prices of housing starts at 1 million. The locals were bemoaning the fact that working-class people couldn’t afford to live anywhere within the city limits.
Hawaii is no different.
And by the way, I’m not sure what the actual numbers are, but it seems to me that the world is offering more and more beautiful and safe tropical destinations these days and that the Hawaii tourism industry should be awaRe that travelers have a lot more options today then they did in past years. Many of these places much cheaper.
Get ready for cost of living and taxes to raise even higher in Hawaii. Not sure how that will help any citizen there, let alone low income families.
When the government loses the money they make on str rentals and all tourism income they will have to get it from somewhere else. This is the way it goes. The government never just adjusts their numbers and lowers their budget because the money coming in dropped. They’re trying to solve one problem by making another. This will not bode well for the average Hawaiian citizen.
Hawaii, a state full of hypocrisy. A state that would not thrive without tourism. A state that wants only ‘affluent’ visitors. A state that continues to ‘bite the hand that feeds you’. A state that has got to this point because of it’s own government greed. Now the problems are all blamed on those unwelcomed tourists. A steady and strong decline in visitor spending is what’s needed to ‘wake up’ your state’s leaders.
John W,
“A steady and strong decline in visitor spending is what’s needed to ‘wake up’ your state’s leaders.”
That assumes they have an interest in doing the right thing. Not gonna happen – their political philosophy is left. They will always be left.
My wife and I have been teaching on the Big Island since 05. After years of saving and living frugally, we bought a home. We rent the ohana on Airbnb and can finally afford dance classes for our daughter, a second vehicle, and savings for retirement and college. Now, our county counsel members Ashley Kierkewitz and Heather Kimball want to take that from us with BILL 121. The bill would kill and/or place undue burden on HOSTED rentals. We’re not talking about an outside investor extracting money from our community, we’re talking about local people that live onsite. That makes clear their true intentions and who they actually serve.
I am so sorry to hear this. I understand that some Airbnb become uncontrolled chaos, so one bad apple spoils it all for the rest of us. There should be special considerations based on folks like you, who are just trying to make it on a very costly State.
The real problem for STR is they do not pay enough for politicians. The hotels have the market sewed up, with owning much of you state government. Typical move by your ruling party. Cave to the money suppliers and screw small business. How much revenue will the state lose by doing away with STR?
As for the direction your state is moving, totally owned by the Hotel cartel. You need all new elected officials next election. Make Hawaii Great Again!
I enjoyed STR more during my vacation. I feel like home. I don’t like to stay at the hotel. So boring, just a room and bathroom. They should at least let STR in tourist zone area.
Who is going to pay for everything once Hawaii runs the tourists off? Here’s an idea, become sovereign again, and Hawaii can do whatever she chooses…..but everyone knows that won’t work because Hawaii relies too heavily on the over the ocean dollar.
This is nothing but an attempt at land grab while padding the pockets of the Hotel owners.
We vacation in Kihei, Maui at a condo. We travel from Minnesota for three weeks in December. We have no desire to stay in a hotel for three weeks nor will we travel from MN to Maui for one week and stay in a hotel. The government has no business getting involved in eliminating short term rentals. Tourism sustains the island. Eliminating short term condo rentals will kill tourism not to mention Maui’s entire economy. There are plenty of other tropical island destinations that would welcome vacationers at short term rental properties.
With a few small exceptions over the course of 10 trips to six islands, we have always rented homes because it is far cheaper, roomier and allows for a more genuine experience. We’ll be in Maui in the summer, renting Air BnBs in Kihei and Hana. I checked rates for the Andaz Maui and the cheapest room for when we’ll be there is $1,173 a night plus tax. The Courtyard by Marriott near the airport? A steal at $469. We’re paying under $300 a night for a spacious one-bedroom in Kihei. Do away with short-term rentals and we’re out. Because we can’t afford to be in.
Steve. I hear you, but unfortunately that is what “they” want. Spend dollars or dont come mindset. What a world this has become. Who would ever think the most beautiful place on Earth would end up placing banners on Kaanapali beach stating No More Aloha! This is unexcusable and sad.
If you want to limit the visitors to only the wealthy that can afford the crazy hotel prices then shut down the str. Those in the hotel zone are a joke. Families can’t afford those prices and be able to enjoy what the lovely islands of Hawaii. Last time we looked at lodging prices we couldn’t afford it anymore. Sad.
The governor is being very short sighted. He may think he is helping with housing but how many houses will you need when all those who support the tourist industry lose their jobs? Cleaners, rental operations, tour vendors, servers in restaurants, tour boat operators. The list goes on. To help a few, the result will be that more are punished. Add to that, what local family can afford a median price of $800k for a house. Look who was crying for tourists when the pandemic hit…… He’s speaking to his constituents and not making sense.
And add the fact that STR property taxes are insane, plus add the taxes that are generated when you rent a STR. The government will need to cut their budgets because there will be income ge from the taxes when no one wants to visit Hawaii.
Aloha,
This is pretty interesting. When I first saw “Lahaina Strong” I thought OK, it’s a bit cliche, but I understand the need for a rallying point. Now “Lahaina Strong” seems to have morphed into some sort of radical political body that wants 50,000 rental units converted to long term housing at somebody else’s expense. The popular figure for homeless due to the fire was 6000-7000. “Lahaina Strong” wants 50,000 rental units surrendered. That’s about 4-5 units per fire victim, including children. I suppose the expectation is that the former rental units will be free as well? Hey, why not? You won’t be working, or is that the plan too? All aboard the free train…
Mahalo
As the saying goes, never let a crisis go to waste…
Bingo!
Decrease tourism and you’ll see Hawaii’s unemployment rates shoot thru the roof. One hand washes the other- then where will personal income come from and who will pay the taxes that run the state?
As visitors, a condo rental is the only way a Hawaiian vacation pencils out now. Do away with that and this middle class American family will not be able to return.
There are actually a lot of people who live and work here who have nothing to do with the tourism industry. And we sure did like it when Covid quieted it down a notch.
Keith,
They may have nothing to do with the tourism industry, however, they still depend on that industry even if indirectly. Tourism and the military are the two critical “industries” for Hawaii. All those folks receiving paychecks in those industries spend that money in businesses not directly related.
Let’s say someone is a barber or hairdresser. If other folks’ wages go down or disappear, some of their customers will use their service less frequently.
So, indirect is nearly as important as direct.
“A lot of people” is not enough to sustain an island. Most of the “locals’ that I know on the island who work in all trades, did not like the unemployment that “Covid’ brought them.
What’s going to happen when due to lack of people shopping? well cause Costco , Foodland , heck might as well close the ABC stores
I read a lot of complaints and almost no solution oriented comments. I believe the reason for that is that we are dealing with a multifactorial problem that defies resolution with any one act. 1) We have too many flights in and an aviation industry and a hotel industry that show little concern for anything besides huge profits. 2) We’ve developed a system that rewards profiteering on land investment 3) We already have severe traffic issues that will be exacerbated by more building of affordable housing. 4) Solutions needed to resolve issues such as these are fragmented in different levels of the government. Our capitalistic system favors individual and Corp. profit over community benefit. How can we coordinate our solutions?
It’s easy to blame the hotels and resorts, overlooking that local government is funding initiatives with TAT taxes-leading to the highest hotel taxes of any state. Poor use and misuse of funds is an underlying issue and has been happening over the last 10-20 years. Covid was an opportunity to solve issues. Instead there was
infighting, which continues. Vote smarter. The market will normalize to supply and demand with less government interference. If there are not enough tourists at the high prices, hotels will have to adjust rates. Where do you think all the homeless are living now? The hotels.
Affordability is difficult when government policy and over bearing environmentalist weight to policy.
Also. Note. Institutional buyers are skewing the market. Blackrock, Vanguard, State Street have deep zero cost investor funding. $29 trillion in assets to draw on. Short cash only escrow dead giveaway.
>>> What to do?
Portugal’s Maui, Maderia Island, placed a moratorium on new Vacation rentals.It has banned institutional buying.
Do same in Hawaii. And more.
Sarah Palin coined, drill.baby drill. Hawaii needs build baby build. Infrastructure and…
State and Counties, that received thousands of acres land for zero cost with the Melehe.
Lease it. Nominal $100 a month serviced lot, $25 for a condo. 200 year term. Build on this.
Sadly, there is a misconception that short term rentals don’t employ local workers. While short term rentals don’t usually include saily housekeeping services, most hotels have eliminated this service (and reduced staff accordingly). For some reason people act like hotels and resorts are locally owned. Why protect non-lical big hotel chains at the expense of locally owned lodging.
I would love to know what the long-time Islanders have to say. I have visited the islands yearly for many and Hawaii is my only happy place on the planet!! I love & respect the islands & the people!! I love Malama! It will devastate me not to come, but I will not stay in a hotel and pay ransom to do so!! Affordable housing will not be necessary because everyone on the islands will have to leave after another economic disaster happens with no tourism! Quality will not make up quantity. Didn’t they learn anything from COVID with the lack of tourists feeding the economy? Hanneman seems to be on a crusade, but sadly not for the people or the islands. More for his pockets! There IS a middle ground, but greed and money seem to cloud the vision!
I may have missed it but what is, very specifically, a STR? Is it a single-family dwelling formerly referred to as a “house”. Does it include condominiums?
We have mostly stayed in Condos and would likely continue to do so if reasonable in cost. We have stayed in STRs on Ohau and Big Island where there are not sufficient lodgings available the area. Lack of a STR in those areas would preclude our staying there. Which is maybe the goal.
I’m a retired teacher who bought a small condo 22 years ago. HOAs, state property tax, and “room tax” have more than doubled, making the Hawaii dream unreachable for all but the very rich. The state of Hawaii is already trying to drive out this STR with its taxing power; not realizing how much visitors contribute to the economy and how much we love the Hawaiian people. Mayor Bissen and Gov Grene have a responsibility to plan for affordable housing for the industry that now supports the state, now that “big ag” has moved on. Government has failed to plan in the past. Don’t destroy Hawaii by killing the golden goose.
We love visiting Hawaii, but have no interest in staying in hotels or resorts. We need the kitchen facilities a short term rental provides. This really seems to be a power play by hotel and resort owners. Maybe go after owners with many rentals, but leave other owners alone.
It’s unfortunate that they let this get so out of hand. I agree with other comments that vacation home purchases should be limited. Only large corps own 20+…. San Diego now has a limit on the amount of permits that can be filed and approved and they have a lottery for any new openings. If a property is sold, the permit is cancelled and open to the lottery. There are options other than forcing all tourists into hotels.
Fortunately, we bought a small one bedroom ocean front condo in 1999. It was built in 1970 as a “condo-tel”, it still says that in our declaration and bylaws. It’s not suitable for most people to live in, limited storage, tiny bathroom, tiny kitchen… just the very basics. Laundry room with three washers for the whole building, no amenities, has an office to rent the condos. That’s it.
Short term renting helped pay the mortgage, but it’s never great income.
Lack of affordable housing is a nationwide disaster.
One solution would be to outlaw business ownership of homes, and to allow one home owned per one social security number.
Home prices might fall 50% or more which would be a miracle for the young people trying to survive.
It sounds tempting, but I think affordable housing is a red herring. As mentioned elsewhere, it is supply and demand. Build more units generally and the pricing will go down. All of these attempts to control the housing market only end up making it more expensive for locals and visitors alike.
Limiting a house per person won’t solve your housing issue. If it cost a builder $300k to build a house it’s not going to sell for less. Until costs and regulation fees go down you won’t have cheaper housing.
Aloha from the ninth island 😊
Many of the vacation rentals are condos with exorbitant monthly HOA dues. Many of them north of $1000 per month. The makes them very difficult to afford for a homeowner and also difficult to have as a residential rental as the landlord would have to charge high rents in order to cover that. A lack of rentals plus high hotel rates are not going to be sustainable for Hawaii tourism to thrive. The state should put effort into attracting builders to create affordable housing for locals. I love visiting Hawaii but will not pay the high room rates regardless of whether or not I can afford it. I just do not see all of this working out in anyone’s favor.
I agree. We stay 1 to 2 months on various islands and eating in restaurants every day is time consuming and quite expensive, if you can even get a reservation. So we cook many meals in our rental units, which can’t be done in hotels. As retirees, we couldn’t afford to visit if these ST rentals were not available!!
Typical solution, tax and nothing solved.
The horse is out of the barn. Good luck putting the Genie back in the bottle. (Mixing metaphors to make a point.) This excellent BOH piece tells you everything you need to know about STR’s in paradise. I don’t even own a property and I took great exception to the “extractive and exploitive individuals” line. Good luck determining who exactly is extractive and exploitive. Lawyer up STR owners: Hell is freezing over.
I love Hawaii been there many times plan on coming back but if they get rid of short term rentals I won’t be back