Vacation rentals throughout Hawaii are out of wack, with high supply and pricing, and low demand and occupancy. This was reported by the State’s Department of Business, Economic Development & Tourism in their Hawaii Vacation Rental Performance Report for October.
If this trend continues, we expect a softening of nightly rates and more deals ahead for vacation rentals. Travelers booking vacation rentals should always scour for promotional opportunities before making a reservation.
Key insights from Hawaii’s vacation rental trends:
The number of vacation rental nights available last month 761,000. But of those, just 387,400 nights were rented. That comes to an occupancy rate of 50.89%. Hawaii hotels, by comparison, are excelling in occupancy, reaching 74.5% last month.
Vacation rental supply is down 20% compared with 2019. The average daily rate for vacation rentals statewide was $265, which is still +38% compared with 2019.
Maui, still recovering from the Lahaina fire, saw its supply of vacation rentals drop, now -40% at 193,900 nights, with demand at just 98,500 units. Occupancy was 50.8%, and average rate was $279.
Honolulu had 225,900 nights available last month, -12.2% compared with 2019. Unit demand was only slightly better than statewide, at 53.6%. The average daily rate of $225 was the most reasonable of the islands.
Big Island had 211,700 available room nights, -6% compared with 2019. But demand sank to the lowest of all the islands, at just 44.3%. Average daily rates of $299.
Kauai had the fewest vacation rentals available at 129,600 nights, -10% compared with 2019. Unit demand was down 29% compared with 2019, which was 74,000. That yielded the highest occupancy of the islands, at 57.1%. Average daily rates were $356.
Continuation of the prior month’s trend.
We recently reported on September Hawaii vacation rental data, which also revealed mixed results including a drop in demand for Hawaii vacation by 40% in September.
Summing up Hawaii vacation rentals.
In conclusion, Hawaii vacation rentals can still provide substantial cost-sharing benefits, especially for larger groups, a more local experience, and advanced booking options.
However, potential hidden costs, quality concerns and sometimes misleading advertising are among issues impacting vacation rentals that should be carefully assessed in advance. These impact the overall affordability and value for Hawaii vacation seekers.
Issues including undisclosed fees and variability in amenities, quality, and consistency also appear to affect the appeal of vacation rentals compared to hotels.
If you’ve stayed in Hawaii vacation rentals before, are you more or less inclined to do so in the future?
Stayed at an Air B and B ON Oahu north shore. Never again. Was so dirty I had to clean to take a shower and kitchen too . It was right on the highway and The fees were ridiculous! Yes got them taken off to not give a bad bad review.
This is a quote from our Vacation Rental property manager, with respect to the Princeville to Haena vacation rentals. Make of it what you want:
“Bookings are down across the board. Even Christmas is mellow for us this year. It’s picking up a little and I’ve noticed an uptick in last minute bookings.”
Hi David.
Thanks for the heads up. It looks pretty busy to us, so not sure what to make of it.
Aloha.
Wow! I do want to answer this question. Most “locals” are begging us not to come to the isle and leave room for the islanders that need the STR. The pricing is out of my reach. The “locals’ should love & welcome me as I am educated in the history of isles, respect more than most. Yet, the corporate world, Wants $$$$$$$ They will eventually push me out of a return. And it is sad. I only want to return during my final sunset hours here on Earth. But, $$$ don’t have heart and my heart is as broken as the ole wallet!
Get prices back down to around $100-$150/night and people will come back. Going from $350 to $300 aint gonna do it.
All the things that made Maui amazing are still there. Prices are incredible right now so check for great airfares. Beaches, snorkeling, sunsets, waterfalls, whales, dinner cruises, paddle boarding, surfing, golfing, horseback riding, fishing, hula dancing, 5 star dining and the best weather on the planet.
Hawaii has overpriced themselves out of the market. Beautiful beach properties are available throught the world, many within shorter flights. The attitude is not good in hawaii and I have lived oahu-maui for 70 years.
Right now bargains are all over Maui. We love Ka’anapali!
Yes, you are correct. I lived on islands there in early 70’s and the attitude is not good and thats just the beginning………It’s strange. I don’t see any of the “complainers’ taking Any steps to be self-sufficient so they can live like they proclaim they can. With the most perfect weather, yet, very few have their own gardens or the education to ensure their own career path?!
Well said. That is the tragedy of our island culture. We don‘t know how to develop our young people, materially or spiritually.
One of the many reasons why my heart is in Hawai’i is because people are still decent there, even the young people.
I said to a younger woman one day, “ I love Hawaiian music, but you probably think it’s old fashioned.”
She said,”No, I love Hawaiian music.”
You wouldn’t catch anyone on the mainland loving anything their parents love.
It’s a fastly changing world, but Hawai’i is still better than any where else I’ve ever been.
That’s why I’m trying my hardest to figure out how to earn a living there. I could easily do it if politics didn’t get in my way.
With all the negative data provided, we are still coming off our best year ever, and are already solidly booked into June 2024. Our property is a single 3 bed 2 bath home with a lap pool on a 1 acre landscaped parcel in HPP, south of Hilo.