Are Airbnbs banned in Hawaii? New law seeks to cracks down on short-term rentals.
The Bill’s Impact
A bill aimed at reshaping vacation rental regulation across Hawaii has passed the Senate and House, awaiting Governor Josh Green’s signature. If signed, the law will go into effect on January 1, granting each county the authority to redefine zoning ordinances and convert short-term rentals into long-term residential housing. Those who violate the law will be charged a fine of $10,000 per day.
The Housing Crisis
Hawaii’s housing affordability has worsened over the past two decades. A single-family home costs four times as much in 2023 than in 2000, and less than one-third of households can afford the typical local home. Rents continue to rise, with Maui having the most expensive median rent in the state – a typical apartment is $2,500 a month.
The Role of Short-Term Rentals
About 30,000 of Hawaii’s 557,000 total housing units, or 5.5%, are short-term rentals, compared to cities like Las Vegas, where only 3% are short-term rentals. Maui has the highest percentage of vacation rentals, accounting for 15% of the island’s total housing supply. The high percentage of short-term rentals contributes to the housing crisis, making it difficult for locals to find affordable housing.
The Impact on Maui
August’s wildfires, which destroyed the majority of Lahaina and displaced thousands of West Maui residents, only amplified the housing crisis on Maui. Many displaced residents are still living in hotels, over eight months since the fires ravaged West Maui. Some are leaving Hawaii entirely due to the lack of stable long-term housing.
The Mayor’s Plan
Maui County Mayor Bissen has proposed tax incentives for owners to convert their units into long-term housing. He wants to “increase the inventory of available long-term units for people of Maui.” However, community leaders argue that the issue is not a lack of inventory but rather the fact that the inventory is being used for short-term rentals.
The Future of Vacation Rentals in Hawaii
The new law marks a significant step towards addressing Hawaii’s housing crisis. While it may not happen overnight, the bill’s passage is a major victory for those advocating for more affordable housing options. As the law takes effect, it will be interesting to see how it impacts the short-term rental market and the lives of those affected by the housing crisis.