Hawaii
is at a crossroads concerning the future of short-term vacation rentals, with
potential legislation now in play that could reshape the tourism landscape of
the islands. Newly proposed legislation could mean that booking stays through
platforms like Airbnb
and Vrbo may cease to be in option in the future.
There are two
bills currently moving through the state legislature that would offer the state’s
individual counties the authority to phase out and eventually eliminate these
rentals, which has stirred up debate among Hawaii’s housing advocates, property
owners, hotels and online vacation rental platforms.
Ongoing Housing
Crisis
The proposed
measures aim to address Hawaii's chronic housing shortage, which has been
exacerbated by crises such as the devastating August
8 Lahaina wildfire that claimed 101 lives, destroyed 4,000 homes and
displaced thousands of residents.
Advocates see
these bills as a crucial step toward securing long-term housing solutions for
residents and hope they will serve to mitigate the wider adverse effects of
short-term rentals on local communities.
House Bill 1838 has already cleared its last committee
hurdle, advancing after its March 28 hearing, and is now bound for the Senate
floor for a decisive vote before being bounced back to the House. Similarly, Senate Bill 2919 is awaiting its third reading by April 11
to proceed further. To become law, both bills must achieve a consensus by the
end of the session on May 3, after which they will head to the governor for
consideration.
Airbnb’s attorney,
David Louie, who is himself a former attorney general of Hawaii, attributes the
housing problems to a proliferation of illegal short-term rentals, and lack of oversight and enforcement.
Although he argued that both bills are unconstitutional, in a legal analysis, Hawaii’s
current attorney general, Anne Lopez, declared HB1838 to be quite
constitutional.
A recent study conducted
by the Council for Native Hawaiian Advancement reckons that at least 1,000
residents have fled Maui since the fire, joining the hundreds of thousands of people
born on the Islands who now reside on the U.S. mainland. In fact, last year’s
census marked the first time in history that records showed more Native
Hawaiians now live in the continental U.S. than do in their ancestral homeland.
Jordan Ruidas,
founder and organizer of Lahaina Strong, told SF
Gate, “If we continue down the wrong path and don’t get a hold on
short-term rentals that are wreaking havoc on our housing crisis in not only
Maui, but all of Hawaii, the amount of locals leaving will be detrimental.” She
added, “The thought of the possibility of my keiki [children] and my future
grandchildren not being able to stay and live in Hawaii is haunting.”
Fallout From Maui
Wildfires
“People are
leaving. People are committing suicide. They just couldn’t take it,” Albert
Perez, director of the nonprofit Maui Tomorrow Foundation, told the outlet. He
referred to the 10 people who committed suicide between the August 8 fire and the
end of 2023, according to the Maui Police Department.
The devastating
fire indeed intensified Hawaii’s already urgent housing crisis to a climactic
level. This pair of bills was introduced in answer to public pressure created
by community organizations like Lahaina Strong, whose members are largely
fire survivors themselves.
“Housing is at the
core of our problems in the state of Hawaii,” Governor Josh Green said during a
February press conference. “The fire uncovered a clear truth, we have too many
short-term rentals owned by too many individuals on the mainland, and it is
bullsh-t. Our people deserve housing here.”
Green has been
pushing for moratoriums on
short-term rentals on the island of Maui since December and trying to
get more of their owners to open their homes to those impacted by the fire, but
recently announced that there’s no longer a need since official have obtained
the minimum housing needed to accommodate survivors.
However, this
means that, as of March, more than 3,000 West Maui residents are still living
in hotels, which is paid for by FEMA. Unfortunately, the program is scheduled
to cease on April 10,
although the state is seeking an extension.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
