Hawaii Considers Banning Short-Term Vacation Rentals Amid Housing Crisis

09.04.2024 - 15:37 / travelpulse.com / North America / Laurie Baratti

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. 

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.”

“People are