Hawaii Could Ban Short-Term Lets Amid Ongoing Housing Crisis

Hawaii is currently suffering a major housing crisis which has led to two bills currently being considered by the Aloha state. The bills could reshape the tourism layout of the islands by banning short-term vacation rentals. Moreover, this could mean the end of visitors booking stays through platforms like Airbnb and Vrbo in the future.

Hawaii considers banning short-term vacation rentals

The two bills that are currently moving through the state legislature could allow individual counties to phase out and eventually eliminate short-term vacation rentals. This has stirred up major debate among Hawaii’s housing advocates, property owners, hotels and online vacation rental platforms.

The reason for the legislature is Hawaii’s chronic housing shortage, which was made even worse by the catastrophic August 8 wildfire in Lahaina. The wildfire is responsible for 101 deaths and the destruction of 4,000 homes, leading thousands of residents to be displaced. Moreover, around 3,000 residents are still living in hotels, with no home to go to.

Meanwhile, the banning of vacation rentals would be a crucial step towards securing long-term housing solutions for Hawaiians. Moreover, advocates believe this would mitigate the wider effects of short-term rentals on local communities.

House Bill 1838 is bound for the Senate

As for the first of the suggested legislation, House Bill 1838 has cleared its last hurdle since the March 28 hearing. It will now head to the Senate floor for a decisive vote. Meanwhile, Senate Bill 2919 is currently waiting for its third reading by April 11 to proceed further.

Moreover, for the two bills to become law, they must both achieve a consensus by the end of the session on May 3. From then, the bills will be passed for the consideration of the governor.

Why is there a housing shortage in Hawaii?

David Louie, Airbnb’s attorney and a former Hawaii attorney general attributes the housing shortage to many illegal short-term rentals. He also attributes the problems as a lack of oversight and enforcement in Hawaii. While Louie claims that both new bills are unconstitutional, the current attorney general for Hawaii, Anne Lopez, says that HB1838 is indeed constitutional

Moreover, a recent study by the Council for Native Hawaiian Advancement shows that at least 1,000 residents fled Maui since the deadly fire. This has led to them joining many thousands of people born in Hawaii who now live on the US mainland. Moreover, last year’s consensus reveals that for the first time in history, more native Hawaiians now live on the US mainland than live in their ancestral homelands.

Speaking to SF Gate, Jordan Ruidas, organizer and founder of Lahaina Strong, said:

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.

The thought of the possibility of my keiki [children] and my future grandchildren not being able to stay and live in Hawaii is haunting.

Speaking of the Maui wildfires in a February press conference, Hawaiian governor Josh Green said:

Housing is at the core of our problems in the state of Hawaii. The fire uncovered a clear truth, we have too many short-term rentals owned by too many individuals on the mainland, and it is bulls**t. Our people deserve housing here.