Hawaiʻi vacation rentals threaten our survival

If we do not effectively regulate vacation rentals, at best we risk disrupting communities when residents are forced to chase a shrinking pool of affordable rental units. At worst, we contribute to Hawaiʻi’s already severe homelessness epidemic.

A closer look at the economics of the short-term rental industry in Hawaii reveals that the average Airbnb short-term rental can generate over 70 percent more a month in revenue then the unit would generate as an apartment for locals.

For example, there’s a currently listed studio unit in an affordable housing high rise in Salt Lake that generates almost $30,000 annually or the equivalent of $2,500 a month. That same high rise lists a comparable studio unit at $1,161 per month.

A recent study by the Hawaiʻi Tourism Authority paints an even more disturbing picture suggesting that a unit occupied only 80 percent of the year will generate over 3.5 times the rent charged for a rental of over 30 days. The economics helps explain why the HTA has determined that the number of vacation rental units in the state grew 13.2 percent from 2015 to 2016.