Hawaiʻi Appleseed

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Proliferation of vacation rentals burdens renters, communities

The proliferation of illegal vacation rentals is putting significant pressure on Hawaiʻi’s already stressed housing market and hurting local residents. Internet-based platforms have made it possible for anyone to advertise housing for short-term illegal rentals regardless of state or county laws. In just the last two years, the number of housing units advertised for vacation rentals has increased by 35 percent.

Best estimates indicate that there are more than 23,000 units currently advertised throughout the state as vacation rentals. The vast majority of these short-term rentals are illegal. This has resulted in one out of every 24 homes in the state being used as a vacation rental and withdrawn from the local need for housing. The ratio is even more alarming on neighbor islands. On Kauaʻi, the figure is one in 10, and on Maui it is one in 7. Some communities like Lahaina have been overwhelmed, with one out of 3 units of available housing being used for vacation rentals.

Our state legislature and counties must begin bringing some order to controlling the proliferation of illegal vacation rentals. We need to invigorate efforts to enforce our laws. We should simplify enforcement by creating a presumption that owners who advertise units without a permit are, in fact, operating illegally. And we should give neighbors the right to enforce vacation rental prohibitions in court. We can’t afford to wait longer to address this rapidly growing problem.