The beautiful state of Hawaii has long been a top vacation destination in the United States, but the rise of short-term vacation rentals like Airbnb and Vrbo is making it difficult for locals to afford housing. Governor Josh Green recently signed legislation to give local governments more power to regulate these rentals, which he believes are driving up housing costs and exacerbating the affordability crisis.
Hawaii has the highest housing costs in the country, with median rents over $2,000 a month and home prices exceeding $1 million. A family needs a six-figure income just to live comfortably. The prevalence of vacation rentals has played a major role in pushing up prices, especially on Maui where wildfires destroyed billions of dollars worth of property last year.
According to a report from the University of Hawaii, over 9,000 housing units on Maui are being used as short-term vacation rentals, leaving many locals without long-term housing options. Out-of-state buyers are also swooping in, making up a significant portion of all housing transactions on the island. This has led to a shortage of homes for residents, with over 5,000 Maui residents still displaced months after the wildfires.
While Airbnb and Vrbo offer an affordable option for vacationers, the social cost of removing homes from the housing market is significant. Hawaii must balance its appeal to tourists with the need to provide housing for its residents. By cracking down on short-term vacation rentals, the state is taking a step towards ensuring that locals have a place to call home amidst the ongoing housing crisis.
