Hawaii (USA) moves forward with vacation rental regulation

09-05-24

Hawaii, a paradise destination known for its dreamy beaches and spectacular scenery, is joining the growing global trend of regulating vacation rentals. The governor, Josh Green, has announced the passage of a law designed to allow local governments in the archipelago to regulate vacation rentals.

This measure responds to the urgent need to address the affordable housing crisis affecting residents and workers in the tourism sector in the islands. The situation has been further exacerbated by the devastating wildfire that ravaged the island of Maui and left the town of Lahaina nearly destroyed a year ago.

According to reports from the American Red Cross, about 1,750 people displaced by the fire are still staying in hotels, waiting to find long-term housing. Despite efforts, the supply of available housing remains insufficient.

The Federal Emergency Management Agency has offered incentives to short-term rental owners, offering premiums nearly double the market rate, in order to rent their units to fire victims. However, demand continues to outstrip supply, underscoring the need for more comprehensive and effective regulation in Hawaii's vacation home market.