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May 22, 2024
Are vacation rentals banned in Hawaii?
While the short answer for now is no, recent legislative changes are reshaping the way short-term rentals operate in the state.
If you are a vacation rental host in Hawaii, this is a difficult challenge to navigate. To help, we’ve gathered the latest updates, advice, and information that we have seen in other highly regulated vacation rental markets. Here is what vacation rental property managers and hosts need to know.
While vacation rentals in Hawaii are not completely banned, a new law, Senate Bill 2919 (or just SB 2919), signed by Hawaii Gov. Josh Green paves the way for local governments to regulate—and potentially ban—vacation rentals. This bill empowers counties and local governments in Hawaiib to create zoning laws regulating short-term rentals and even phase out transient accommodations in certain zones.
According to Beyond’s vacation rental data, we have started seeing declines in occupancy, average daily rates (ADRs), and revenue pacing, as expected with so much uncertainty in the Hawaii short-term rental market. We are also seeing decreased demand in the market, with booking lead times dropping by 17%.
Let's dive deeper into what SB 2919 entails and how it might impact vacation rental operations.
SB 2919 clarifies the counties' authority to control the "time, place, manner, and duration" of land uses, particularly transient accommodations including short-term rentals. This means that counties now have the explicit power to:
One of the primary goals of SB 2919 is to alleviate Hawaii’s housing crisis. The bill aims to increase housing availability by addressing the issue of illegal short-term rentals, which often compete with long-term housing options for residents. Even though, according to research from the Harvad Business Review, banning short-term rentals is a poor solution to increase housing affordability.
For vacation rental hosts and property managers, SB 2919 brings both challenges and opportunities:
The new short-term rental regulations in Hawaii, encapsulated in SB 2919, represent a significant shift in the vacation rental landscape. For hosts and property managers, understanding and adapting to these changes is crucial. By staying informed, complying with local laws, and engaging with the community, you can navigate these challenges and continue to offer exceptional vacation experiences in Hawaii.
At Beyond, we’re here to help! Are you a Beyond user with specific questions about how to respond? Reach out to us at support@beyondpricing.com, we’re here to help.
Not using Beyond or new to dynamic pricing? Get all your questions answered by contacting us.
Since pioneering dynamic pricing for the short-term rental market in 2013, Beyond has helped thousands of users price millions of listings and generate billions of dollars in revenue. Beyond’s unparalleled access to and analysis of real-time, advanced global short-term rental data powers its ability to unlock, inform, and automate action for every kind of hospitality business.
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