Hawaii’s Short-Term Rental Boom Means Locals Can’t Afford to Live

Hawaii is a gem. The culture, the community, the lifestyle. But if you’re struggling to afford housing here, it’s clear the system isn’t working for you. Investors are buying up properties and turning them into short term rentals, prioritizing tourists over kamaaina.

I’m not against property investment. People should be able to invest and rent properties, but many of those housing options should be affordable for the people who live and work here. On the mainland, if housing gets too expensive in one area, you can drive an hour out in any direction and find something more affordable while still staying connected to your home community. Hawaii is different. If you can’t make it work here financially, your only option is to leave. That’s not just a housing issue. That’s a cultural loss.

There is a clear oversaturation of investment properties in Hawaii compared to most places in the country. And while tourism has long been part of our economy, it should not dictate our housing availability. Homes are meant to be lived in, not just profited from.

Foreclosure is another area where the system fails local residents. Hawaii leads the nation in foreclosure timelines. According to ATTOM Data Solutions, it takes over 2200 days on average for a foreclosure case to be completed here. That is more than six years of a home sitting empty that could otherwise be rented or owned by a local family. Meanwhile, we are in a housing crisis.

What needs to happen

1. Prioritize affordable rentals over vacation units
   Local government must limit short term vacation rentals in areas where residents struggle to find housing.

2. Fine owners who let properties deteriorate
   If a property is vacant and neglected, owners should face swift and automatic penalties.

3. Move foreclosures through the courts faster
   Empty homes should not sit idle for years while families search for shelter.

4. Support local homeownership
   Programs that assist with down payments or financing should focus on helping Hawaii residents stay in Hawaii.

5. Discourage absentee ownership
   Tax policies should be adjusted to make it more expensive for out of state investors to hold unused properties.

Why it matters

Every year a property sits empty is another year a local family is displaced. Every vacation rental that replaces a long term home is a step backward for our community. This is not about blaming investment. It’s about restoring balance.

The state needs to step up. Let’s stop pretending tourism is the only viable economic path forward. We can support visitors while also protecting the right of locals to live and thrive here.

Bottom line

People should be able to invest in property. But it cannot come at the cost of pushing out the people who make this place what it is. Our housing policy must center residents. That means enforcing property standards, processing foreclosures efficiently, regulating short term rentals, and helping Hawaii families buy homes in the communities they love.