Hawaii Considers Phasing Out Short-Term Rentals to Address HousingCrisis
The worsening housing crisis in Hawaii has prompted law makers to consider phasing out short-term rentals as a potential solution. Two bills, HB1838 and SB2919, have been moving through the state legislature and, if passed, would give counties the authority to phase out short-term rentals in residential areas. These measures are intended to provide more housing options for local residents and stem the tide of homelessness.
However, the issue of short-term rentals has been a contentious one across the United States, with cities and states struggling to balance the economic benefits they bring with the impact theyhave on housing affordability. In Hawaii, the Maui wildfires last summer brought renewed attention to the housing crisis, which was already at a critical juncture before the fires displaced thousands of people.
Bills Provide Legal Framework for County Action
The proposed bills would provide the legal framework for counties to regulate short-term rentals in various ways. If passed, counties could adopt new rules to limit rentals or implement a gradual phase-out over several years. State Senator Jarrett Keohokalole, one of the co-authors of the Senate bill, emphasized that the bills do not enact any specific regulations but rather empower counties to make those decisions.
Local Support and Opposition
Many local housing nonprofits, hotel companies, and local leaders support the bills, including Maui Councilmember Keani Rawlins-Fernandez. They argue that short-term rentals have contributed to the decline in available housing for locals and that regulation is overdue. However, the bills also face opposition from homeowners who rely on short-term rental income, Realtor groups, rental alliances, and rental platforms such as Airbnb.
Legal Concerns and Constitutional Questions
Airbnb has expressed concerns about potential financial losses and has hired a former Hawaii attorney general to argue against the bills on constitutional grounds. The company claims that the measures could result in lawsuits challenging their constitutionality, arguing that existing uses of land are protected. Representative Luke Evslin, who is the chair of the House Committee on Housing, maintains that the bills are constitutional but acknowledges that there could be legal challenges if counties implement phase-outs.
Next Steps and Potential Impact
The bills have been voted out of their respective chambers and are now in conference committee, where further changes can be made before a final vote. If passed, it would be up to county leaders to determine how and to what extent they implement phase-outs of short-term rentals. Evslin is optimistic about the bills’ success, citingbroad support across the legislature for action on the housing crisis.
The measures have the potential to significantly impact the short-term rental industry in Hawaii and could provide a model for other states and cities grappling with similar housing challenges.
