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How to Avoid <br /> Unindended Consequences. <br /> HAWAVI APPLESEED <br /> CENTER FOR LAW & ECONOMIC JUSTICE <br /> For Immediate Release Contact <br /> • March 22, 2018 Madison DeLuca, Policy Analyst <br /> (808) 369-2515 <br /> madison@hiappleseed.org <br /> REPORT DOCUMENTS THE IMPACTS OF VACATION RENTALS ON <br /> HAWAI`I'S HOUSING SUPPLY AND ECONOMY <br /> d'tl " Vacation rentals offer the possibility of extra income for some residents and additional tax revenue for <br /> P Y <br /> the state,but many of the benefits go to nonresident investors. <br /> HONOLULU,Hawaii—Hawai`i's housing costs are among the highest in the nation and our workers earn <br /> the lowest wages in the nation after accounting for cost of living.These financial pressures are compounded <br /> by Hawai`i's regressive tax system,which places the second highest tax rate in the nation on people in <br /> poverty. <br /> 1 <br /> Given these factors,an unusually high percentage of our residents-43 percent—are renters,the fourth <br /> pr <br /> 't highest percentage in the nation.Rent is more expensive in Hawaii than any other state.In recent years, <br /> Yrents have been increasing at more than twice the rate of wages.It is therefore no surprise that Hawaii has <br /> <l/ the highest rate of homelessness in the nation,and families who have called Hawaii home for generations <br /> are being priced out of the islands. <br /> At a time when Hawaii is only building half of the units necessary to keep up with demand,housing stock Y <br /> w available to Hawaii residents is being eaten up by nonresident purchasers.Twenty-seven percent of Hawaii <br /> home sales are made to nonresidents.On Maui,60 percent of condominium sales are made to nonresident <br /> buyers.The proliferation of short term vacation rental units(VRUs)—the majority of which are operated <br /> k <br /> ib by nonresidents—has added another pressure point by further limiting the availability of housing for local r <br /> families. f <br /> p„ Hawaii Appleseed Center explored the consequences of the proliferation of vacation rentals in Hawaii <br /> and released its findings in a new report titled"Hawai`i Vacation Rentals:Impact on Housing&Hawai`i's <br /> Economy."The report finds that vacation rental units(VRUs)put pressure on Hawai`i's already-stressed <br /> housing market by reducing the shelter available for Hawaii residents and driving up rents. <br /> "Affordable housing is the most crucial issue affecting our residents'quality of life and their ability to <br /> ¢ economically survive,"said Hawaii Appleseed Co-Executive Director Victor Geminiani."Speculators and <br /> \A,t investors have been eager to take advantage of the tremendously profitable vacation rental industry at the <br /> T <br />