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• $39 per Hour
• 21 % non-vacationers
• $597 Million Visitor Spending
• $1 . 1 Billion Total Impact
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How to Avoid
Unindended Consequences.
HAWAVI APPLESEED
CENTER FOR LAW & ECONOMIC JUSTICE
For Immediate Release Contact
• March 22, 2018 Madison DeLuca, Policy Analyst
(808) 369-2515
madison@hiappleseed.org
REPORT DOCUMENTS THE IMPACTS OF VACATION RENTALS ON
HAWAI`I'S HOUSING SUPPLY AND ECONOMY
d'tl " Vacation rentals offer the possibility of extra income for some residents and additional tax revenue for
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the state,but many of the benefits go to nonresident investors.
HONOLULU,Hawaii—Hawai`i's housing costs are among the highest in the nation and our workers earn
the lowest wages in the nation after accounting for cost of living.These financial pressures are compounded
by Hawai`i's regressive tax system,which places the second highest tax rate in the nation on people in
poverty.
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Given these factors,an unusually high percentage of our residents-43 percent—are renters,the fourth
pr
't highest percentage in the nation.Rent is more expensive in Hawaii than any other state.In recent years,
Yrents have been increasing at more than twice the rate of wages.It is therefore no surprise that Hawaii has
<l/ the highest rate of homelessness in the nation,and families who have called Hawaii home for generations
are being priced out of the islands.
At a time when Hawaii is only building half of the units necessary to keep up with demand,housing stock Y
w available to Hawaii residents is being eaten up by nonresident purchasers.Twenty-seven percent of Hawaii
home sales are made to nonresidents.On Maui,60 percent of condominium sales are made to nonresident
buyers.The proliferation of short term vacation rental units(VRUs)—the majority of which are operated
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ib by nonresidents—has added another pressure point by further limiting the availability of housing for local r
families. f
p„ Hawaii Appleseed Center explored the consequences of the proliferation of vacation rentals in Hawaii
and released its findings in a new report titled"Hawai`i Vacation Rentals:Impact on Housing&Hawai`i's
Economy."The report finds that vacation rental units(VRUs)put pressure on Hawai`i's already-stressed
housing market by reducing the shelter available for Hawaii residents and driving up rents.
"Affordable housing is the most crucial issue affecting our residents'quality of life and their ability to
¢ economically survive,"said Hawaii Appleseed Co-Executive Director Victor Geminiani."Speculators and
\A,t investors have been eager to take advantage of the tremendously profitable vacation rental industry at the
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$1 . 1 B*iion Industry
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Inde pendent Economic
Impact Study
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oteon that this bill be sent back to the
County Council with the recommendation
thIt the Council conduct a rigorous
independent economic impact stud
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