West Maui vacation rentals plunged in October

Dan Nakaso, The Honolulu Star-Advertiser
·4 min read

Nov. 23—The availability of short-term vacation rentals in West Maui was 49.1 % lower in October compared with the year before, with Maui struggling to find long-term housing for survivors of the Aug. 8 wildfires.

The availability of short-term vacation rentals in West Maui was 49.1 % lower in October compared with the year before, with Maui struggling to find long-term housing for survivors of the Aug. 8 wildfires.

The lack of supply in Lahaina, Kaanapali, Napili and Kapalua dragged down Maui's overall availability of short-term rentals 8.5 % compared with October 2022—meaning a drop in overall supply from 211, 890 units in 2022 to 193, 861 on the Valley Isle last month.

But the biggest decline was seen in West Maui, which went from 91, 759 units in 2022 to 46, 743 last month.

The lack of supply exacerbates a housing shortage on Maui that existed long before the wildfires and continues as Gov. Josh Green, Maui Mayor Richard Bissen, the Hawaii Housing Finance and Development Corp. and others appeal to owners of short-term vacation rentals to open their dwellings to fire survivors in need of longer-­term housing in order to move them out of hotel rooms in West Maui.

The state Department of Business, Economic Development and Tourism released its monthly vacation rental report Wednesday, using data compiled by Lighthouse Intelligence Ltd. based on listings on Airbnb, Booking.com and HomeAway.

DBEDT defines vacation rentals as a rental house, condominium unit, private room in a private home, or shared room or space in a private home.

With the exception of Maui, every major county saw increases in the nightly availability of short-term rentals in October, led by a 35.6 % gain on Hawaii island and 33.5 % increase on Kauai.

Compared to traditional hotel rooms, short-term vacation rentals are cheaper, typically house more people and differ in other ways.

In October, Hawaii saw a 50.9 % average monthly occupancy of short-term rentals compared with 74.5 % occupancy for island hotels, according to DBEDT.

But the average daily rate for vacation rentals in October was only $265 in October, compared to $347 for hotels.

DBEDT emphasized that vacation rentals are not necessarily available year-round or each day of the month.

Earlier this month, Omnitrak Research reported that U.S. short-term rentals generally attract younger visitors who stay longer and spend more compared with hotel guests "when properly regulated and operated."

Illegal short-term vacation rentals have become a flash point in several Oahu communities where neighbors are frustrated by large numbers of occupants taking up street parking, generating trash and noise into the night and other issues.

Across the country, visitors in short-term rentals stay an average of four nights compared with 2.9 nights in hotels, according to Omnitrak's TravelTrak America survey of 144, 000 Americans for the 12-month period that ended in June.

And 48 % of short-term rental customers are younger travelers with millennials, and 12 % arrived with Gen Zers—comprising 60 % of overall guests versus 43 % of younger travelers staying in hotels.

Because short-term vacation rentals generally accommodate more people, they see an average of 3.7 guests compared with only 2.8 hotel visitors.

With longer stays and larger numbers of visitors, short-term rental guests spend an average of $1, 809 compared with $1, 207 for hotel guests.

"With total trip spending 1.5 times higher than hotel travelers, destinations stand to gain from the growing number of short-term rental vacationers in the marketplace, " Chris Kam, Omnitrak president and COO, said in a statement. "However, destinations need to balance the economic benefits of short-term rentals with their potential impact on residents' quality of life."

Overall, Omnitrak reported that hotels across the country continue to dominate, with 54 % of travelers staying in hotels compared with only 6 % occupying short-term rentals in the 12-month period that ended in June.

"While the original appeal of short-term vacation rentals centered around lower prices and value, the segment has evolved, even as major hotel chains are also developing product offerings to appeal to travel changing preferences, " Omnitrak founder and CEO Pat Loui said in a statement.

"Understanding the short-term rental traveler is key to attracting responsible visitors who produce considerable economic and quality of life contributions for a community, " Loui said. "At the same time, changing accommodation models have potential to alter tourism's overall economic impact and jobs."