Hawaii Governor Moves to Remove 10,000 Vacation Rentals to Boost Local Housing
HONOLULU, Hawaii — In a significant shift for the Aloha State’s housing and tourism landscape, Governor Josh Greene announced plans to remove 10,000 vacation rentals from the market to increase affordable housing availability for local residents. The move, unveiled during his State of the State address, reflects a growing effort to balance Hawaii’s booming tourism industry with the needs of its communities.
Governor Greene, a Democrat, emphasized the urgency of addressing housing shortages exacerbated by the proliferation of short-term rentals, which have displaced many local families. “We also have to return more homes to local families — including short-term rentals that have taken too many units off the market,” Greene said. He further pledged support for counties to reintegrate these properties into the long-term housing market, prioritizing residents over absentee investors.
This initiative follows legislation signed by Greene in May 2024 that empowered counties to regulate short-term rentals with the goal of expanding affordable housing options. Most recently, the Maui County Council passed a bill in December 2025 to phase out thousands of transient vacation rentals in apartment districts, a measure accelerated by the aftermath of the devastating 2023 wildfires. These policy changes come as Hawaii welcomed nearly 9 million visitors in the first 11 months of 2025, according to preliminary data from the Hawaii Department of Transportation.
The governor’s announcement signals a strategic pivot in tourism policy, aiming to mitigate the housing crisis while maintaining the state’s appeal as a premier travel destination. The tension between tourism growth and housing affordability has been a persistent challenge, with many locals priced out of the market due to the demand for short-term rentals.
Experts note that Hawaii’s approach aligns with broader national trends where popular tourist destinations grapple with balancing economic benefits from visitors against the social costs to residents. The U.S. Department of Housing and Urban Development highlights that short-term rentals can significantly reduce available affordable housing stock in high-demand areas.
Governor Greene’s plan also dovetails with efforts to address climate change funding through tourism-related taxes, as Hawaii has faced legal challenges over its high tourist tax rates. The state’s evolving policies reflect a comprehensive strategy to ensure sustainable tourism that benefits both visitors and the local population.
For travelers and residents alike, these changes may reshape the visitor experience and housing market dynamics in the coming years. The state government and county officials are expected to work closely to implement the phase-out of short-term rentals while exploring alternative housing solutions.
More information on Hawaii’s housing initiatives and tourism regulations can be found through the Hawaii County Official Website and the Maui County Council. As the state navigates this transition, the balance between welcoming millions of tourists and preserving community integrity remains a central focus.
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