New State Study by DBEDT Declares Vacation Rentals Contributing to Housing Shortage!
Oahu is facing a 26,000 home shortage between 2015 and 2025 and the conversion of residential homes into vacation rentals has contributed to the problem according to Department of Business, Economic Development & Tourism.
Kailua residents have been saying for years that short-term rentals (B&B hotels and vacation rentals) are displacing our neighbors from our community and driving up long-term rental rates. The 36 page study stated “Another important driver of housing demand is the increase in the number of residential rental units being used as vacation rentals”.
Council member Ikaika Anderson is proposing to allow both vacation rentals and B&B hotels to proliferate in residential zoning. His Resolution 15-72 (Allows B&B hotels to be conforming in residential zoning) would allow 3975 hotel rooms in residential neighborhoods. 1325 of the rooms could be in located in Kailua. That would be the same as having the Royal Hawaiian Hotel, The Kahala Resort and the Turtle Bay Resort being located in Kailua.
Resolution 15-86 (allows vacation rentals to be conforming in residential zoning) has not determine how many hotels rooms will be allowed in residential zoning, but most predict it would double the number of hotel rooms in residential zoning. Clearly, Oahu can not afford to be losing any residential houses, apartments, cottages or rooms to any short-term rental proposals.
LINK TO REPORT: http://files.hawaii.gov/dbedt/economic/reports/2015-05-housing-demand.pdf