Mayor Kirk Caldwell is proposing a rezoning bill that would permit short-term tourist rentals (STRs) islandwide. Currently permitted only in resort districts, bed and breakfasts would be allowed in every house and apartment that has a homeowner’s property tax exemption. In addition, up to 4,000 transient vacation units, units where the owner is not present, would be allowed in apartments and condominiums. Adoption of this bill, spurred by internet technology, would be a disaster for the island with negative impacts on housing supply, the economy and residents’ quality of life.
It is contradictory that the mayor has repeatedly stated Oahu is currently facing a housing shortage and housing cost crisis, while proposing to transform thousands of houses and apartments into hotel-like businesses; even two- and three-story walk-ups that are the most affordable for local residents would be under siege. According to a state Office of Planning panel, $1 billion will be needed in the next 10 years to address the shortage of affordable rentals. Statewide, the Legislature has indicated a need for 22,500 affordable rental homes by 2026, over 9,000 on Oahu. Taking many thousands of units out of the supply is unconscionable.
Tourist areas worldwide (except in some areas that do not have hotels) are fighting back against STRs. For example, in July, New York City imposed strict limits and stronger enforcement on internet platforms and on STRs for both economic and housing crisis reasons. They have found that STRs have caused a housing supply loss, as well as an increase in residents’ long-term rents. According to a CNBC report, Florida’s Miami Beach has banned rentals less than six months long. When caught, renters are required to leave the unit the next day.
It is well known that tourism is our primary economic base. STRs represent a long-term plan for economic decline rather than economic growth. A mainstay of the economy has always been tourists staying in hotels that employ thousands of local residents with union wages and especially benefits that help sustain economic growth and quality of life. In the 10-year period from 2008 to 2017, reports the state Department of Business, Economic Development and Tourism, although there has been an increase in the number of tourists from over 6 million to over 9 million, their per capita inflation-adjusted spending has actually decreased. In that period, adjusted annual per capita spending by tourists actually decreased from $1,986 to $1,801. Continued decreases in spending will not help grow our economy.
As an urban planner, I am very much aware that zoning was initially developed to protect residential areas from incompatible uses. More STRs will have a negative impact on our residential quality of life. These visitor lodging businesses change the character of neighborhoods by replacing local residents with nonresidents. The social fabric, stability and safety of neighborhoods and communities are undermined. Nonresident visitors have little interest in public agencies, schools or the welfare of the citizenry. Literally they are here today and gone tomorrow without engaging in the activities that would weld and strengthen neighborhoods.
Safety is also an issue. Greater anonymity allows more criminals to move about unnoticed; more residents than ever before are keeping their doors locked. Katherine Lugar as president and CEO of the American Hotel and Lodging Association, said, “Airbnb’s illegal hotels are a growing problem in communities across the country, flaunting basic safety and security standards, zoning rules and taxes while pushing affordable housing options further out of reach.”
Internet technology has enabled these STRs to proliferate. Let’s not sacrifice our housing supply, economy and neighborhoods on the altar of technology.
Kailua resident Chuck Prentiss is a retired urban planner and former executive secretary of the Honolulu Planning Commission.
