The Big Island of Hawai‘i banned short-term rentals outside of designated “resort zones” earlier this year. Now, the neighboring island of Oahu is unfortunately following in the Big Island’s footsteps.
As of August 1, Honolulu home-sharers are no longer able to advertise short-term rentals of fewer than 30 days without incurring significant fines. And starting in October 2020, the city will allow 1,700 short-term rentals in designated areas, but homeowners will have to vie for a spot via a government lottery, and they’ll be required to live on the property in order to rent. Anyone else wishing to rent their home to short-term guests will be out of luck—and the consequences could be devastating to the island’s economy. The Oahu Alternative Lodging Association estimates Bill 89 will cause a loss of between 50,000 and 80,000 visitors per month.
A heavy-handed new law isn’t needed to deal with the nuisances that can arise from home-sharing, Goldwater Institute Executive Vice President Christina Sandefur writes on In Defense of Liberty. “Honolulu officials can protect property rights, embrace economic opportunity, and regulate effectively if they focus on eliminating noise, traffic, and pollution, regardless of whether those problems are caused by an overnight guest or the homeowner himself. But so long as the city enforces unenforceable bans, it can expect economic downturns, frustrated homeowners, and a litany of lawsuits.”
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