The state released its Hawaii Vacation Rental Performance Report for September, and the results were varied and somewhat lackluster. For example, there was more inventory, up 7% compared with last year, but that’s down 23% compared with pre-Covid. The prices were fascinating, too.
Demand for Hawaii vacation rentals sank 40%.
Since 2019, which is the last comparable year, demand has been down 40%, also down 5% compared with the atypical 2022 when demand soared after Covid.
What happened to Hawaii vacation rental nightly rates?
The average daily rate of vacation rentals is quite varied by location, while statewide, the average nightly rate in September was $260, down 8% compared with 2022 but up 34% compared with 2019.
Maui vacation rentals were largely offline in September 2023 due to the fire. The state confirmed that many West Maui vacation rentals were unavailable due to the wildfires. For the entire island, Maui vacation rental inventory was down 53% compared with 2019 and down 34% compared with last year. Demand sank 68% compared with 2019.
Rates on Maui were modest at $266 on average, which was down 20% compared with 2022 and 17% compared with 2019. Remember that, as with Hawaii hotels, you’ll add approx. 18% in taxes, plus any additional fees (which are highly variable). So that $266 becomes $315, plus fees.
Hawaii vacation rentals still represent a significantly better value proposition compared with Hawaii hotels, especially for longer stays. There are caveats to take into consideration, however.
Beat of Hawaii
Honolulu vacation rental prices are up compared with other islands. In spite of new regulations and the proposal for even more strict minimum stay rules, Honolulu still had the most vacation rental units available, +23% compared with last year and -8% compared with 2019.
Average daily Honolulu vacation rental rates were at $226, up 5% compared with last year and up 41% compared with 2019.
Big island vacation rentals had greater available units +26% vs. 2022 and -5% vs. 2019). Occupancy was just 45%, down 6% compared with last year and 14% compared with 2019.
Kauai vacation rental availability was +34% compared with 2022 and -9% compared with 2019. Kauai’s average daily rate was the highest by far of any island, $358. That was down 5% compared with last year but up 49% compared with 2019.
So, are Hawaii vacation rentals still a great deal or not?
In summary, Hawaii vacation rentals can still offer cost-sharing benefits, a more local experience, and advanced booking options, but they can come with hidden costs and potential issues that should be carefully vetted in advance, which may impact affordability and value for travelers. Some issues are the amenities not covered and quality control.
Hawaii vacation rentals – the good:
- Cost-sharing savings: Vacation rentals offer multiple bedrooms, a kitchen, and extra space compared to hotel rooms, making them cost-effective when sharing with family and friends.
- More local experience: Staying in a vacation rental allows visitors to experience Hawaii more like a local, providing a more authentic and immersive experience compared with hotels.
- Advance booking: Some vacation rentals can be booked up to 18 months in advance, which is especially helpful for planning trips during peak seasons and holidays.
Hawaii vacation rentals – the not-so-good:
- Hidden costs: Vacation rentals often come with significant extra fees, including highly variable cleaning and service charges, which can add up to the overall cost and make them less budget-friendly. Fees can make vacation rentals more expensive for shorter stays.
- Location, quality, and amenities: Cheaper Hawaii vacation rentals may compromise on location, amenities, and overall quality, leading to less desirable accommodations. Things you may take for granted in a Hawaii hotel, like air conditioning, may not be present at all in a vacation rental.
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