Exploring the Hybrid Model of Home Ownership in Hawaii

Let’s talk about the different types of home ownership available in Hawaii. Today, I want to expand on one option in particular—the hybrid model—and why it may be the right fit for many buyers.

Three Types of Home Ownership

When it comes to buying property in Hawaii, there are generally three approaches:

1. Second Home Only: You purchase a home and use it solely as your personal getaway. When you’re not here, it simply sits vacant until your next visit.
2. Short-Term Vacation Rental (STVR): You buy a property and rent it out on a short-term basis—less than 30 days at a time—to generate income.
3. The Hybrid Model: You purchase a second home and rent it out for one to three months at a time.

Why Consider the Hybrid Model?

The hybrid option exists because short-term vacation rentals come with significant restrictions. STVRs are only allowed in designated coastal zones. If the home you want falls outside those zones, you can’t legally operate it as a short-term rental. This limits your choices if your goal is to generate income.

The hybrid model opens the doors to more locations—whether it’s Waimea, Waikoloa Village, or up the mountain in Holualoa. Since the legal definition of a short-term rental is 30 days or less, anything 31 days or longer is not considered a short-term rental. That means you don’t need to be in a designated zone, and you don’t need a STVR permit.

Growing Popularity Post-Pandemic

Here’s what’s new: before the pandemic, there wasn’t much demand for one- to three-month rentals. Most visitors stayed for shorter vacations. But post-pandemic, travel patterns have changed. Many people now want to spend extended time in Hawaii, working remotely or enjoying a longer stay.

Property managers across the island are embracing this shift. Several have begun building a portfolio of homes specifically marketed as one- to three-month rentals. This model provides steady rental opportunities while giving buyers more freedom in choosing where to purchase.

Is the Hybrid Model Right for You?

If you want the flexibility of owning a second home in Hawaii but also want to generate income, the hybrid model may be the solution. It gives you access to a wider range of properties without the restrictions of short-term vacation rental zones—while still meeting the growing demand for longer stays.

Interested in learning more? Contact The Hawaii Team today to explore whether this model could work for your Hawaii homeownership goals.

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