video from July 2024
By Dan Polimino, KW Big Island | The Hawai‘i Team
One of the most common questions I get is:
“Dan, what are the best islands in Hawai‘i to buy a short-term vacation rental?”
Let’s break it down.
First, What to Avoid Right Now
Let’s start with where I’d recommend not buying at the moment: Maui.
As much as I love every part of Hawai‘i, the situation on Maui is currently complicated. Local leaders—including the mayor, the governor, and the County Council—are all pushing hard to create more housing for survivors of the Lahaina fire. While that’s an understandable and noble goal, their approach includes an aggressive effort to eliminate short-term vacation rentals on the island entirely.
In my opinion, this effort is likely to face serious legal challenges, and I believe property rights will ultimately prevail. But for now, it creates a lot of uncertainty—not ideal if you’re trying to invest wisely.
Next up is O‘ahu, specifically Honolulu. Mayor Blangiardi has been leading a similar crusade against short-term rentals. Although an earlier effort failed in court, the pressure hasn’t let up. If you’re looking for an island with less regulatory drama, I’d steer clear of Honolulu too.
So, Where Should You Look?
That brings us to the two most promising islands for short-term vacation rentals right now:
Kaua‘i and the Big Island (Hawai‘i Island).
Wet Side vs. Dry Side
In both cases, climate matters. You’ll generally want to invest on the dry side of the island where sunshine is more consistent—this tends to appeal more to vacation renters.
- Kaua‘i: The Poʻipū side is dry and popular with tourists. The Princeville side is beautiful but tends to be wetter.
- Big Island: The Kona coast is the dry side and ideal for short-term rentals. The Hilo side, while lush and stunning, is also much wetter and rainier.
Know the Resort Zones
On the Big Island’s west coast, there are six major resort zones between Kohanaiki and Mauna Lani. Each has its own rules about rentals:
- No short-term rentals: Kohanaiki, Kūki‘o
- Short-term rentals allowed: Hualālai, Four Seasons, Waikōloa Beach, Mauna Lani, Mauna Kea
Don’t worry about memorizing it all—we’ve got you covered. Our team knows these areas inside and out and can guide you strategically based on your goals.
What About Pricing?
Kaua‘i and the Big Island are surprisingly comparable in price when it comes to short-term rental properties. Your decision will likely come down to personal preference—scenery, vibe, travel convenience, and investment style.
We’re Here to Help
If you’re serious about buying a short-term vacation rental in Hawai‘i, now’s the time to explore Kaua‘i and the Big Island. We’d be honored to guide you through the process.
📍 Contact The Hawai‘i Team:
🌐 thehawaiiteam.com
📞 808-913-0899
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Looking forward to helping you make your Hawaiian property dreams a reality!