New Short-Term Rental Laws and Long-Term Rental Market Update for Oahu’s 2025

Change is in the air for Hawai‘i’s rental landscape, and with change comes opportunity.

New Short-Term Rental Laws

Beginning September 2025, most residential properties on Oʻahu must be rented for 90 days or more unless they are in designated resort zones (like Waikīkī , Ko Olina, Turtle Bay) and properly registered. While this limits nightly rentals, it also creates exciting new possibilities:

• More stability for neighborhoods with longer-term tenants.
• Clearer rules for property owners, no more gray areas.
• Added value for homes in resort zones, which can still legally offer shorter stays.

The state has also slightly increased the lodging tax, with the extra revenue going toward beach restoration, wildfire prevention, and climate resilience, investments that help protect property values long-term.

Aerial view of beautiful Oahu coastline at Turtle Bay Northshore, Oahu

Oʻahu’s Rental Market Today

The long-term rental market on Oʻahu remains strong and steady:

• Honolulu average rent is about $2,944/month, with steady growth.
• Kailua and beachside areas see premium demand, with two-bedrooms renting over $3,000/month.
• Luxury rentals are especially active, showing strong returns for owners.
• Condos have more inventory now, which means more choice for renters and negotiating room for buyers.

Ko’Olina aerial views, Oahu, Hawaii

A Positive Outlook for Owners & Renters

For property owners, these changes bring clarity and strengthen the value of resort-zoned investments. For long-term landlords, demand remains strong, with steady rental growth and low vacancy rates. For renters, an increase in available condos means more options and competitive pricing in some areas.

In short, Hawai‘i’s housing landscape is adjusting to balance community, sustainability, and opportunity. With steady rental demand, growing interest in long-term living, and clear rules, it’s a positive moment to own, rent, or invest in Oʻahu real estate. I look forward to continuing to support clients in making educated choices, knowing that with every change comes opportunity.