Maui vacation rental supply still up YTD 2022, despite inactive units in Lahaina

In December 2023, Maui County had more available rental unit nights than any other county in the state, at 233,000 available nights this past month, per the Department of Business, Economic Development & Tourism. This comes despite the fact vacation rental units in Lahaina continued to be inactive due to the Aug. 8 Maui wildfires.

According to the data, occupancy of vacation rental units in Maui County has remained about 7% below what it was in December of 2022, and about 24% less than December of 2019. Vacation rental unit night supply and unit demand are down year-to-date from 2019. The average daily rate (ADR) was up to $394 this past December.

Maui County data from the report includes the following:

• Maui County’s rental supply was 233,300 available unit nights (+11.3% vs. Dec. 2022, -20.4% vs. Dec. 2019);
• Unit demand was 127,900 unit nights (-1.5% vs. Dec. 2022, -44.7% vs. Dec. 2019);
• Resulting in 54.8% occupancy (-7.1 percentage points vs. Dec. 2022, -24.2 percentage points vs. Dec. 2019) and average daily rate (ADR) at $394 (+0.8% vs. Dec. 2022, +41.6% vs. Dec. 2019)

A vacation rental is defined as the use of a rental house, condominium unit, private room in private house, or shared room or space in a private room. It is important to note that unlike hotels, vacation rentals are not necessarily available year-round or each day of the month and often accommodate a larger number of guests than traditional hotel rooms.

Maui County hotels recorded higher ADR ($612) and occupancy levels (68.7%) compared to its vacation rental units, according to a report from earlier this month, in which Maui County hotels led all counties in ADR and revenue per available night.

Wailea/Kīheivacation rentals recorded both supply and demand levels that were higher than the previous year but lower than 2019.

The following data was provided for Wailea/Kīhei:

• Rental supply was 106,264 (+17.7% vs. Dec. 2022, -21.0% vs. Dec. 2019)
• Unit demand was 60,947 (+12.8% vs. Dec. 2022, -45.3% vs. Dec. 2019)
• Resulting unit occupancy was 57.4% (-2.5% vs. Dec. 2022, -25.4% vs. Dec. 2019)
• Unit ADR was $333.79 (-1.2% vs. Dec. 2022, +25.7% vs. Dec. 2019)

Lahaina/Kāʻanapali vacation rentals recorded higher levels of supply but lower levels of demand than in 2022, with both supply and demand figures still lower than 2019.

The following data was provided for Lahaina/Kāʻanapali:

• Rental supply was 99,476 (+5.5% vs. Dec. 2022, -19.3% vs. Dec. 2019)
• Unit demand was 53,892 (-11.3% vs. Dec. 2022, -42.1% vs. Dec. 2019)
• Resulting unit occupancy was 54.2% (-10.3% vs. Dec. 2022, -21.3% vs. Dec. 2019)
• Unit ADR was $492.76 (+5.3% vs. Dec. 2022, 56.8% vs. Dec. 2019)

Across Maui in December, unit ADR had increased from December 2022 levels with the exception of a negative change in ADR in the Kula/Makawao area (-6.5%).

Statewide, this past month, vacation rentals reported increases in supply and demand, with lower ADR and occupancy when compared to December 2022. In comparison to pre-pandemic December 2019, ADR was higher in December 2023, but vacation rental supply, demand and occupancy were lower.

For the full year of 2023, Hawai‘i vacation rental supply was 8.8 million unit nights (+17.2% vs. 2022, -14.5% vs. 2019) and demand was 4.9 million unit nights (-0.7% vs. 2022, -35.5% vs. 2019). The average daily unit rate for 2023 was $301 (+1.8% vs. 2022, +45.1% vs. 2019). Statewide vacation rental occupancy for 2023 was 55.9% (-15.3 percentage points vs. 2022, -24.6 percentage points vs. 2019). In comparison, statewide hotel ADR for 2023 was $378 and occupancy was 74.7%.

The full report is available online.