The pandemic-era vacation home boom has collapsed in Hawaiʻi, according to a new analysis by SellMyTimeshareNow.

The analysis found that vacation-home purchases financed with a mortgage fell 77.8% in Hawaiʻi between 2021 and 2025, from 2,156 purchases to just 478 — placing the state second in the nation for the steepest percentage decline in second-home buying activity.

Nationally, the picture is similarly grim for the vacation home market. US purchases dropped 65.8% over the same period, falling from 257,549 to 88,158 — a near-collapse of the market that surged during the remote-work years when buyers rushed to turn dream destinations into permanent or part-time residences.

For Maui specifically, the Kahului metro area recorded an 85.2% drop in vacation-home purchases — among the sharpest declines of any market in the country, outpacing major leisure destinations like Las Vegas (-79.4%), Orlando (-79.4%), and Miami (-78.8%).

Hawaiʻi’s vacation-home market remains substantial in relative terms despite the decline. Vacation homes account for 4.9% of all mortgage originations in the state in 2025, and the median value of mortgaged vacation homes in Hawaiʻi sits at $990,000 — a figure that reflects the desirability of island properties and the affordability barriers that helped push up demand. About 5.6% of Hawaiʻi’s housing stock is classified as seasonal, recreational or occasional use.

The SellMyTimeshareNow report notes that because vacation homes are discretionary purchases, the category serves as a leading indicator for broader economic conditions. Sharp declines in second-home buying may reflect shifting consumer confidence, affordability pressures, and reduced financial flexibility — even among higher-income households that traditionally drive resort and leisure real estate markets.

The analysis examined changes in vacation-home mortgage originations since the height of the pandemic housing boom, ranking states and metro areas by percentage decline. The full report covers nearly 900 metropolitan and micropolitan areas, as well as all 50 states.

The complete analysis is available at sellmytimesharenow.com.