In a move aimed at addressing the growing concerns of housing affordability and availability in Hawaii, state regulators have announced new regulations targeting short-term rental properties. The new rules, which were implemented on February 22, 2026, are expected to have a significant impact on the state's booming vacation rental industry.Under the new regulations, property owners will now be required to obtain a special permit in order to operate a short-term rental property. The permits will be subject to strict requirements, including limits on the number of days a property can be rented out each year and restrictions on the size and type of properties that can be used for short-term rentals. Additionally, property owners will be required to pay a special tax on their rental income, which will go towards funding affordable housing initiatives in the state.The decision to implement these new regulations comes as Hawaii grapples with a housing crisis that has left many residents struggling to find affordable housing. The state has seen a sharp increase in the number of short-term rental properties in recent years, leading to concerns that these properties are driving up housing prices and squeezing out local residents.In a statement announcing the new regulations, Hawaii Governor, David Ige, emphasized the need to strike a balance between the state's thriving tourism industry and the need to protect the local housing market. "We recognize the important role that short-term rentals play in our economy, but we also understand the impact that they can have on our communities," Governor Ige said. "These new regulations are designed to ensure that our residents have access to affordable housing while still allowing for responsible growth in our tourism industry."Industry experts have expressed mixed reactions to the new regulations, with some applauding the state's efforts to address a pressing issue, while others voicing concerns about the potential impact on small property owners who rely on short-term rentals for income. Real estate analyst, Jane Smith, stated, "While these regulations may help alleviate the housing crisis in Hawaii, they may also have unintended consequences for small property owners who rely on short-term rentals to make ends meet. It will be important for the state to carefully monitor the impact of these regulations and make adjustments as needed."Overall, the new regulations mark a significant step towards addressing Hawaii's housing crisis and preserving the local housing market. State regulators are hopeful that these measures will help strike a balance between the needs of residents and the demands of the tourism industry