The biggest factor in the affordable rental housing shortage is not short term vacation rentals, it's the outsized US Military presence in the islands.

A significant share of housing in our residential neighborhoods goes to transient military families. As of May 2016, Hawaii had nearly 50 thousand active duty service members, tens of thousands with families living in off-base housing. Per capita, Hawaii has by far the highest number of active duty military in the country. This is one of the biggest factors in our housing shortage. 

Military families have also driven up the price of rental housing.  They are given between $2000 (single E1) and $4100 (senior officer with dependents) each month to spend on off-base housing. This is on top of their inflated Hawaii Cost of Living Allowance (CONUS COLA) of $215 - $707 per month, and other military pay and benefits.

Locals just can’t compete with 50,000 tenants who each get an extra $2200 to $4800 to spend on housing each month.