Kona Real Estate Blog | Lance Owens, LUVA Real Estate

State Farm Reportedly Stops Renewing Hurricane Coverage for Some Hawaii Rental Homes

Wed, 27 May 2026 08:53:21 GMT

What Hawaii property owners, mainland investors, and buyers should understand about changing insurance requirements, single-wall homes, and financing concerns.

A recent Hawaii News Now story caught the attention of many Hawaii property owners, especially investors and owners of older homes. According to the report, State Farm will reportedly stop issuing or renewing hurricane insurance coverage for certain single-wall homes in Hawaii that are used as rentals.

Hawaii Insurance Commissioner Scott Saiki noted in the report that spreading risk among multiple insurance carriers may actually help stabilize the overall market instead of concentrating exposure with a single company. That may be true from the insurance industry side of things, but for many property owners, especially mainland investors who are not watching local Hawaii news every night, this could still become a very real issue.

Many older homes in Hawaii were built with single-wall construction and remain completely legal, functional, and important parts of Hawaii’s housing inventory. These are not necessarily unsafe homes or “problem properties.” Many are long-standing kama‘aina homes, plantation-era homes, or practical workforce housing that have served Hawaii families for generations. They have been insured for decades without issue.

At the same time, insurance companies nationwide have become far more cautious following major wildfire losses, hurricanes, rising rebuilding costs, and increasing pressure from the reinsurance market. Hawaii is not isolated from those broader market shifts.

The bigger issue here is not panic, it is preparation.

Insurance availability can directly affect:

financing eligibility
monthly ownership costs
rental cash flow
resale value
and the future buyer pool for a property

Many mainland buyers and investors simply do not realize how different Hawaii property ownership can be compared to many mainland markets. In Hawaii, issues such as single-wall construction, lava zones, hurricane exposure, oceanfront corrosion and erosion, roof age, and rental use can all affect underwriting decisions.

Even if replacement coverage remains available, owners could still face:

higher premiums
stricter underwriting requirements
reduced coverage options
or financing complications with lenders

And this is where working with experienced LOCAL lenders becomes extremely important.

Not all lenders understand Hawaii’s unique insurance environment. A lender sitting in another state may not fully understand issues involving single-wall homes, lava zones, hurricane coverage requirements, leasehold property, or evolving Hawaii underwriting concerns. Local lenders deal with these situations every day and can often help identify potential issues much earlier in the process before they become closing problems.

This is especially important because mortgage lenders require hurricane insurance coverage on financed properties.

Hawaii still has insurance alternatives available, although options and underwriting requirements may continue evolving. Programs such as HHRF and HPIA exist for certain difficult-to-insure properties, including some homes located in higher lava risk zones, but many owners may still face rising costs or fewer available insurance options moving forward.

At this point, this does not mean single-wall homes suddenly become uninsurable or undesirable. Hawaii still has many older homes that continue to provide important housing opportunities and investment potential. But this situation does reinforce the importance of understanding insurance early when buying, selling, or investing in Hawaii real estate.

For owners who may be affected, now may be a good time to:

review current policies
confirm renewal terms
speak with local insurance professionals
and understand what options may exist if underwriting requirements change

As Hawaii’s insurance market continues evolving, local knowledge matters more than ever.

If you are thinking about buying, selling, or investing in Hawaii Island real estate, especially older homes or rental property, it is more important than ever to work with experienced local professionals who understand Hawaii’s unique market conditions, financing environment, insurance challenges, and property types here on the islands.

Aloha and Mahalo,

Lance Owens RB-24133, Broker In Charge
LUVA Real Estate, (808) 936-8383, KonaHomeTeam.realestate

Ocean-View Hali‘i Kai Villa at Waikōloa Beach Resort

Tue, 19 May 2026 00:36:03 GMT

Ground-floor golf course frontage, private garage, turnkey rental use, and Ocean Club amenities on the Kohala Coast

An ocean view changes everything.

At Hali‘i Kai in Waikōloa Beach Resort, this ground-floor two-bedroom, two-bath villa gives you the kind of setting buyers come to Hawai‘i for: golf course frontage, ocean views from the lanai, and access to one of the best resort amenity centers on the Kohala Coast.

This is the Mahana floorplan, designed with the bedrooms separated by the main living area for better privacy. The kitchen features stainless-steel appliances, granite counters, and rich wood cabinetry, opening into a comfortable living space that flows out to the covered lanai. From there, you can look across the fairway toward the ocean, enjoy the trade winds, and use your own BBQ since grills are allowed.

That combination is what makes this villa stand out. You get the ease of a ground-floor unit, the view buyers want, and a private garage, which is a rare and valuable feature in resort condo ownership. For a second-home buyer, that garage is more than just parking. It gives you space for beach gear, golf clubs, owner storage, and the practical things that make coming and going easier.

Hali‘i Kai is also known for its Ocean Club, and that is a big part of the lifestyle here. Owners and guests enjoy a lagoon-style pool with waterfalls, a sand-bottom spa, oceanfront fitness hale, and a private bar and grill overlooking the Pacific. It feels like a true resort setting without having to leave the community.

The location inside Waikōloa Beach Resort adds another layer of convenience. Golf, oceanfront walking trails, Kings’ Shops, Queens’ Marketplace, dining, and beach access are all nearby. Whether you are here for a few weeks at a time or using the property as a vacation rental when you are away, the area is easy for both owners and guests to enjoy.

This villa is currently in an active short-term rental program and is being sold turnkey. That gives a buyer a cleaner path into ownership, especially if the goal is to enjoy the property personally while using rental income to help offset ownership costs. Rental income is never guaranteed and should always be reviewed carefully, but having a turnkey, active rental setup already in place is a meaningful advantage.

For the right buyer, this is a strong Hali‘i Kai opportunity: ocean view, golf course frontage, private garage, ground-floor convenience, Ocean Club amenities, and short-term rental use in one of the Big Island’s most desirable resort areas.

If you are comparing ocean-view resort condos on the Kohala Coast, I can help you look beyond the photos and understand the details that matter: view quality, rental appeal, HOA structure, garage value, location within the complex, short-term rental considerations, and long-term resale strength. If this Hali‘i Kai villa sounds like the kind of Hawai‘i second home you have been looking for, reach out and I’ll help you take a closer look.

5 Acres in Kiʻilae Farms: South Kona Acreage Near Honaunau Bay and Kealakekua Bay

Mon, 18 May 2026 20:15:21 GMT

Our new Kiʻilae Farms listing offers privacy, county water, power availability, fencing, and rare access to one of South Kona’s most treasured coastal areas.

Kimi and I are proud to bring this 5-acre Kiʻilae Farms property to market in Captain Cook, one of the most beautiful and culturally rich areas on Hawaiʻi Island’s South Kona coast.

This is not just another vacant land listing. This is a private 5-acre flag lot in a gated community near Kiʻilae Bay, with space, privacy, and access to some of the most treasured ocean and cultural destinations in Hawaiʻi.

For buyers who have been looking for South Kona acreage, this property checks a lot of important boxes. It is fully fenced, has a county water meter installed, water to the northwest corner of the lot, and power available with no SSPP cost share. Those details matter. On Hawaiʻi Island, land is not just about the view. Water, power, access, surveys, building guidelines, and long-term usability are what separate a dream property from a complicated one.

Kiʻilae Farms sits near Honaunau Bay, also known as Two Step, one of the most recognized snorkeling areas on the island. Clear water, reef life, and easy ocean access make this part of South Kona special. Kealakekua Bay is also nearby, a protected Marine Life Conservation District known for its natural beauty, marine life, and deep historical significance.

Just down the road is Puʻuhonua O Hōnaunau National Historical Park, one of Hawaiʻi Island’s most important cultural sites. The 1871 Trail, part of the Ala Kahakai National Historic Trail, can be accessed from the lower part of the community and follows the dramatic lava coastline and ancient Hawaiian pathways. This is the kind of location where the land, ocean, and history all come together.

Everyday conveniences are also within reach. Kealakekua Ranch Center is just minutes away for groceries, hardware, and local dining. Ellison Onizuka Kona International Airport is approximately 50 minutes away, depending on traffic and route. That balance of privacy and access is one of the reasons South Kona acreage continues to appeal to buyers who want room to breathe without being completely disconnected.

The property itself offers a strong foundation for a future homesite. The listing includes a topographic survey completed by Wes Thomas on May 24, 2022. An Archaeological Preservation Study and Plan was performed for the subdivision, and no sites were identified on this lot. Design guidelines are available, and the building restrictions are relatively minimal, with a 1,750-square-foot minimum home size and a 30-foot maximum height.

For buyers considering land in Hawaiʻi, those are not small details. A beautiful parcel can become expensive quickly if water, power, access, surveys, or archaeological questions are unresolved. That is why Kimi and I always encourage buyers to look past the photos and understand what it will actually take to use the property.

Here are a few of the key highlights of this Kiʻilae Farms listing:

5-acre flag lot in a private gated community

Fully fenced

County water meter installed

Water available to the northwest corner of the lot

Power available with no SSPP cost share

Minimum home size of 1,750 square feet

Maximum building height of 30 feet

Topographic survey completed by Wes Thomas on May 24, 2022

Archaeological Preservation Study and Plan completed for the subdivision, with no sites identified on this lot

Design guidelines available for review

The lifestyle side of this property is easy to understand. South Kona has a slower, more grounded feel than many other parts of the island. You are close to ocean access, cultural sites, coffee country, small local businesses, and some of the most scenic coastline in Hawaiʻi. But the practical side is just as important. This property already has several of the major land-buying questions addressed, which gives buyers a better starting point as they evaluate whether it fits their plans.

If you are looking for acreage in Captain Cook, a future homesite in South Kona, or a private gated-community setting near Honaunau Bay and Kealakekua Bay, this Kiʻilae Farms property deserves a close look.

Kimi and I would be happy to walk you through the property details, design guidelines, survey information, water and power notes, and what buyers should understand before writing an offer on land in Hawaiʻi.

The Boogie Board Was Born on Aliʻi Drive, and That Says a Lot About Kona Living

Sat, 16 May 2026 19:26:24 GMT

Tom Morey’s simple foam invention at Waiʻaha, better known as Honl’s Beach, became a worldwide beach icon. For Kona buyers, it is also a reminder that Aliʻi Drive is not just a road. It is part of Hawaiʻi surf history.

Most people know Aliʻi Drive for oceanfront condos, sunset walks, beach parks, surf breaks, coffee shops, and the easy Kailua-Kona lifestyle. But one of the best stories tied to this stretch of coastline is something many visitors and even some residents may not realize: the modern boogie board was born right here in Kailua-Kona.

In 1971, Tom Morey was living near Waiʻaha, the beach many people know today as Honl’s Beach, along Aliʻi Drive. Morey was already a surfer, inventor, musician, and creative thinker. Using a piece of polyethylene foam, an electric carving knife, newspaper, and a household iron, he shaped what became the first modern boogie board. He paddled it out into the surf at Waiʻaha, caught a wave, and helped create a sport that would eventually spread around the world.

That is the kind of Kona story I love. It was not created in a boardroom. It was not overplanned. It came from someone living by the ocean, looking at the waves in front of him, and trying something different.

And that is where the real estate connection comes in.

When people look at condos and homes along Aliʻi Drive, they often start with the obvious questions. How many bedrooms? What is the view? Are short-term vacation rentals allowed? What are the HOA fees? Is it leasehold or fee simple? Those questions matter, especially in Kona. But Aliʻi Drive properties also come with something harder to measure: a direct connection to Kona’s ocean lifestyle.

This coastline is not generic. Honl’s, Magic Sands, Kahaluʻu, Kailua Bay, and the small shoreline access points along Aliʻi Drive each have their own history, rhythm, and local following. Some buyers want to be close to surf. Some want walkability to town. Some want sunset views. Some want a condo that works as a second home or vacation rental. Others simply want to be near the water because that is what brought them to Hawaiʻi in the first place.

Tom Morey’s story is a good reminder that Kona’s value is not only in the real estate. It is in the lifestyle around it.

That does not mean every Aliʻi Drive condo is the same. Far from it. One complex may have strong ocean views but higher maintenance costs. Another may have better walkability but less parking. Some allow vacation rentals, some do not. Some have aging infrastructure, insurance challenges, concrete spalling concerns, wastewater questions, or HOA issues that buyers need to understand before they fall in love with the view.

That is why local knowledge matters.

Buying a condo in Kona is not just picking a unit online. It means understanding the building, the shoreline, the rental rules, the maintenance history, the HOA budget, the insurance situation, and the neighborhood feel. A condo across from the ocean may look simple from the outside, but the details behind the scenes can make a big difference.

The boogie board was born from a simple idea on Aliʻi Drive. But like most things in Hawaiʻi real estate, the story beneath the surface is what makes it interesting.

Today, when you drive past Honl’s Beach or walk along Aliʻi Drive, it is worth remembering that one of the most recognizable beach inventions in the world started right here in Kona. That is part of what makes this coastline special. It is not just a place to own property. It is a place with history, creativity, surf culture, and a lifestyle people come from all over the world to experience.

If you are thinking about buying or selling a condo along Aliʻi Drive, work with someone who understands more than the square footage. Kona real estate is local, and the story behind each building, shoreline, HOA, and neighborhood matters. Lance Owens, Broker In Charge at LUVA Real Estate, has been helping buyers and sellers in West Hawaiʻi since 2004. Call Lance at (808) 936-8383 or visit KonaHomeTeam. RealEstate

I Want to Buy a Condo in Kailua-Kona. What Should I Know First?

Fri, 15 May 2026 18:36:56 GMT

A local look at HOA fees, rental rules, insurance, leasehold issues, and the condo differences buyers should understand before buying in Kailua-Kona.

If you are thinking about buying a condo in Kailua-Kona, the first question is simple: how are you going to use it?

Primary residence, second home, or short-term vacation rental?

That answer affects financing, rental rules, maintenance costs, insurance, taxes, and which condo complexes may or may not make sense for you.

I have worked with buyers on Hawaii Island for more than 20 years, and Kona condos are not all the same. Two units can look similar online, but once you look at financing, HOA fees, insurance, rental rules, and how the complex is operated, they can be very different purchases.

Start With How You Plan to Use the Condo

Kailua-Kona gives buyers a lot of options, but not every condo works for every purpose.

A condo that works great as a second home may not work as a vacation rental. A condo that works for a cash buyer may be more complicated for a buyer who needs financing.

That is why I do not start with, “What is the cheapest condo near the ocean?” I start with, “What are you trying to accomplish?”

Cash or Financing Makes a Big Difference

The next question is whether you are paying cash or financing the purchase.

Some Kailua-Kona condos are fairly straightforward to finance. Others may fall into what we commonly refer to in Hawaii as “condo hotel” territory. That is where things can get more complicated.

A simple rule of thumb is this: does the complex have a check-in desk? If it does, that can be a sign that lenders may look at the project differently. But like most things in real estate, it is not always that simple. There are other factors that can affect whether a lender treats a property as a condo hotel, including occupancy, rental use, management structure, and other project details.

That does not mean the condo is bad. It just means the buyer needs to understand the financing before falling in love with the unit.

For example, Kanaloa at Kona is a well-known complex in the Keauhou area that is run with a management structure and has a check-in desk. That can change the financing conversation. Again, that is not a warning against the complex. It just means you need to know what you are buying and how your lender will view it.

Casa de Emdeko is another example where the conversation may be different. There, the issue may be less about a check-in desk and more about the mix of owner occupancy versus rental use. These are the kinds of details that do not always jump out at buyers when they are scrolling through listings online.

Short-Term Rentals Are Not Automatic

If your plan is to rent the condo out short term, do not assume you can just buy any condo and start renting it nightly.

Some condos are already approved or legally operating as short-term vacation rentals. Others may not be. Some may have county rules, zoning issues, association rules, or registration requirements that affect what you can and cannot do.

This is one of the biggest mistakes buyers make. They see a condo online, run some rental numbers in their head, and assume the income will work. Before you make that assumption, confirm whether short-term rental use is allowed, whether the unit is already properly registered if required, and whether the association has any rental restrictions.

A condo that works as a second home may not work as a vacation rental. A condo that worked for one owner may not automatically work the same way for the next buyer.

Vacation Rental Income: Offset, Not Jackpot

One thing I explain early is that owning a vacation rental in Hawaii is not the same as buying an investment rental in many areas on the continent.

I often meet buyers who come in thinking they are going to make a lot of money owning a vacation rental in Kailua-Kona. In most cases, that is not the right way to look at it.

There is only one Hawaii, and owning here is special. But the cost of ownership is also different. Between purchase price, maintenance fees, insurance, property taxes, management fees, repairs, utilities, cleaning, furnishings, and downtime between guests, the more realistic goal is usually to offset some of your ownership cost, not create a cash machine.

That does not mean a vacation rental condo is a bad idea. It can be a great fit for the right buyer. But I would rather have that conversation upfront than have a buyer build their plans around numbers that may not hold up in the real world.

If your goal is to enjoy the condo, use it when you are here, and rent it when you are not, that can make sense. If your goal is pure cash flow, we need to look very carefully at the numbers before you move forward.

Maintenance Fees Are Not All the Same

One of the first things buyers notice with condos in Kailua-Kona is the maintenance fee. Sometimes they see the number and immediately think it is too high.

Maybe it is. Maybe it is not.

You have to look at what the fee actually includes.

Most condo maintenance fees cover the obvious things, such as grounds maintenance, pool maintenance, common area upkeep, trash, sewer, water, and the building’s master insurance policy. That insurance can be expensive, especially when the building is near the ocean.

Electricity is usually not included, although there are exceptions. Some complexes may include cable or other services. Some include more than buyers realize.

Casa de Emdeko is a good example. In that complex, the maintenance fee can include air conditioning and hot water through the building systems. That matters. Hawaii has some of the highest electricity costs in the country, and it is not unusual for a two-bedroom condo to have an electric bill in the $300 to $400 range. If part of your cooling cost and hot water cost is covered through the maintenance fee, that can change the real monthly cost of ownership.

That is why you cannot compare maintenance fees by the number alone. A lower fee is not always better, and a higher fee is not always worse. You need to know what is included, what is not included, and what costs you will still have separately.

Fee Simple vs. Leasehold

Most condos on Hawaii Island are fee simple, which means you own the unit and your share of the common elements. There are not nearly as many leasehold properties here as buyers may see on some other islands, but they do exist.

With a leasehold condo, the purchase price may look lower, but there is usually an additional lease rent payment on top of the regular maintenance fee and other ownership costs. The lease also has an expiration date, and in some cases there may be future lease rent renegotiation dates.

That can affect financing, resale value, monthly cost, and long-term ownership risk.

This topic deserves its own full article, but the simple advice is this: do not compare a fee simple condo and a leasehold condo by purchase price alone. Make sure you understand the full monthly cost, the lease terms, the expiration date, and what happens at renegotiation.

Kailua Side vs. Keauhou Side

When buyers ask me which Kailua-Kona condo complex is “best,” my answer is usually, “Best for what?”

There is no one-size-fits-all answer.

As a loose rule of thumb, condos closer to the Kailua side of Alii Drive often feel more in-town, convenient, and compact. You may be closer to restaurants, beaches, shopping, and the activity of Kailua-Kona. For some buyers, that is exactly what they want.

As you head farther south toward the Keauhou end of Alii Drive, many complexes tend to have more of a resort-style feel. You may find more greenery, larger grounds, multiple pools, tennis or pickleball courts, volleyball, and a quieter setting.

That is not an absolute rule, but it is a helpful way to think about the difference. Some buyers want walkability and convenience. Others want space, amenities, and a more relaxed feel. Both can be right, depending on the buyer.

Oceanfront Is Beautiful, But Salt Air Is Undefeated

Everybody loves the idea of oceanfront. I get it. The view, the sound, the sunsets, the whales in season, it is hard to beat.

But oceanfront ownership comes with a reality check: salt air is tough on everything.

If you buy new appliances near the ocean, I half-jokingly tell people to consider the extended warranty. The salt spray and moisture in the air can be hard on appliances, fixtures, lanai railings, windows, doors, plumbing components, and anything metal.

Before real estate, I worked with Jaguar and Ferrari in Honolulu. Many of those owners lived oceanfront, and you could see what the salt air did to their vehicles. Beautiful homes, beautiful cars, and the ocean still won a few battles.

That does not mean you should avoid oceanfront. It just means you should understand what you are buying. Oceanfront can be incredible, but it is not maintenance-free. Budget accordingly and pay attention to the condition of the building, not just the view from the lanai.

Read the Condo Documents Carefully

Once you are in escrow, the condo documents matter.

Buyers should carefully review the minutes, budgets, reserve study, house rules, pet rules, rental rules, insurance information, and any pending or recent assessments. These documents tell you how the association is being run and what issues may be coming down the road.

In the current insurance climate, I would pay very close attention to anything related to insurance. Look at premium history, deductibles, coverage changes, and whether the association has been discussing future increases or assessments.

We have seen some small dips in insurance premiums in certain situations, but overall, insurance is still one of the biggest issues affecting condo ownership in Hawaii. Buyers need to understand that before removing contingencies.

Use a Local Lender and a Local REALTOR

If there is one thing I would tell buyers before they fall in love with a Kailua-Kona condo online, it is this: understand your financing options early, and use a local lender.

Hawaii has different nuances that many mainland lenders are not familiar with. Condo hotels, lava zones, tsunami zones, sea level rise, insurance issues, association documents, and project-specific financing concerns can all affect the transaction.

A lender who does not regularly work in Hawaii may not know what questions to ask until late in the process. That can create delays, frustration, or worse, a deal that falls apart after the buyer has already spent time and money.

A local REALTOR should know more than what is written in the MLS. Which buildings had the most damage during the big earthquake? Which oceanfront condos were most affected by the Japan tsunami? Which complexes have had ongoing maintenance issues, insurance concerns, or major repairs over the years? That kind of history matters, and it is not always sitting in the listing photos.

That is why local knowledge matters. You do not just need someone to open the door. You need someone who knows the buildings, the coastline, the financing issues, and the history behind the complex.

Final Thoughts

Buying a condo in Kailua-Kona can be a great decision, but it needs to be the right condo for your goals.

Before you focus only on the view or the purchase price, make sure you understand how you plan to use the property, whether it can be financed the way you need, whether short-term rental use is allowed, what the maintenance fee actually includes, and what the long-term ownership costs may look like.

I visited all the Hawaiian Islands multiple times before choosing to make the Big Island home. Every island has something special, but there is no place in Hawaii quite like Hawaii Island.

If you are thinking about buying a condo in Kailua-Kona, I would be happy to help you sort through the options, understand the differences between complexes, and find the right fit for how you actually plan to use it. The right condo can be a great fit. The wrong one can become expensive fast.

Does Floor Level Affect Kona Condo Prices? It Depends on the Complex

Thu, 14 May 2026 16:28:42 GMT

How floor level, views, access, and condition can change condo values in one Kona complex, while making almost no difference in another.

Does floor level affect condo prices in Kona?
Yes, but not in every complex. Floor level matters most when it changes the buyer experience. That can include view exposure, privacy, entry access, stairs, natural light, noise, and overall desirability. That is why I do not like treating every unit in the same complex as equal. Same complex does not always mean same value. But the opposite is also true. A higher floor does not automatically mean a higher price unless that floor creates a real advantage.

What happened at Kona Coffee Villas?
While running comps for a client, I needed to isolate closed sales by floor inside the same complex. I used to pull that information manually, but found a filter that made it much easier. Since I already had the data in front of me, I decided to take a closer look. At Kona Coffee Villas, the floor-by-floor numbers showed a clear price difference: 1st floor median closed sale price: $460,000. 2nd floor median closed sale price: $565,000. 3rd floor median closed sale price: $569,950. That is a meaningful spread inside the same complex.

Why did upper-floor units sell for more at Kona Coffee Villas?
Kona Coffee Villas sits on a hillside, so elevation matters. Many second-floor units are “bridge-entry” units, meaning buyers can walk in from the parking level without stairs while still getting the benefit of elevation and better view exposure. Third-floor units can push that view advantage even farther. First-floor units may have less foot traffic, but they often require stairs down and usually have weaker views and less privacy. That shows up in the numbers.

Is the Kona Coffee Villas price difference only because of floor level?
No. Condition still matters. Quite a few of the remodeled units were on the upper floors, so part of the spread may be tied to upgrades, not just elevation. That is why floor level should never be analyzed by itself. Renovation level, view corridor, privacy, entry access, stairs, parking location, lanai exposure, furnishings, and timing of the sale can all affect value.

What happened when I looked at Ali‘i Lani?
Ali‘i Lani is a different story. It is a two-story complex with no major view advantage by floor and no bridge-entry units. So I ran the same type of floor-by-floor pull to see what happens when those premiums are not part of the equation. Closed sales since January 1, 2023 showed: 1st floor median closed sale price: $485,000. 2nd floor median closed sale price: $479,500. Those numbers are essentially the same.

What does the Ali‘i Lani data show?
At Ali‘i Lani, the slight difference between first-floor and second-floor median prices is well within what you would expect from timing, condition, upgrades, or which specific units happened to sell. Structurally and practically, there is nothing at Ali‘i Lani that appears to make a second-floor unit trade higher just because it is on the second floor. In that complex, the market appears to treat the two floors as functionally equal.

Does this mean upper-floor condos are always worth more in Kona?
No. That is the point. At Kona Coffee Villas, upper-floor units showed a clear premium because the floor level often changed the buyer experience. Better elevation, better view exposure, bridge-entry access, and more privacy all matter. At Ali‘i Lani, those advantages are not really part of the equation. Without a meaningful view difference or bridge-entry layout, the floor-level price gap nearly disappears. Same town. Same market. Different result once you look inside the data.

What should Kona condo buyers take from this?
Buyers should not assume every unit in the same complex has the same value. A lower-priced unit may be lower for a reason, such as weaker view exposure, less privacy, more stairs, or dated condition. At the same time, buyers should not automatically pay more just because a unit is on a higher floor. The question is whether that floor actually gives you something better. Does it have a better view? Better privacy? Easier access? Less noise? Better airflow? Stronger resale appeal? That is where the value conversation starts.

What should Kona condo sellers take from this?
Sellers should not price only off the last sale in the complex. The better question is whether that sale is truly comparable. Same complex does not always mean same value. Same floor plan does not always mean same value. Even the same building may not mean same value if one unit has better view exposure, better condition, better access, or a more private lanai. This is where local market knowledge matters.

What is the main takeaway?
Floor level matters in some Kona condo complexes, but not all of them. At Kona Coffee Villas, elevation, view exposure, bridge-entry access, and condition created a clear price spread. At Ali‘i Lani, where those advantages do not exist, the prices leveled out. The real answer is not “upper floors are always worth more.” The better answer is this: floor level affects Kona condo prices when it changes the buyer experience. If it does not change the view, access, privacy, or desirability, the market may not pay much of a premium at all. That is why condo pricing should be done unit by unit, building by building, and complex by complex. The details matter, and the data usually tells the story.

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Can You Buy or Sell a Home with a Cesspool in Hawaii?

Wed, 13 May 2026 18:16:00 GMT

What Big Island buyers and sellers need to know about disclosure, financing, Act 125, HB1618, and Hawaii’s 2050 cesspool deadline.

Can You Buy or Sell a Home with a Cesspool in Hawaii?

Yes, homes with cesspools can still be bought and sold in Hawaii. A cesspool is not automatically a deal killer. But it is something buyers and sellers need to understand before getting too far into a transaction.

On Hawaii Island, cesspools are still common, especially in rural areas where sewer infrastructure does not exist. That means wastewater systems can affect disclosure, inspections, financing, negotiations, future conversion costs, and long-term property value.

The short version is this: Hawaii’s statewide cesspool conversion deadline remains January 1, 2050, under Act 125. Recent legislation, including HB1618 in 2026, focused on financial assistance for cesspool conversion. HB1618 did not create a statewide point-of-sale conversion requirement or change the 2050 deadline.

What is a cesspool?

A cesspool is an underground wastewater disposal system that receives sewage from a home or building. Unlike a modern septic system or sewer connection, a cesspool does not provide the same level of wastewater treatment before waste enters the surrounding ground.

That matters in Hawaii because many properties are located in areas with porous lava rock, coastal impacts, high groundwater sensitivity, or limited public sewer options. On Hawaii Island, this is not just an environmental issue. It is also a real estate issue.

What is Hawaii’s 2050 cesspool deadline?

In 2017, Hawaii passed Act 125, which requires cesspools in the state to be upgraded, converted to Department of Health-approved wastewater systems, or connected to sewer systems by January 1, 2050, unless excluded by the Director of Health.

That deadline is important, but so is the source of the deadline. Hawaii’s statewide 2050 cesspool conversion deadline is a state law requirement. It is not the same thing as the older federal EPA rules that applied to large-capacity cesspools, including certain shared systems.

Did HB1618 change the deadline?

No. HB1618 was a financing measure. It created a Cesspool Conversion Revolving Loan Fund through the Hawaii Green Infrastructure Authority to help eligible homeowners with low-interest or forgivable loans for cesspool upgrades, conversions, or sewer connections.

That is a big difference. A loan fund is not the same thing as a new conversion mandate at sale.

For buyers and sellers, the key takeaway is simple: HB1618 may help create a financing pathway for some homeowners, but it does not mean every cesspool must be converted before a property can be sold.

Does a seller have to convert a cesspool before selling?

As of now, there is no statewide point-of-sale cesspool conversion requirement in Hawaii. That means a seller generally does not have to convert a cesspool simply because the property is being sold.

But that does not mean sellers can ignore it.

A seller still needs to disclose known material facts about the property. If the property is served by a cesspool, that should be clearly understood and disclosed through the proper real estate disclosure process. If there are known issues, prior repairs, notices, shared-system concerns, or wastewater problems, those details matter.

What should sellers disclose?

Sellers should be prepared to disclose what they know about the wastewater system serving the property, including whether the property is served by a cesspool, septic system, or sewer connection; whether the system is private or shared; and whether there have been known problems, repairs, backups, notices, inspections, or other issues.

The goal is simple: avoid surprises.

Wastewater systems can become a much bigger problem if they are discovered late in the transaction. Buyers, lenders, appraisers, inspectors, and underwriters may all have questions depending on the property and the type of system involved.

What should buyers ask?

If you are buying a home on Hawaii Island, ask early what type of wastewater system serves the property. Do not assume every home is connected to sewer. Many are not.

Good buyer questions include:

What type of wastewater system serves the property?
Is it a cesspool, septic system, or sewer connection?
Is the system private or shared?
Where is it located?
Are there permits or records available?
Has the system been inspected?
Has the seller had any problems with it?
Is the property in a priority area?
What would conversion likely involve?
Could the lender have an issue with the system?

These are not small questions. On some properties, wastewater can affect cost, timing, financing, and future use.

Can a cesspool affect financing?

Yes, it can.

A normal private cesspool is not automatically a financing problem today, but wastewater compliance can become a financing issue depending on the property, the lender, and the type of system involved.

I saw this firsthand in Kona in 2005 when shared “gang cesspools” serving multiple homes became a major problem. Those systems were treated as large-capacity cesspools under federal EPA rules. Once lenders determined those systems were not compliant, financing stopped. In the local real estate community, they quickly became known as deal killers.

That history matters because it shows how wastewater rules can affect more than compliance. They can affect marketability, lending, and whether a sale can close.

Why does this matter so much on Hawaii Island?

Hawaii Island has a large number of cesspools, and many are located in rural areas where public sewer is not available. That makes this issue especially important for Big Island buyers and sellers.

In some areas, conversion may be relatively straightforward. In others, cost, design, access, soil conditions, lava rock, lot size, shoreline proximity, or lack of nearby sewer infrastructure can make the issue much more complicated.

What buyers and sellers should take away

Cesspools are not automatic deal killers in Hawaii today. Homes with cesspools can still be bought and sold. But buyers and sellers should not treat wastewater as a minor detail.

For sellers, the key is disclosure, documentation, and avoiding surprises.

For buyers, the key is asking the right questions early, understanding the system, and making sure inspections, financing, and future costs are considered before closing.

For Hawaii Island specifically, this is one of those local issues where experience matters. Cesspools, lava zones, private roads, water systems, insurance, zoning, and infrastructure are all part of understanding real estate here. They can directly affect property value, buyer decisions, and long-term ownership.

Aloha and Mahalo,

Hawaii Conveyance Tax Bill Update: Why It Matters to Property Owners

Fri, 08 May 2026 19:32:34 GMT

A closer look at the proposed Hawaii conveyance tax changes, housing affordability concerns, and why the bill’s failure in conference committee matters to property owners across the islands.

It appears the proposed conveyance tax increase bill failed to make it through conference committee this legislative session. While legislative proposals can always return in future sessions, this appears to be a significant development for Hawaii property owners, buyers, sellers, and the real estate market overall.

For many people, conveyance taxes are something they only hear about at closing. But these taxes directly impact the cost of transferring real estate in Hawaii. Any increase in conveyance taxes can affect affordability, closing costs, investment decisions, estate planning, and even a homeowner’s ability to move or downsize.

One of the concerns throughout this discussion was the growing reality that many everyday homes in Hawaii now fall into price ranges that would have once been considered “luxury” pricing decades ago. In many parts of Hawaii, especially on the neighbor islands, higher price points do not necessarily mean ultra-wealthy buyers or luxury lifestyles. Often, they simply reflect Hawaii’s challenging housing market and limited inventory.

It is also important to separate public discussion from online summaries and social media commentary surrounding various proposals. Legislative language, tax structures, thresholds, and projected impacts often evolve significantly throughout the legislative process, and not all online information accurately reflects the final language or outcome of a bill.

As someone who works daily with buyers and sellers across West Hawaii and Hawaii Island, I continue to believe it is important that lawmakers carefully consider how additional transaction costs impact local families, retirees, first-time buyers, investors, and long-time property owners alike.

Real estate plays a major role in Hawaii’s economy, housing availability, and generational wealth for many local families. Policies affecting housing costs deserve thoughtful discussion and careful long-term planning.

I’ll continue monitoring legislation that impacts Hawaii real estate, housing affordability, and property rights across West Hawaii and the Big Island.
Hawaii Real Estate, Hawaii Conveyance Tax, West Hawaii Real Estate, Kona Real Estate, Hawaii Island Real Estate, Housing Affordability, Property Rights, Hawaii Legislature, Kailua Kona, Big Island Real Estate

Is Kona’s Condo Market Cooling Off or Holding Steady? Let’s Look at the Numbers

lance@konahometeam.com — Tue, 22 Jul 2025 03:26:54 GMT

Is Kona’s Condo Market Cooling Off or Holding Steady? Let’s Look at the Numbers

As of June 30, 2025, we’ve seen 163 condos sold year-to-date in the Kona market. That’s across the first six months of the year, averaging about 27 units per month . Meanwhile, 169 condo units are currently active on the market.

That gives us an absorption rate of 16.1% .

If you’re not familiar with the term, absorption rate is a key metric we use to gauge how fast the market is moving. It compares how many homes are selling to how many are currently for sale.

Here’s what the numbers mean in simple terms:

Under 15% absorption is typically a buyer’s market — lots of inventory, slower sales.
15–20% is a balanced market — neither buyers nor sellers have a major edge.
Over 20% often signals a seller’s market , with fast-moving inventory and strong demand.

So at just over 16% , Kona’s condo market is sitting in that middle zone — balanced, but showing signs of softening compared to earlier this year.

We also looked at June alone , where 26 condos sold. That monthly absorption rate comes in at 15.4% , consistent with the year-to-date trend.

What This Means for Buyers and Sellers

For buyers , this is welcome news. More choices, a little more negotiation power, and less competition than the frenzy we saw in previous years.

For sellers , it means pricing correctly matters more than ever. Condos that are clean, well-marketed, and priced right are still moving — but the days of multiple offers in 24 hours aren’t the norm right now.

If you’re watching the market or planning your next move — whether it’s buying your first condo, upsizing, or selling your investment — let’s talk. I’ll give you the real numbers, straight up.

No hype. Just the facts.

North Kona Market Stays Strong While National Sales Slide

Thu, 24 Apr 2025 23:50:00 GMT

Today’s Inman News headline reads:

“Existing-home sales fall to slowest pace since 2009 amid rising costs.”

That may be true nationally—but not here in North Kona .

While the mainland sees pullbacks, our local data paints a different picture. From January through March 2025, both home and condo sales in North Kona are up—eclipsing 2024, 2009, and even 2008 numbers.

�� North Kona YTD Sales (Jan 1–Mar 31):

2008: 69 Homes | 47 Condos

2009 : 42 Homes | 33 Condos

2024: 104 Homes | 67 Condos

2025: 107 Homes | 82 Condos

This isn’t just a rebound—it’s sustained confidence. Buyers are still buying. Sellers are still selling. And the market is still moving.

It’s a powerful reminder that real estate is local . National headlines don’t always reflect what’s happening in our neighborhoods, our communities, or right here on the Big Island.

Want the real story—not the national spin? Talk to someone who’s lived and worked it.

With 21 years of boots-on-the-ground experience in the North Kona market, I’ve seen every shift, surge, and slowdown (even volcano related) . Let’s talk about what’s really happening—and how it affects your next move.

Aloha,

Posted by

Lance Owens RB-24133

Final Town Hall — Last Chance to Speak Up on Ali'i Drive

Mon, 14 Apr 2025 20:04:00 GMT

Mayor Kimo Alameda is holding a final Town Hall meeting:

�� Tuesday, 5:30–7:00 PM��

Make‘o Pavilion at Old Airport

If we want a say in Kona’s future, now is the time.

Show up. Share your mana‘o. Let’s make sure the decisions made today reflect the hard lessons — and wasted money — of the past.

Mahalo to Our Leaders

Mahalo to Mayor Kimo Alameda, Council Member Rebecca Villegas, and 365 Hawaii Island Community Fund for pulling the community together on Saturday.It’s powerful to see leadership and respectful conversation at a time when real listening is rare.With almost all in attendance opposed to the idea, few had other solutions.(Personal note: Kuakini Highway must be widened before any one-way plan moves forward.)

Why the Past Matters Today

Yesterday, I had the chance to speak and remind our leaders of a history many may not know.

We have a new administration, new decision-makers, and 60% more residents since the last time this failed — making it even more critical to learn from the past before repeating it: These timelines were shared with Mayor Kimo Alameda and Council Member Rebecca Villegas - but should be spoken to at the meeting Tuesday

1974 — One-Way Ali‘i Drive AttemptThe County tried making Ali‘i Drive one-way.Public outrage, traffic jams, and confusion killed the plan almost immediately.

1999 — Paid Parking at Coconut GrovePaid parking was introduced, enforced by Diamond Parking.Businesses quickly lost customers.Locals and visitors pushed back hard.Within a year and a half, the system collapsed under pressure without needing government interference.

2004 — Another One-Way PilotDepartment of Public Works launched another one-way test when Kona had about 28,500 residents.Goal: Improve pedestrian safety and deliveries.Result: Massive congestion on Kuakini Highway and side streets.Public backlash ended the project early — after spending significant taxpayer money setting it up.(Personal note: I was a prisoner in my own office. It took over an hour just to get out and back.)

2013 — Expert Warning IgnoredA new administration revisited the idea, population now at 37,800Warren Lee, Director of Public Works — a licensed Professional Engineer (P.E.) and respected leader of major infrastructure projects across Hawai‘i — publicly warned:"Any one-way proposal must be contingent on the completion of alternate routes to absorb displaced traffic.Public health, safety, and overall traffic flow must improve — not worsen — before any change is made."

2023 — Paid Parking ReturnsPaid parking was reintroduced in Kailua Village.Same pattern: fewer visitors, frustrated residents, half-empty parking lots.

2025 — Déjà Vu?A new one-way proposal is on the table.Kona’s population has jumped 60% since the last failure — from about 28,000 to 45,000 people today.

The Pattern is Crystal Clear

Every time these changes were rushed without real planning, they failed — wasting time, wasting money, and hurting local businesses.

�� Show Up Tomorrow

We cannot afford another repeat.

Show up tomorrow. We owe it to our community — and our tax dollars — to learn from the past and plan responsibly.�� Final Town Hall�� Tuesday, 5:30–7:00 PM�� Make‘o Pavilion at Old Airport

Posted by:

Lance Owens RB-24133
808.936.8383

LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740
REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage
Hawaii Association of REALTORS® (HAR)
2025 President 2023/24 State RPAC Chair
2023 HARLA Graduate
National Association of REALTORS® (NAR)
2023-25 Director 2024-25 RPAC Participation Council Safety Advisory Committee Region 13 Leadership
NAR Designations
AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor)
West Hawaii Association of REALTORS® (WHAR)
2023 REALTOR® of the Year 2018/2022 Preside

Zillow’s New Rules Could Cost Sellers More Than They Think

Thu, 10 Apr 2025 23:57:00 GMT

Off-market listings — sometimes called pocket or private listings — have always carried big risks for sellers.

While they’re sometimes pitched as a way to stay “private” or “in control,” the truth is simple: limiting exposure usually limits your results . Unless there’s a real need for privacy, keeping a home off the open market can cost the seller.

Starting in May , Zillow — the country’s largest real estate portal — will permanently prohibit any listing that isn’t added to the MLS within 24 hours of public marketing.

If a home is marketed to any buyer, it must be available to every buyer — or it won’t appear on Zillow or Trulia at all.

(And yes — even those of us with a love/hate relationship with Zillow know that's where buyers are looking.)

This change follows updates to NAR’s Clear Cooperation Policy, now allowing MLSs to create a Delayed Marketing Exempt Listing option. Sellers get a limited window to prepare a property before full exposure — but that's it.

Here’s why this matters to all of us:

Homes sell for more when marketed widely . Research from Bright MLS shows MLS-listed homes sell for nearly 17% more than private sales.

True privacy is rare . Trusts and LLCs already shield most owners’ identities. Keeping listings off the MLS doesn’t guarantee real anonymity.

Who really benefits? In most cases, pocket listings benefit the brokerage more than the seller.

When limited marketing might be appropriate: A condo owner who doesn’t want neighbors to know yet, or a family handling the sale of a loved one’s home and seeking privacy. Even then, sellers should fully understand the risks.

Privacy can be respected — but full value comes from full exposure.

Bottom Line:

The days of quietly marketing properties outside the full marketplace are ending.

As REALTORS®, it's our duty to explain the risks clearly and help sellers understand that wide exposure remains the best path to better offers and stronger terms.

At LUVA Real Estate , we not only market listings locally, but nationally on sites like Zillow and Homes.com, internationally through Leverage Global Partners , and even syndicate to exclusive private portals that other brokerages can’t reach.

Question for my fellow REALTORS®:

�� How are you advising your sellers under the new Clear Cooperation and Zillow rules?�� Are you seeing more sellers push for exclusivity, or are they more open to full MLS marketing?

Would love to hear how you’re handling the changes in your market!

#RealEstate #HomeSellingTips #RealEstateAdvice #Zillow #NAR #RealEstateMarketing #HomeSelling #HawaiiRealEstate #BigIslandRealEstate #LuxuryRealEstate #LUVARealEstate #LeverageRE

Posted by:

Lance Owens RB-24133
808.936.8383

Home Sellers: The Hidden Risks of Limiting Who Sees Your Listing

Mon, 07 Apr 2025 16:00:00 GMT

So you’re getting ready to sell your home and starting to interview agents.

You might hear advice about keeping your listing “exclusive” — meaning only marketed within one brokerage — instead of putting it out freely to the open market.

At first, it can sound appealing. Maybe it’s pitched as a way to stay “private” or “in control” of the process.But before you make that decision, it’s important to understand what’s really at stake — because how your home is marketed can make a big difference in how much you ultimately sell for.

Imagine trying to sell your car by telling just a few people at your office — no ads, no internet, no real exposure. Would you expect to get the best price?

The only reason I bring up the car example is because most of us have sold a few cars over the years. It’s something we can all relate to. Selling a home is different, but similar - it’s not something people do every few years. That’s why your marketing strategy matters even more when the stakes are higher.

Homes sell for more when they’re marketed to as many buyers as possible. Research from Bright MLS shows that homes listed through the MLS sell for nearly 17% more than homes sold privately or off-market. Cutting off exposure usually cuts into your bottom line.

Today, there’s a growing trend of promoting “exclusive” or “private” listings within a single brokerage, limiting visibility to only that firm’s agents and clients. While marketed as a benefit, it’s important to ask: who really benefits?

In high-net-worth markets like the Big Island of Hawaii, privacy is often used as a selling point. But true privacy concerns — like those involving celebrities or ultra-wealthy individuals — are rare. Most properties are already owned through trusts or LLCs that shield the owner's name. Simply keeping a listing off the MLS doesn’t achieve real anonymity.

That said, there are situations where limited exposure might make sense — like when someone in a condo complex doesn’t want neighbors to know they’re moving until after they’ve left, or when a family needs to sell quietly for a parent’s estate. Those choices should come from the seller’s real needs — not from pressure or convenience for the brokerage.

New NAR Guidance for Sellers

The National Association of REALTORS® recently released a new consumer guide explaining the rules:

MLS Listings: Homes must be submitted to the MLS within one business day after public marketing (like a yard sign or social media post). This supports fair housing and equal opportunity.

Exempt Listings:

Office Exclusive Exempt Listing: Property stays off the public MLS and is marketed only inside the brokerage.

Delayed Marketing Exempt Listing: Property is entered into the MLS but withheld from public websites (IDX and syndication) for a set period. During that time, sellers can still privately market.

Disclosure Requirements: Sellers must sign an acknowledgment that they are waiving MLS/public marketing benefits.

Local Variations: Rules vary by MLS and state law.

The Bottom Line

Sellers deserve full, honest advice about the financial impact of their marketing decisions.

For most, full exposure through the MLS is the best way to achieve the highest price and strongest terms .

Limited marketing may make sense in very specific, seller-driven situations — but it should never be used to create an advantage for a brokerage.

As REALTORS®, it’s our duty to put the client’s interests first. Always.

For More Information:

To read the full consumer guide from the National Association of REALTORS®, click here to view it directly. @nardotrealtor

�� Contact Information If you’re preparing to sell, I encourage you to bring this conversation into any interviews you have with agents.

Choosing the right marketing strategy upfront can make a real difference in your results.

I’d be honored to be one of the professionals you consider when the time comes .

Feel free to call, text, or email me any time:

�� (808) 936-8383 | ✉️ Lance@KonaHomeTeam.com | �� www.KonaHomeTeam.com

Home Selling Tips, Real Estate Marketing, MLS Rules, Exclusive Listings, Office Exclusive, Delayed Marketing, Big Island Real Estate, Hawaii Homes for Sale, Real Estate Advice, NAR Consumer Guide, Seller Representation, Home Selling Strategy

Lance Owens RB-24133 808.936.8383

LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740

REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage

Hawaii Association of REALTORS® (HAR)

2025 President | 2023/24 State RPAC Chair

2023 HARLA Graduate

National Association of REALTORS® (NAR)

2023-25 Director | 2024-25 RPAC Participation Council | Safety Advisory Committee | Region 13 Leadership

NAR Designations

AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor)

West Hawaii Association of REALTORS® (WHAR) 2023 REALTOR® of the Year | 2018/2022 Preside

Posted by:

Lance Owens RB-24133
808.936.8383

Kailua-Kona's Parking Historical Controversy (1999-2002)

Fri, 04 Apr 2025 16:00:00 GMT

Does this sound familiar?

Today, parking woes are once again a hot topic in Kailua-Kona. But this isn’t the first time the community has rallied over parking issues. Back in the late 1990s and early 2000s, a major controversy erupted when Coconut Grove Marketplace, located along Ali'i Drive in downtown Kona, introduced paid parking in a town where free parking had been the norm. The reaction from the community was swift, passionate, and deeply memorable.

Paid Parking Arrives in Downtown Kona

Coconut Grove Marketplace, originally developed around 1998 by Anekona LLC, opened with new shops and restaurants along Ali'i Drive. By 1999-2001, management had hired Diamond Parking Services, a private company, to oversee parking enforcement. For the first time in recent memory, drivers had to pay to park in the heart of Kailua Village.

The rates, while modest by big city standards, shocked locals who were used to free parking. Diamond Parking strictly enforced the new parking rules. Failure to pay could result in fines around $40–50, often issued via private "tickets" that looked official but were really invoices.

Community Backlash

The response was immediate and overwhelmingly negative.

Residents, businesses, and visitors all pushed back. Letters to the editor of West Hawaii Today and testimony at public meetings captured the outrage. Business owners publicly warned that paid parking could drive customers away and severely hurt the downtown economy (West Hawaii Today, 2001).

Visitors also voiced their frustrations. One tourist recounted, "I watched a number of tourists drive in, read the parking sign, talk among themselves, and drive right back out" (West Hawaii Today, 2001). Others shared stories of getting hit with $45 fines after simply grabbing a quick meal or shopping for souvenirs, with one letter noting, "Diamond Parking is issuing tickets to hundreds of cars without proper signage or clear warnings" (West Hawaii Today, 2001).

Local businesses saw an immediate downturn. Many owners reported fewer locals shopping and more negative feedback from visitors. Some residents simply chose not to visit downtown anymore, saying parking stress ruined the easygoing spirit that had made Kona special.

Outcome

By 2002, after roughly a year or two of community pressure, the paid parking at Coconut Grove Marketplace was quietly discontinued. The pay stations were removed, enforcement signs came down, and parking once again became free. It was a clear win for community advocacy and a reminder that in a place like Kona, changes that affect locals and visitors alike need broad public support.

Reflection

Today, as Kona again grapples with parking challenges, it's worth remembering that these issues are not new. The Coconut Grove incident from 1999–2002 serves as an important historical lesson in balancing development needs with community values — and the importance of listening to the people who call Kona home.

At the same time, we should recognize that property rights and free markets often correct themselves over time. When businesses listen to their customers — and when the community stays engaged — the system finds a way to balance access, fairness, and private ownership. Just as it did more than 20 years ago.

Sources: This article is based on historical online information, public records, news archives, and community recollections. Specific quotes referenced from West Hawaii Today archives, 2001. If you have corrections or additional details to share, please reach out and let us know. We welcome your input to keep our local history accurate.

Aloha and Mahalo.

Posted by:

Lance Owens RB-24133
808.936.8383

How a 1983 Tariff Changed an Industry - And My Life

Thu, 03 Apr 2025 23:28:00 GMT

This Isn’t About Politics—It’s About Experience

In the early 1980s, I wasn’t just working on motorcycles—I was racing them. I lived and breathed motorcycles. As a mechanic for Kawasaki and Harley-Davidson dealerships on Oahu and in Las Vegas, I saw both sides of an industry in crisis. Harley was struggling, while Japanese bikes dominated the market and the track.

Then, in 1983, everything changed.

A Tariff That Reshaped an Industry

The U.S. imposed a massive tariff on Japanese motorcycles over 700cc, aimed at saving Harley-Davidson. Almost overnight, racing classes shifted—750cc bikes were downsized to 699cc, and Japanese manufacturers moved more production to the U.S. to avoid the tariffs, creating thousands of American jobs.

At the shop, I watched the impact unfold firsthand. Harley got a second chance, while Kawasaki, Honda, Yamaha, and Suzuki adapted fast. The experience left a lasting impression on me - tariffs, when done right, can reshape industries, protect jobs, and force innovation.

Reagan’s Bold Move: The 1983 Tariff

In April 1983 , President Ronald Reagan signed a five-year tariff plan , dramatically increasing the import duty on Japanese motorcycles over 700cc:

1983: 45%
1984: 35%
1985: 20%
1986: 15%
1987: 10% (back to normal levels)

The goal? Give Harley-Davidson time to recover . But what happened next went beyond just Harley—it changed American manufacturing.

Notice the big white patch on my back, it was required as rookie to wear that - I cut up an old t-shirt and duck taped it to my leathers - lots of riders got to see it from behind - I won the race!

The Unexpected Twist: Thousands of Jobs Created in America

Rather than accept the tariffs, Japanese manufacturers adapted by moving more production to the U.S. to avoid the import tax:

✅ Honda expanded its Ohio factory, creating thousands of jobs.

✅ Kawasaki ramped up production in Nebraska.

✅ Yamaha and Suzuki followed suit.

For the first time, foreign motorcycle brands were being built in the U.S. on a large scale , bringing long-term jobs, technology, and investment to American workers.

Another favorite - 1982 GPZ 550 - I had over 25 motorcycles during my youth

Harley’s Comeback and a Win-Win for all

Meanwhile, Harley-Davidson used this window wisely —improving quality, modernizing production, and reclaiming its reputation. By 1987, Harley was profitable again —and in a bold, unheard-of move, they asked the Reagan administration to lift the tariffs a year early.

This wasn’t just about Harley—it was a blueprint for how strategic tariffs can work . The 1983 motorcycle tariff didn’t just protect one company; it forced innovation, created American jobs, and reshaped an industry.

The Lesson: Tariffs Can Work—If Done Right

Most tariffs drag on too long or cause unintended consequences. But this one? It saved an American icon, forced foreign investment in U.S. manufacturing, and proved that short-term protection can lead to long-term economic strength.

Looking back, I realize just how big of an impact those years had—not just on my career, but on an entire industry. It was a rare case where everyone evolved—and America came out stronger.

Back in the 80's, this was my "production class" Kawasaki 1000 Z1R

Why This Matters Today This story isn’t just history—it’s a lesson for today’s trade debates. If done right, tariffs can protect American industries—but only if they push companies to innovate rather than rely on permanent protection.

Would this strategy work again today? That’s up for debate. But one thing is clear—the motorcycle tariff of 1983 changed American manufacturing forever.

And just like manufacturing, housing and real estate are cornerstones of our economy. When smart policy is paired with local insight and long-term thinking, we can strengthen communities, create jobs, and keep opportunity within reach—for everyone.

��️ Let’s Talk: What Do You Think? �� Do you think tariffs can still work today? �� Were you working or riding in this era? I’d love to hear your thoughts!

Posted by:

Lance Owens RB-24133
808.936.8383

Misconceptions: Adjusting Buyer Agreement Compensation Is Okay

Mon, 02 Dec 2024 22:15:00 GMT

The real estate industry has seen plenty of discussion surrounding recent changes in National Association of REALTORS® (NAR) policies. Misinterpretations of these changes, particularly about written buyer agreements and compensation adjustments, have caused confusion. Let’s set the record straight: you can adjust the compensation terms in a buyer agreement, provided it’s done transparently and within the guidelines set by the NAR settlement and state law.

What the Settlement Really Says

At its core, the NAR settlement emphasizes clarity, transparency, and mutual agreement in all written buyer agreements. Here's what you need to know:

Amendments Are Allowed

Written buyer agreements are like any other contract. If both the REALTOR® and the client agree to modify the terms, the agreement can be amended. This flexibility ensures the arrangement serves the best interests of both parties as circumstances evolve.

Specific Compensation Terms Are Required

The settlement mandates that compensation terms in buyer agreements must be explicit and not open-ended. For example, terms like "whatever the seller is offering" are no longer acceptable. Compensation must be clearly defined and understood by both parties from the outset.

Prohibited Adjustments

Amendments cannot be made simply to match whatever compensation the seller is offering. The intent behind the change must align with the original principles of the agreement, ensuring fairness and transparency.

Real-World Scenarios for Adjusting Compensation

There are many valid reasons why a REALTOR® might see the need to amend the compensation outlined in a buyer agreement. For example:

For Sale by Owner (FSBO): When working with a FSBO property, the REALTOR® often takes on additional responsibilities, such as managing disclosures, contracts, and other tasks typically handled by the seller's agent.

Limited-Service Listings: If the property is listed by a limited-service agent, the REALTOR® may be required to take on more of the workload, including tasks outside their usual scope.

Switching to Land Purchases: A buyer might decide to shift from searching for a home to purchasing a much cheaper piece of land. This change can require more effort to identify and evaluate suitable properties.

Short Sales: Transactions involving short sales are often more complex, requiring additional time, expertise, and negotiation.

Expanded Search Areas: A buyer might get priced out of one area, such as Kona, and decide to look in a different, more affordable location, such as Hilo. This adjustment could mean more time spent traveling and managing the transaction across different markets.

These are just a few examples, but there are countless other scenarios where the REALTOR®’s workload or responsibilities increase, justifying a change in compensation.

Transparency Is Key

The settlement highlights that transparency is in everyone’s best interest. Any amendments to a buyer agreement must be fully disclosed and agreed upon by both the buyer and the agent. This approach not only aligns with ethical practices but also fosters trust in the client-agent relationship.

Addressing the Misunderstandings

Some in the industry have misunderstood these changes, incorrectly believing that amendments to buyer agreements are restricted or prohibited. This misconception stems from a lack of clarity about the settlement’s requirements. The truth is that adjustments are perfectly permissible, as long as they are made transparently and in compliance with state laws and the settlement’s terms.

Why This Matters

Written buyer agreements are designed to bring clarity to real estate transactions. By defining compensation and services upfront, both buyers and agents can avoid surprises and potential conflicts. And when circumstances require adjustments, having the flexibility to amend these agreements ensures they remain relevant and fair.

The Takeaway

The updated NAR policies are not about restricting REALTORS® but rather about creating a more transparent and professional environment. You can amend your written buyer agreements, including compensation terms, as long as you and your client mutually agree and follow the rules. This clarity benefits everyone involved—building trust, ensuring fairness, and upholding the integrity of the real estate profession.If you're a REALTOR® navigating these changes, embrace the flexibility that written buyer agreements provide. And if you're a client, know that your relationship with your agent is built on mutual understanding and transparency. By working together and adhering to these principles, both buyers and REALTORS® can enjoy a smoother, more transparent real estate process.

NAR Settlement: Get the Facts

Posted by:

Lance Owens RB-24133
808.936.8383

Update: Hawai'i Short Term Rental Bill 121 - Where Does it Stand?

Fri, 15 Nov 2024 18:43:00 GMT

Hawaii County's Bill 121 aimed to regulate short-term vacation rentals, also known as transient accommodation rentals (TARs). The proposed legislation sought to establish clear guidelines for owner-hosted, operator-hosted, and un-hosted rentals, as well as for platforms like Airbnb and VRBO. Its objectives included improving safety, ensuring consistent operational standards, and addressing concerns about housing availability and the broader impact of TARs on our island communities.

While the bill had good intentions, it sparked considerable opposition from residents and stakeholders alike. Many expressed concerns that it could infringe on private property rights and harm the local economy. Nearly every council meeting on the matter drew strong pushback, with community members voicing their concerns and engaging in extensive discussions.

Here’s a quick update on where the bill stands now. A heartfelt Mahalo goes out to the West Hawaii Association of REALTORS® and the Hawaii Island Association of REALTORS® for their collaborative efforts in educating both the community and council members about the unintended consequences this bill could have had.

Posted by:

Lance Owens RB-24133
808.936.8383

Tourism Displaced: Ironman’s Real Impact on Kona’s Local Economy

Sun, 27 Oct 2024 00:06:00 GMT

We all have that one friend who likes to brag—whether it’s about how much money they make, how big their home is, or how impressive their achievements are.

The Ironman race in Kona can feel a bit like that friend. Every year, the event proudly claims to inject millions into the local economy. However, data paints a different picture, and a closer look at the numbers suggests those claims may be somewhat overstated.

Overview of Visitor Data (Past 10 Years)

Below is an analysis of visitor data from the Hawaii Department of Business, Economic Development & Tourism, covering visitor days, arrivals, and expenditures over the past decade.

Seasonal Trends

Expenditures: Higher visitor spending occurs during winter months (e.g., December, January, February).
December 2018: $228 million in visitor expenditures
January 2019: $253 million in visitor expenditures
Summer Peaks: July and August also see increased visitor numbers, aligning with vacation seasons.
July 2019: 173,899 total visitor days, $221 million in expenditures
August 2018: 157,544 visitor days, $167 million in expenditures

October’s Position

October tends to fall between summer and winter highs:
October 2018: 857,946 visitor days, $170.4 million in expenditures
October 2019: 931,498 visitor days, $176.9 million in expenditures
Other months, like December and July, regularly outperform October.

A Key Discovery

2020 and 2021 were the only years in over four decades when the Ironman World Championship wasn’t held in Hawaii.

In 2020 , Hawaii’s tourism shut down due to the pandemic, with no tourism spending data reported.
In 2021 , without the Ironman race, October offers a unique benchmark—and it outperformed both its neighboring months in revenue, a rare occurrence seen only four other times over the past decade : 2014, 2018, 2019, 2021, and 2022.

Visitor Data for 2021:

September 2021: 733,439 visitor days, $136 million revenue
October 2021: 824,203 visitor days, $161 million revenue (outperformed both neighboring months)
November 2021: 1,003,095 visitor days, $157 million revenue

This insight suggests that October can thrive without Ironman, raising questions about the race's actual economic impact.

October 2023 in Context with the Ironman Event

September 2023: 1,020,439 visitor days, $252 million revenue
October 2023: 1,045,749 visitor days, $248 million revenue (more visitors, but less spending)
November 2023: 1,092,203 visitor days, $259 million revenue
Note- visual aid below reflects 2020 with no data reported

Real Estate Sales Trends During Ironman

A closer look at real estate data suggests that the Ironman race does not cause significant disruptions in the local housing market. Sales from September to December align with typical seasonal patterns (sample pulled from MLS in 2019—pre-COVID, post-2018 lava flow North Kona):

September: 45 homes, 35 condos sold
October: 41 homes, 38 condos sold
November: 44 homes, 28 condos sold
December: 36 homes, 38 condos sold

COVID-19 Impact on Tourism

The pandemic had a significant impact on tourism, with 2020 seeing a sharp decline in visitor numbers:

October 2020: 213,822 visitor days (compared to over 900,000 pre-pandemic)
No expenditure was recorded during this period due to travel restrictions.

Additional Insight

Tourism Displacement: Ironman participants’ trips often replace other types of vacations, limiting the net economic impact (sources: Hawaii Public Radio, Kauai News Now).

Conclusion

The data confirms that October does not generate a significant economic boost compared to other months. Visitor arrivals and expenditures peak during July, August, December, and January, with October generally performing at average levels.

However, 2021 offers a unique insight —being the only October in four decades without the Ironman race. Interestingly, October has outperformed both September and November in revenue not just in 2021 , but also in 2014, 2018, 2019, and 2022 . This suggests that the event may not be the driving factor behind strong spending patterns in October, raising questions about the true economic impact of Ironman.

With the data in hand, the question becomes: Is it really worth it all?

My Personal Opinion

I appreciate Ironman for what it is—an incredible display of human strength and achievement. However, it’s important not to mistake it for something it’s not.

While the event generates some economic impact, the claim of injecting $30 million into Kona’s economy must be weighed against the $30 million in displaced spending from typical winter activities—like fall break trips, weddings, honeymoons, anniversaries, family vacations, and visits focused on relaxation, adventure, or cultural experiences in Hawaii.

The numbers speak for themselves.

Posted by:

Lance Owens RB-24133
808.936.8383

Mayor Roth Signs Ohana Bill Into Legislation

Wed, 09 Oct 2024 19:04:17 GMT

Bill refers to them as ADU's to help with financing and understanding of what an O'hana is.

In a bid to alleviate the ongoing housing crisis, Hawaii County has taken a bold step forward with the signing of Bill 123. This new measure, endorsed by Mayor Mitch Roth, opens up opportunities for homeowners across the county to build up to three accessory dwelling units (ADUs) on their properties, making it easier for local families to find housing while maximizing the use of existing land.

"I commend Mayor Mitch Roth for his commitment to affordable housing and innovative approaches to help keep our families rooted here in Hawaii. If we can pause Bill 121 until the economic impact study is complete, the Big Island will truly shine as a leader in smart growth and community well-being."

The bill, crafted with input from key figures within the county's Planning Department and County Council members, represents a significant policy shift from previous limitations on 'ohana dwellings. These changes offer a more adaptable approach to expanding housing availability across the county.

“We need to think beyond conventional solutions if we’re serious about tackling our housing shortage,” Mayor Roth said during the bill’s signing. “By enabling more accessory units, we’re allowing homeowners to help meet the demand for housing while ensuring our communities stay strong for future generations.”

What Does Bill 123 Do?

Under the new law, homeowners can now construct up to three ADUs on their property, with each unit capped at 1,250 square feet. Whether detached or attached to the main home, these ADUs are allowed in several zoning districts, including residential, duplex, and agricultural zones.

Key provisions include:

Increased ADU Limits : Homeowners can build up to three ADUs on properties in various zoning districts, including residential (RS), duplex (RD), residential-agricultural (RA), agricultural (A), and family agricultural (FA) districts.
Limit on Short-Term Rentals : The bill restricts the use of ADUs as vacation rentals, except in a few cases, to prioritize long-term housing solutions.
Meeting Safety and Infrastructure Standards : Homeowners must comply with existing requirements for water supply, sewage systems, and fire protection when adding ADUs to their properties.

Mayor Roth highlighted the practical benefits of the legislation, emphasizing the need for local solutions to a statewide issue. “By allowing for more ADUs, we’re empowering residents to contribute to the solution. This isn’t just about more homes; it’s about creating sustainable growth and making sure our communities remain livable for the long term.”

A Path Forward

Bill 123 arrives at a critical time, offering homeowners a new way to help ease the island's housing pressures while generating potential rental income. Those interested in taking advantage of the new provisions or seeking more information on the application process can reach out to the Hawaii County Planning Department.

As Hawaii County continues to grapple with housing affordability, Bill 123 provides a promising framework for growth that benefits both individual homeowners and the community at large. It’s a step toward ensuring that local families can stay rooted in their neighborhoods while creating room for the next generation to thrive.

Posted by:

Lance Owens RB-24133
808.936.8383

How Presidential Elections Impact the Housing Market

Sun, 06 Oct 2024 20:04:26 GMT

Market insights and trends

Aloha, Lance Owens (RB) with LUVA Real Estate
As a seasoned REALTOR® in Hawaii with two decades of experience, I often encounter questions about how major events, like presidential elections, affect the housing market. With the next election on the horizon, it’s a good time to explore this topic in detail. Based on historical data and expert analysis, here’s a comprehensive look at how the housing market has responded to past presidential elections.

Home Prices: A Steady Ascent

Historical Trends in Home Prices

One of the most reassuring trends for homeowners and potential buyers is the consistent rise in home prices following presidential elections. Data shows that home prices increased after 7 of the last 8 presidential elections. This indicates that the market tends to follow its existing trajectory, and prices generally rise, even in election years. The U.S. Annual Median Sales Price of Existing Single-Family Houses graph illustrates this trend clearly, highlighting the growth in both election years (marked in blue) and the years following elections (marked in green).

Why Do Prices Rise?

The reasons behind this trend are multifaceted:

Economic Stability : Often, the underlying economic conditions and policies influencing the market are established long before the election, ensuring stability.
Market Momentum : The housing market has its momentum, driven by factors such as supply and demand, interest rates, and demographic trends, which usually continue regardless of the election outcome.

Home Sales: Rebounding Post-Election

Sales Patterns Around Elections

When it comes to home sales, the trend is similarly positive. Historical data reveals that home sales went up after 9 of the last 11 presidential elections. While there is a slight slowdown in sales during election years, especially noticeable in November, these dips are temporary. The U.S. Annual Existing Home Sales graph shows a clear pattern of recovery and growth in the years following elections.

Factors Influencing Sales

Several factors contribute to this pattern:

Buyer Confidence : Uncertainty during election periods can make buyers hesitant. However, once the election concludes and the political landscape becomes clearer, confidence returns, and so does buyer activity.
Interest Rates and Affordability : Lower interest rates often accompany election years, making mortgages more affordable and stimulating sales.

Mortgage Rates: A Downward Trend

Election Year Interest Rates

Mortgage rates have shown a tendency to decrease slightly from July to November in 8 of the last 11 presidential election years. This pattern is detailed in the graph showcasing changes from July to November of recent election years. The general decrease in rates during this period can make home buying more attractive by lowering borrowing costs.

Why Do Rates Decrease?

Several reasons may account for this trend:

Economic Policies : Central banks might adjust policies to maintain economic stability, often resulting in lower interest rates.
Market Reactions : Financial markets often anticipate changes and react accordingly, sometimes driving down interest rates in the short term.

Expert Insights: A Broader Perspective

According to Lisa Sturtevant, Chief Economist at Bright MLS, the housing market does not typically look very different in presidential election years compared to other years. This insight is crucial for both buyers and sellers, indicating that while there may be minor fluctuations, the overall market dynamics remain robust and predictable.

Navigating the Market

As we approach the upcoming election, understanding these historical trends can help you make informed decisions. Whether you are considering buying, selling, or simply curious about the market, it’s essential to base your decisions on comprehensive data and expert advice.

If you have any specific questions or need personalized guidance, feel free to reach out. Together, we can navigate the market confidently, ensuring that your real estate goals are met regardless of the election cycle.

Contact Me

For more insights and tailored advice, let’s connect! Your real estate journey in Hawaii is my top priority, and I’m here to help you every step of the way.

Big Changes for Maui’s Short-Term Vacation Rentals: Who is Exempt?

Tue, 30 Jul 2024 17:53:00 GMT

Maui is on the verge of significant changes with a proposal to phase out thousands of short-term vacation rentals in an effort to address the island’s housing crisis. This move aims to prioritize long-term housing for residents and alleviate the pressures on the local housing market. You can read the full article on these developments here .

Secure Your Investment with Confidence

In light of these upcoming changes, the listing at 2481 Kaanapali Pkwy #964 stands out as a secure and versatile investment. This property is not included in the proposed regulations, ensuring your investment remains unaffected by the new short-term rental policies.

Key Features:

2481 Kaanapali Pkwy Unit: 964 2481 Kaanapali Pkwy Unit: 964, Lahaina, HI 96761

Prime Location : Enjoy the vibrant surroundings of Kaanapali with easy access to pristine beaches, world-class dining, and cultural landmarks.
Spacious and Elegant : This unit features amazing ocean views, modern interior with ample natural light, creating a warm and inviting atmosphere.
Resort-Style Living : Benefit from top-tier facilities including a swimming pool, fitness center, and beautifully manicured gardens.

Why This Listing Stands Out

Exempt from Proposed Short-Term Rental Changes : One of the most significant advantages of this property is its exemption from the new proposed regulations on short-term vacation rentals. The condo is situated in "Hotel Zoning," having always been intended for hotel-style living, which allows short-term rentals. This means your investment remains secure and versatile, whether you choose to enjoy it as a private retreat or capitalize on rental opportunities under the current guidelines.

Sustainable Investment : With the ongoing shifts in Maui’s real estate landscape, owning a property that aligns with the new regulations provides long-term stability and growth potential.

Embrace the Maui Lifestyle

This listing at 2481 Kaanapali Pkwy #964 represents an incredible opportunity to own a piece of paradise without the uncertainties surrounding short-term rental regulations. Whether you’re looking for a permanent residence, a vacation home, or an investment property, this unit promises unmatched value and a future-proof investment.

For more information or to schedule a viewing, please visit the listing page .

Listing Provided by:
Hawaii Life
Josh Jerman RB-19728 | Cell: 808-283-2222
Tim Stice RB-21556 | Cell: 808-268-8511
2481 Kaanapali Pkwy Unit: 964 2481 Kaanapali Pkwy Unit: 964, Lahaina, HI 96761

Posted by

Lance Owens RB-24133
808.936.8383

Delayed Sellers Cannot Wait Longer

Tue, 23 Jul 2024 23:51:00 GMT

Aloha, Lance Owens (RB) with LUVA Real Estate.

Over the past two years, significant demographic and economic shifts have occurred, influencing various aspects of the real estate market. According to the National Association of REALTORS®, the combination of 7 million new-born babies, 3 million marriages, 1.5 million divorces, and 7 million people turning 65 has created dynamic changes in housing needs and availability. These life events often necessitate changes in living situations, such as upgrading to a larger home, downsizing, or relocating. Additionally, with 4 million deaths, the turnover of properties through inheritance or sale by estates further adds to the housing market dynamics.

Moreover, the economic landscape has seen substantial movement with 6 million net new jobs and an astounding 50 million job switches. These job changes often lead to geographic mobility, driving demand for housing in different regions. The National Association of REALTORS® suggests that these cumulative factors will gradually weaken the "lock-in effect" where homeowners delay selling their properties. As these demographic and economic shifts continue to unfold, we can expect a more fluid and responsive real estate market, accommodating the evolving needs and circumstances of individuals and families across the country.

Additionally, current high mortgage interest rates have made many homeowners reluctant to sell, as they are locked into lower rates from previous years. This "rate lock" phenomenon means that sellers are hesitant to trade their existing low-rate mortgages for new ones at higher rates, contributing to a decrease in the number of homes available on the market ( HomeLight ) ( Freddie Mac - We Make Home Possible ).

Another factor influencing sellers' decisions is the impact of capital gains taxes on the sale of their homes. When homeowners sell their property, they may be subject to capital gains taxes if the profit from the sale exceeds certain thresholds. This potential tax burden can deter sellers from putting their homes on the market, particularly if they anticipate significant gains ( Freddie Mac - We Make Home Possible ).

In short, life goes on, and the longer we wait to make a decision, the more life changes.
Please give me a call if you are ready to make that change.

Posted by

Lance Owens RB-24133
808.936.8383

How Presidential Elections Impact the Housing Market: Insights Trends

Tue, 23 Jul 2024 21:23:00 GMT

Aloha, Lance Owens (RB) with LUVA Real Estate.

As a seasoned REALTOR® in Hawaii with two decades of experience, I often encounter questions about how major events, like presidential elections, affect the housing market. With the next election on the horizon, it’s a good time to explore this topic in detail. Based on historical data and expert analysis, here’s a comprehensive look at how the housing market has responded to past presidential elections.

Home Prices: A Steady Ascent

Historical Trends in Home Prices

Why Do Prices Rise?

The reasons behind this trend are multifaceted:

Economic Stability : Often, the underlying economic conditions and policies influencing the market are established long before the election, ensuring stability.
Market Momentum : The housing market has its momentum, driven by factors such as supply and demand, interest rates, and demographic trends, which usually continue regardless of the election outcome.

Home Sales: Rebounding Post-Election

Sales Patterns Around Elections

Factors Influencing Sales

Several factors contribute to this pattern:

Buyer Confidence : Uncertainty during election periods can make buyers hesitant. However, once the election concludes and the political landscape becomes clearer, confidence returns, and so does buyer activity.
Interest Rates and Affordability : Lower interest rates often accompany election years, making mortgages more affordable and stimulating sales.

Mortgage Rates: A Downward Trend

Election Year Interest Rates

Why Do Rates Decrease?

Several reasons may account for this trend:

Economic Policies : Central banks might adjust policies to maintain economic stability, often resulting in lower interest rates.
Market Reactions : Financial markets often anticipate changes and react accordingly, sometimes driving down interest rates in the short term.

Expert Insights: A Broader Perspective

Navigating the Market

Contact Me

For more insights and tailored advice, let’s connect! Your real estate journey in Hawaii is my top priority, and I’m here to help you every step of the way.

Posted by

Lance Owens RB-24133
808.936.8383

Coastal Living In Keauhou Hawaii

Sun, 04 Feb 2024 20:42:00 GMT

This luxury oceanfront condo is as close to the beautiful blue ocean waters as one can get. This private, rare 3 bedroom (2 bedroom plus loft) gem is nestled in the gated, tropical resort property of Kanaloa at Kona. We've seen Spinner Dolphins and Whales breaching just today 02/02/24. Meticulously maintained and thoughtfully updated with a contemporary island theme, this upper floor unit features vaulted ceilings for added elegance. Enjoy morning coffee and evening refreshments on its private lanai with expansive 180 degree ocean views. Relax to the mesmerizing ocean waves, and enjoy the beautiful sunsets. Must see to appreciate! This successful vacation rental with transferrable STVR permit is offered fully Fully furnished and turnkey ready for continued guest enjoyment. What makes this condo stand out is the location in the complex. It is on the point and when on the Lanai you are not only on the ocean but you do not have the view of neighbors on either side. Condo Features include: Updated Kitchen and Bathrooms Newer SS Kitchen appliances New Full-sized Washer and Dryer Granite Counter tops Stone Tile and Carbonized bamboo flooring Central Air Conditioning Private space off primary bedroom for relaxation, reading, tv Sonos speakers for music and radio enjoyment in great room and bedrooms Covered, assigned parking with storage closet Community Amenities: Gated development 3 pools, 3 hot tubs, and multiple BBQ areas 2 lighted tennis/pickleball courts Close to Fishing and Manta Ray adventures Close to beaches for snorkeling, surfing and stand up paddle boarding Close to shopping, restaurants, movie theaters Kona County Club is adjacent to the complex.

For more information click here: Kanaloa 1804

Posted by

Lance Owens RB-24133
808.936.8383

Luxury Hawaii Estate, Energy Independent, 5,400sqft Main Home, 40 Acres

Fri, 02 Feb 2024 01:37:00 GMT

E Komo Mai...Welcome to your exclusive upcountry retreat. Step into 40 acres of pure privacy, where the tranquility of your estate meets the vibrant pulse of Kamuela town just minutes away. Embrace the freedom of living without an HOA, allowing you to curate your lifestyle.

Your custom-built haven awaits, showcasing exceptional craftsmanship with 18-foot cathedral ceilings, three inviting fireplaces, and a harmonious blend of Hardwood Maple, Travertine, and Quartz flooring. The kitchen is a culinary masterpiece, featuring custom Maple cabinets, Granite countertops, and top-of-the-line appliances. Large custom windows seamlessly connect the interior with the breathtaking outdoor landscape.

Entertain in style with a 50,000-gallon saltwater pool, complete with a mosaic accent tile, cascading waterfall, exhilarating water slide, secluded hot tub grotto, and a cozy fire pit. Dive into a pool adorned with decorative tiles featuring dolphins, Manta Rays, and underwater scenes. The Quartz-tiled entertainment area extends to the front entrance, where an outdoor kitchen suite with a gas grill, charcoal grill, wood fire pizza oven, and ice maker awaits your gatherings.

Beyond the main residence, the estate boasts additional structures, including an Artist/Hobby House or optional 4th bedroom (1,300 sq ft), a versatile Multipurpose/Greenhouse (2,400 sq ft), and a fully-equipped Steel Workshop (3,300 sq ft). The property is designed for sustainability with two independent P/V systems ensuring energy independence.

Discover endless opportunities at this private estate—whether you prefer seclusion or entertainment, this estate provides the perfect backdrop. Welcome home to a life of luxury in the heart of upcountry living.
MLS: 706465 Price: $7. 4m

This luxury estate brought to you by LUVA Real Estate Luxury Division

Posted by

Lance Owens RB-24133
808.936.8383

Why Buying or Selling a Home Helps the Economy and Your Community

Thu, 15 Jun 2023 23:41:00 GMT

If you're thinking about buying or selling a house, it's important to know that it doesn't just affect your life, but also your community.

The National Association of Realtors (NAR) releases a report every year to show how much economic activity is generated by home sales . The chart below illustrates that impact:

In Hawaii that number almost quadrupled !

As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community:

“ The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”

Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune notes housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:

“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint. ”

When you buy or sell a home, you work with a team of professionals , including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen.

So, when you make a move in the housing market, you're not just meeting your own needs, you're also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year.

Bottom Line

Each and every home sale is important for the local economy. If you’re ready to move , let’s connect. It won’t just change your life – it’ll also have a strong positive effect on the whole community.

Posted by

Lance Owens RB-24133
808.936.8383

Powerful Real Estate Information - If You Know What Your Looking For

Tue, 30 May 2023 20:40:00 GMT

Aloha! It's Lance Owens from LUVA Real Estate, bringing you some exciting updates on real estate trends. Now, I know reviewing a 143-page report on buyer and seller trends might sound like a real snooze fest, but trust me, there are some gems hidden in there!

So, let's talk about page 39, one of the superstars of this report. I mean, seriously, it's like finding a golden pineapple in a field of coconuts! This chart is a treasure trove of valuable information that caught my eye, and it's got a lesson for all of us.

You see, it's all about understanding age groups and their preferences when it comes to buying a home. We need to think about what our fellow age-groupers like and consider those factors when making our own decisions. And hey, if you're about to level up to the next age group, don't forget to peek at their trends too. You never know what kind of cool stuff you might discover!

Now, let's dive in and talk about the third reason on that chart: "Convenience to Job." Apparently, it's a big deal for folks in their mid to late 20s, but not so much for those in their late 50s. Why the difference, you ask? Well, here's a thought: if you're approaching retirement, maybe you'd be willing to endure a slightly longer commute for a better living space. After all, you've only got a few more years before you can kick back and sip mai-tai's on the beach!

But here's the real kicker: the factors that really stood out to me were the ones with the biggest gaps in percentages across different age groups. Let's take the example of "access to bike paths." The percentages stay pretty consistent until you hit your mid-70s, and then BAM! There's a massive shift. It's like going from riding a bike to riding a golf cart. It just goes to show how our preferences change as we age, and it's something we should all be aware of.

So, here's what I want you to do: grab a piece of paper and create your own list of must-haves and nice-to-haves. And when you're done, don't hesitate to give me a ring! With nearly two decades of experience right here in West Hawaii on the Big Island, I've got the inside scoop to help you find a place that fits your needs like a palm tree on an Aloha shirt.

Mahalo, and I can't wait to hear from you!

Posted by

Lance Owens RB-24133
808.936.8383

Why Buying a Vacation Home Beats Renting One This Summer

Tue, 23 May 2023 18:55:00 GMT

Aloha, Lance Owens (RS) with LUVA Real Estate, along with our partners at KCM, bringing you the latest in real estate news and events.

For many of us, visiting the same vacation spot every year has become a summer tradition that is fun, relaxing, and restful. If this sounds like you, now is the time to consider your plans and determine whether buying a vacation home this year makes more sense than renting one again. According to Forbes, "if the idea of vacationing at the same place every year makes you feel instantly relaxed, buying a vacation home might be a wise move."

To help you decide if making a move like this is right for you, let's explore why you may want to consider purchasing a vacation home today.

Benefits of Owning Your Vacation Home:

No worries about finding a place to stay: It can be challenging to find a rental in your desired location and timeframe. Some popular summer vacation destinations are often booked up in advance. By owning your vacation home, you eliminate the inconvenience of finding accommodations. Bankrate explains, "...a second home can offer a place to have quality time with your family and ensures that you always have a vacation destination."

It's an investment: Home values typically appreciate over time, and the same holds true for your vacation home, especially in areas with growing market demand. This can help increase your net worth over the long term.

Tax benefits: Owning a vacation home may provide tax deductions based on its location. However, it's important to consult with a tax professional before making a purchase, as tax regulations can vary by location.

Retirement potential: If you love the location of your vacation home, it could potentially become your retirement destination. You might consider selling your primary residence and moving to your vacation home later in life.

How a Pro Can Help You Find Your Perfect Match:

As you prepare for summer vacation, consider the option of visiting your second home instead of renting another unit or staying in a hotel. If this appeals to you, a local real estate agent is your best resource. They have the knowledge and resources to help you understand the area and find vacation homes within your budget. Additionally, these agents can explain the benefits of owning a second home.

Bottom Line:

If any of these reasons for owning a vacation home resonate with you, let's connect. There is still time to enjoy the summer in your vacation home.

Posted by

Lance Owens RB-24133
808.936.8383

A Recession Doesn’t Equal A Housing Crisis

Tue, 02 May 2023 18:21:00 GMT

Everywhere you look, people are talking about a potential recession. And if you’re planning to buy or sell a house, this may leave you wondering if your plans are still a wise move. To help ease your mind, experts are saying that if we do officially enter a recession, it’ll be mild and short. As the Federal Reserve explained in their March meeting:

“. . . the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years .”

While a recession may be on the horizon, it won’t be one for the housing market record books like the crash in 2008. What we have to remember is that a recession doesn’t always lead to a housing crisis.

To prove it, let’s look at the historical data of what happened in real estate during previous recessions. That way you know why you shouldn’t be afraid of what a recession could mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data . As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession will be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. Back then, one of the big reasons why prices fell was because there was a surplus of homes for sale at the same time distressed properties flooded the market. Today, the number of homes for sale is low, so while home prices may see slight declines in some areas and slight gains in others, a crash simply isn’t in the cards.

A Recession Means Falling Mortgage Rates

What a recession really means for the housing market is falling mortgage rates. As the graph below shows, historically , each time the economy slowed down, mortgage rates decreased.

Bankrate explains mortgage rates typically fall during an economic slowdown:

“During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers .”

This year, mortgage rates have been quite volatile as they’ve responded to high inflation. The 30-year fixed mortgage rate has hovered between roughly 6-7%, and that’s impacted affordability for many potential homebuyers.

But, if there is a recession, history tells us mortgage rates may fall below that threshold, even though the days of 3% are behind us.

BOTTOM LINE

You don’t need to fear what a recession means for the housing market. If we do have a recession, experts say it will be mild and short, and history shows it also means mortgage rates go down.

Posted by

Lance Owens RB-24133
808.936.8383

Still Waiting For the Bottom To Hit? Look in Your Rear View Mirror

Tue, 25 Apr 2023 19:56:00 GMT

Aloha and welcome to the latest in real estate news and trends. I'm Lance Owens (RS) of LUVA Real Estate, and I'm excited to share insights from our partners at KCM. We're dedicated to keeping you informed about the ever-changing real estate market so that you can make informed decisions. Let's dive into the latest updates. (the chart above is local numbers)

The current state of the housing market is uncertain and constantly evolving. As we head into the spring months, you may have questions about what to expect in terms of inventory, pricing, and mortgage rates. Here’s what industry experts have to say:

According to Selma Hepp, Chief Economist at CoreLogic, competition among buyers is increasing, and housing supply typically grows during the spring. This is also a time when many people are relocating for work or other reasons.

Greg McBride, Chief Financial Analyst at Bankrate, believes that while he doesn't expect significant price changes in a short period of time, the housing market is showing signs of improvement. He notes that a surge in activity with low inventory is a good sign for home prices.

Lance Owens, West Hawaii Association of REALTORS 2018/2022 Board President, notes that the West Hawaii market is heating up again, as seen by the chart below sales hit the bottom in January, sales volume (blue) is up, number of sales is increasing, median price has stayed high, and higher than it was a year ago and inventory has tightened up again with only 87 active FS homes on the market, 13 under a Million and 34 are in the sweet spot of $1-2million, the rest sit between $2-28 million.

Rick Sharga, Founder and CEO of CJ Patrick Company, advises buyers to act quickly if they find a home they love and can afford, as home prices in most parts of the country are not likely to crash. Mortgage rates may also decline only gradually or not at all this year.

Jeff Tucker, Senior Economist at Zillow, notes that the market is still relatively favorable for buyers who can overcome affordability hurdles. However, he cautions that competition for homes may be more intense than expected due to the limited number of homes available for sale.

Bottom line: if you're considering selling your home, now may be an opportune time to do so while inventory is low. For buyers, it's essential to work with knowledgeable advisors to navigate the current housing market successfully. Regardless of your plans, staying informed about market trends and seeking expert advice will help you make confident decisions in this uncertain time.

Posted by

Lance Owens RB-24133
808.936.8383

Why You May Want an Energy-Efficient Home [INFOGRAPHIC]

Fri, 21 Apr 2023 18:54:00 GMT

Some Highlights

Posted by

Lance Owens RB-24133
808.936.8383

Why Aren’t Home Prices Crashing?

Wed, 05 Apr 2023 21:07:00 GMT

Aloha, Lance Owens (RS) with LUVA Real Estate and our partners at KCM, there have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer (not in Kona median price last year $985k, today $1.277m ) . These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“ [H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory (down about 38% on the Big Island) . And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

That lack of available homes on the market is putting upward pressure on prices . Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.

Bottom Line

A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.

Posted by

Lance Owens RB-24133
808.936.8383

Casa De Emdeko Condo Complex - Part 4 of our Kailua Kona Condo Series

Mon, 03 Apr 2023 19:48:00 GMT

Casa De Emdeko has that charming, old Hawaii feel - oceanfront complex located in Kailua Kona, on the Big Island of Hawaii. Welcome to another complex in our series of Condos' on the Big Island of Hawaii that make for a great second home/vacation rental. This complex features two beautiful swimming pools, one of which is a saltwater pool situated right next to the ocean, offering guests a truly unique swimming experience.

One of the best things about Casa De Emdeko is that they allow short-term vacation rentals, making it the perfect place for those looking for a comfortable and convenient home away from home on their Hawaiian vacation, and for guests when you are renting it out. The complex features a couple of different units, one-bedroom, and two-bedroom. Each unit is equipped with all the necessary amenities, including a fully equipped kitchen, air conditioning, cable TV, and high-speed internet. Most units have been updated and upgraded from the original configuration.

The central location of Casa De Emdeko means that guests have easy access to all of the fantastic attractions that Kailua Kona has to offer. This includes the historic “village” area, where visitors can explore the many shops, restaurants, and galleries. There are also plenty of outdoor activities to enjoy in the surrounding area, such as snorkeling, scuba diving, world class fishing, golf, and hiking.

For those looking to relax and unwind, Casa De Emdeko is the perfect place to do so. Guests can lounge by the pool, soak up the sun, and take in the stunning ocean views. There are also plenty of BBQ facilities available for guests to use, making it easy to prepare a delicious meal to enjoy with family and friends.

In conclusion, Casa De Emdeko is an excellent choice for anyone looking to own a comfortable and convenient vacation rental on the Big Island of Hawaii. With its oceanfront location, beautiful swimming pools, and central location in Kailua Kona, this complex offers everything you need for an unforgettable Hawaiian vacation.

Posted by

Lance Owens RB-24133
808.936.8383

Cesspool Conversion Law Update In Hawaii

Fri, 31 Mar 2023 21:03:00 GMT

Nobody wants to be swimming in an ocean of full of wastewater, so let's take a look at what to expect in 2023 with several of the cesspool bills bouncing around still. here is an update on a couple that will have the greatest effect on homeowners:

SB428: Requires each county to develop a comprehensive integrated wastewater management plan and financial strategy. Requires each county to submit its respective plan and financial strategy to the Legislature. This bill was deferred but it will be introduced as a "resolution" which will achieve the same end results

SB426: Requires priority level 1 cesspools to be upgraded, converted, or connected before 1/1/2035, with certain exceptions, and priority level 2 cesspools to be upgraded, converted, or connected before 1/1/2040, rather than before 1/1/2050. Specifies that no penalty or other assessment for any violation shall constitute a lien on the real property and no seizure of property shall be authorized for any violation.

We fondly refer to this bill as the "Paper Tiger". Despite numerous modifications, the latest version renders it unenforceable. As a result, I doubt it will gain any traction among legislators. I have volunteered to explain the potential impacts on home sales and lending several times, but have not received any significant response. I have first-hand experience in selling homes during the shutdown of gang cesspools and understand the implications of non-compliance with environmental regulations. I would be happy to offer guidance on developing a bill that is actually effective. Please feel free to contact me.

On a positive note, I recently participated in an interview with the Grassroot Institute of Hawaii. In the interview, I discuss a few reasons why the current bills are ineffective and suggest better alternatives. ( SEE SLIDES BELOW TO UNDERSTAND VIDEO BETTER)

Posted by

Lance Owens RB-24133
808.936.8383

Excited To Be Featured In "12 Home Renovations That Don't Add Value"

Wed, 29 Mar 2023 06:22:00 GMT

If you’ve been considering selling your home, you may be wondering which home improvements you should tackle to increase your home’s value before it goes on the market. While there are many home renovations that can add appeal to your home, it’s important to know which projects will increase your property value and which won’t.

That’s why Redfin has reached out to real estate professionals like me to help you determine which home improvement projects are worth your investment. Check out my insight on 12 Home Renovations That Don’t Add Value (and What to Do Instead) .

Posted by

Lance Owens RB-24133
808.936.8383

Hawaii STVR (TAR): "Vacation Node", What Is It? News for Hawaii Vacation Rentals

Wed, 22 Mar 2023 18:57:00 GMT

Hey, forget about picturing yourself lounging on a Hawaiian beach - we're talking "Vacation NODE" here (not MODE). You know, that thing that nobody seems to be able to explain. Well, it's the latest proposal from the Hawaii County Council Members and honestly, it's got me shaking in my slippahs (flip-flops) .

I mean, have you ever been to a parade and seen the clowns throwing candy to the kids? That's basically what's happening as this draft gets added to the new TAR bill (which, by the way, is on its 4th draft and hasn't been released yet). They're saying not to worry about losing your "hosted rental" status - just get it designated as a "vacation node." But let's be real, rezoning your property can take years and it's not a common occurrence. Plus, you might be giving up current property rights for something you'll never actually get.

Oh, and don't forget the "ke anuenue ma luna o ke kukui" (*) , even if you do manage to get your property rezoned, the Director or Council can just take it away at any time. Yikes! I'll share the full section of the draft with you below, but let's just say I'm not feeling too optimistic about this whole "vacation node" thing. Please, take 2 minutes and reach out to your local council members and ask them to stop this nonsense.

Hawaii County Council Directory

Here is the actual draft section:

“Division 7. Vacation Nodes.

Section 25-6-70. Purpose.

The purpose of a vacation node is to provide a mechanism to designate a particular area as a suitable location for transient accommodation rentals in areas not included in section

25-4-16(a). Creation of this vacation node designation is intended to spare transient accommodation rental operators from the requirement that they file for a nonconforming use certificate.

Section 25-6-71. Criteria for establishing a vacation node.

(a) A vacation node may be granted if the following criteria are satisfied:

(1) The proposed amendment is consistent with the State land use boundary urban designation;

(2) The parcel or parcels affected are suitable for designation as a vacation node and the designation will not conflict with any existing uses or designations;

(3) The proposed vacation node designation will not place a substantial burden that would compromise the use of existing public infrastructure or services; and

(4) The proposed designation will not negatively impact surrounding residents or the environment in the form of noise, light, air, soil, or water pollution.

(b) Preference for designating an area as a vacation node shall be given to areas that:

(1) Are underserved by hotel and resort facilities and do not have undeveloped and appropriately zoned properties within a fifteen mile radius;

(2) Where one-third of the transient accommodation rentals do not conform to the regulations for the zoning district in which they are located;

(3) Are proximate to outdoor or commercial recreational facilities, such as: beaches; County and National Parks; golf courses; event venues; and similar facilities.

Section 25-6-72. Who may initiate establishment of a vacation node.

Requests to establish a vacation node may be initiated by the director, council, or a property owner or their designee.

Section 25-6-73. Request initiated by the director.

(1) The director shall submit the proposal to the commission with the director’s recommendations, and justifications for the director’s recommendations for the commission’s review and recommendation.

(2) The commission shall conduct and complete at least one public hearing on the proposal within sixty days from the date of receipt of the proposal from the director. Notice of the hearing by publication shall be provided by the commission in accordance with section

25-2-5.

(3) The commission shall transmit the director’s proposal together with its recommendations through the mayor to the council within thirty days from the close of the hearing. The commission shall recommend approval in whole or in part, with or without modifications, or rejection of such proposal.

(4) In the event that the commission fails to act on the proposal within the thirty day period from the close of the hearing, such inaction shall be considered to be an unfavorable recommendation by the commission. The amendment shall then be submitted through the mayor to the council with such unfavorable recommendation.

Section 25-6-74. Request initiated by the council.

Council initiated process.

(1) The council shall refer any council-initiated proposal to establish a vacation node to the director and the commission with requests for their respective comments and recommendations thereon, prior to the first reading of any such amendment.

(2) The director and the commission shall each submit comments and recommendations on the proposed amendment to the council within one hundred twenty days from the date that the amendment is transmitted by the council.

(3) Within the one hundred twenty day review period:

(A) The director shall submit comments and any recommendations to both the commission and the council;

(B) The commission shall hold at least one public hearing on the proposed amendment;

(C) The commission shall transmit the proposed amendment together with its recommendation thereon through the mayor to the council. The commission shall recommend approval in whole or in part, with or without modifications, or rejection of such amendment.

(4) If the commission fails to act on the amendment within the one hundred twenty day review period, such inaction shall be considered to be an unfavorable recommendation by the commission. The amendment shall then be submitted through the mayor to the council with such unfavorable recommendation.

Section 25-6-75. Request initiated by a property owner.

(a) A property owner or their designee, may apply to establish a vacation node on a form prescribed by the director. The application shall be accompanied by:

(1) A filing fee of $500;

(2) A description of the vacation node in sufficient detail to determine its precise location;

(3) Maps and a plot plan of the vacation node, drawn to scale;

(4) A statement of the reasons for granting the request;

(5) A list of elements of the general plan and community development plan that are relevant to establishment of the proposed vacation node; and

(6) Other supportive information, and any other information necessary to a proper determination relative to the request.

(b) Upon receipt of a properly filed and completed application, the director shall have one hundred twenty days to take one of the following actions:

(1) Reject the application to establish a vacation node; or

(2) Initiate the process to establish a vacation node.

(c) If the director rejects an application to establish a vacation node pursuant to subsection (b), the applicant may submit a request to the council to initiate an application to establish a vacation node on the applicant’s behalf.

(d) If the council declines the applicant’s request to initiate an application on the applicant’s behalf pursuant to subsection (c), the applicant may not submit the same or a substantially similar application for consideration within one year following such denial, unless the applicant submits significant new data or additional reasons that the director determines to be a sufficient basis to consider a new application.

Section 25-6-76. Action on a proposal to establish a vacation node.

(a) Within ninety days following the close of the public hearing or public hearings as the case may be, or within such longer period as agreed to by the director, the commission shall transmit its recommendations regarding the application to the council. The commission’s recommendations shall be accompanied by a statement of factual findings supporting the decision.

(b) In considering any proposal to establish a vacation node, the council may issue its approval subject to conditions on the applicant for the vacation node. The conditions imposed by the council shall bear a reasonable relationship to the purpose on the vacation node project designation.

Section 25-6-77. Revocation of a vacation node.

Revocation of a vacation node can be initiated at any time by the planning director or the council.

SECTION 6. Sections 25-1-5, 25-5-3(a)(13); 25-5-22(a)(15); 25-5-32(a)(18);

25-5-42(a)(24); 25-5-92(a)(32); 25-5-102(a)(35); 25-5-112(a)(52); and 25-5-122(a)(45), Hawai‘i County Code, are amended by substituting the word “transient accommodation rental”, or similar term, wherever the word, “short-term vacation rental”, or similar term, appears, as the context requires.

SECTION 7. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included.

SECTION 8. Severability. If any provision of this ordinance, or the application thereof to any taxpayer or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.

(*) "the rainbow above the candlenut tree" or you may know it better as the icing on the cake.

Posted by

Lance Owens RB-24133
808.936.8383

Kona Real Estate Blog | Lance Owens, LUVA Real Estate

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Hawaii STVR (TAR): "Vacation Node", What Is It? News for Hawaii Vacation Rentals