Date of Award

Spring 5-2024

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Economics

First Advisor

Monica Das

Abstract

Tourism has been shown to impact housing prices and residents’ ability to afford housing in a host community as well as impacting several other aspects of the host community. This study uses Hawaii as a case study to examine how tourism impacts housing price dynamics and whether there is a different distribution of effects across the different islands due to tourism levels including an aspect about short-term rentals and housing prices. Compiled datasets spanning from 2000 to 2023 of monthly data and from 2019 to 2023 (short-term rentals) OLS and 2SLS regression methodologies were employed to analyze the relationship between tourism (using two proxies: tourist arrivals and tourism expenditure) and housing prices and short-term rental and housing prices along with some GIS mapping. The results of this study support previous literature regarding the extent of the relationship between tourism and housing prices being endogenous variables and tourism having a positive statistically significant relationship with housing prices. There are many limitations to this study with many opportunities to expand this field of research. This research can help to inform policies geared towards tourism and the economic development of Hawaii and can be used to explore the economic well-being of local Hawaii residents.

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