Maui Vacation Rental Ban Moves Forward Amid Growing Outrage

Maui’s housing crisis is about to clash head-on with its visitor economy. Thousands of short-term rentals may be on the chopping block—and big changes are already in play.

Bill 9, a long-debated measure from Mayor Richard Bissen, would phase out short-term vacation rentals in apartment-zoned districts across Maui, including areas in West Maui and Kihei. In these neighborhoods, Maui vacation rentals have long blurred the line between residential and resort.

While the mayor initially cited around 7,000 units affected, that estimate has been revised. Recent planning documents suggest only about 2,200 units may ultimately be eligible for conversion to long-term housing.

Now, just days before a key Council committee hearing (details below), new amendments are reshaping the conversation. One proposal would delay enforcement until 2030, and another would exempt timeshares entirely. For supporters, these are necessary refinements. But for critics, they’re a sign of retreat.

What’s happening on June 9.

On Monday, the Maui County Council’s Housing and Land Use Committee will consider Bill 9 in a hearing that is expected to draw strong testimony from every side. Participation in person, online, by phone, or in writing will be accepted.

This is not a final vote, but it marks a decisive step. The committee may advance the bill, amend it, stall it, or send it to the full Council with recommendations.

Several key amendments are now on the table. One would delay enforcement of the vacation rental ban until July 1, 2030. Another would exempt legally established timeshare units. A third would require formal notice from the Department of Finance to affected property owners.

Mayor Richard Bissen introduced the bill more than a year ago. His administration has framed it as part of a larger housing strategy. County officials say the bill targets a root contributor to Maui’s housing shortage: the loss of residential units to short-term rental use in apartment-zoned areas. We anticipate hearing from Bissen on Monday.

One BOH reader who owns a timeshare raised concerns about how things are headed: “We have loved visiting Maui once or twice yearly for over 20 years. Own 4 weeks of timeshare in Kihei… but the overall costs will now bring our stays to a single 2-week visit. We’re likely nearly giving away the other 2 weeks when we go to sell them.”

How we got here on Maui.

The push to regulate short-term rentals on Maui has simmered for over a decade but surged into public view after the August 2023 wildfires destroyed over 2,200 structures. With long-term housing even scarcer now, Bill 9 gained momentum as a way to return more units to resident use quickly.

Based on Maui’s land use rules, the bill targets visitor accommodations in apartment-zoned districts—areas that were never intended for transient use. Many of the affected properties are tied to the so-called Minatoya List, a legal carveout created years ago that effectively grandfathered short-term rentals in certain apartment-zoned buildings. Most of these units were not built for long-term tenants, and in most cases have never been used that way.

Roughly 85% of the properties in question are owned by people with out-of-state mailing addresses. A University of Hawaii Economic Research Organization (UHERO) study analyzing Maui County property tax records found that of the 6,172 units on the Minatoya List, the vast majority are owned by non-residents.

Supporters of the bill say reclaiming this rental market segment is critical to easing pressure on resident housing, especially in communities where entire buildings long ago became de facto hotels.

A new timeline, another divide.

The new proposal to delay the ban until 2030 has drawn immediate reaction from both sides. Supporters of the original bill say the delay undermines the urgency of the housing crisis and has triggered strong backlash from those demanding faster action.

Some critics on social media questioned whether passing a ban with a five-year runway would accomplish anything, calling it a political move to appear active while postponing any real or substantive action.

At the same time, property owners argue that even with the delay, the proposal and the bill have destabilized their investments and threaten retirement income. Many impacted units are small, lack appropriate facilities, and are in aging complexes that offer no viable path to long-term residential use. Some longtime owners have said their properties were never intended for full-time living, with no parking, laundry, or nearby schools or services.

As one reader told us, “These last-minute changes are gutting the bill. It’s politics as usual, and residents are tired of it.”

Economic fears mount as the market shifts.

Maui’s housing market is already reacting strongly. According to the REALTORS® Association of Maui, the median condo sales price fell nearly 25% year-over-year, from $962,500 in April 2024 to $727,000 in April 2025. During that same period, active listings jumped from 536 to 910 units—a nearly 70% surge in inventory.

Some see that as a market correction. Others interpret it as early signs of far deeper instability in the Maui vacation rental industry.

A study by the University of Hawaii Economic Research Organization (UHERO) projects that if the bill passes as originally proposed, Maui could face a $900 million annual decline in visitor spending, 1,900 lost jobs, and a $60 million reduction in property tax revenue by 2029.

Opponents also point to a recent survey indicating that only 8% of short-term rental owners would convert their units to long-term use. Most said they would either sell or leave them vacant. As one commenter said, “Taking away visitor rentals doesn’t equal adding housing. These aren’t affordable units—and they won’t magically become them.”

The timeshare carveout.

One of the most closely watched amendments would explicitly exempt timeshare units from the phase-out. Supporters argue that timeshares operate under different rules than vacation rentals, with fractional ownership structures and fixed usage schedules that make them less disruptive.

But critics question why timeshares should be treated differently. They point out that both involve short-term stays by non-residents and often exist in the same apartment-zoned complexes. The distinction, they argue, is arbitrary, and it has sparked growing anger among those who see it as another loophole for well-connected property classes.

The current version of Bill 9 introduced by Council Chair Tasha Kama includes the exemption in clear terms. Earlier drafts, including the mayor’s original proposal, did not. County officials have since suggested that clarifying language could be added, but there is no consensus on how timeshares should be handled.

Legal limbo ahead.

Even if the committee advances the bill on Monday, final passage could take months, and lawsuits are all but guaranteed no matter what happens next.

Property owners have relied on long-standing county approvals, business licenses, and tax classifications to operate legally. They argue that if the county reverses course, it could amount to a regulatory taking under state or federal law—something they say they will simply not allow.

Multiple legal challenges are underway related to Maui’s handling of short-term rental permits and zoning enforcement. Bill 9 would almost certainly add more.

Will this change Maui for visitors or residents?

Supporters say yes—eventually. If even a fraction of the phased-out units reenter the long-term housing market, it could help meaningfully ease the shortage. Others argue it will push rentals to other islands, other parts of Maui, or unregulated channels.

There’s also a cultural dimension. For many residents, the bill represents a chance to reclaim neighborhoods overtaken by transient visitors.

But there’s a risk, too. As one reader warned, “If you make it too hard to visit Maui affordably, people will simply stop trying.”

How you can participate.

The Housing and Land Use Committee meets on Monday at 10:00 a.m. The session will be broadcast on Akaku Channel 53 and streamed online via Microsoft Teams.

Testimony will be accepted in several formats. Participants may testify in person at the Council Chambers, by phone at 1-808-977-4067 (code: 461 899 61#), or online via Microsoft Teams by visiting mauicounty.us/agendas and clicking the meeting link listed for June 9.

Written testimony can also be submitted by email to [email protected] or through the eComment system on the same site.

What do you think?

Should Maui delay the ban until 2030? Should timeshares be exempt? Have you stayed in one of the condos that could be affected, or do you own one?

Your voice matters, especially now. Join the conversation below or submit testimony to Maui County before Monday’s hearing.