Maui Commission’s unanimous vote to phase out 7,000 vacation rentals aims to address the housing crisis there. But it has sparked significant backlash, dividing the community and highlighting deep-seated issues including economic fears, racism, and xenophobia.
For those complaining about xenophobia, you need to take a breath. If you live in a condo enclave, it’s very likely you and all your neighbors are mainland transplants or visitors.
For those of us who live integrated into the community, Hawaii has very different values than the mainland. Those who blindly refuse to recognize this will not get on well here. Combined with a complicated history, it would be best to not take offense at local pushback.
The rugged individualism of American rights is often at odds with a very permission-based Hawaiian culture. It would be best to keep that in mind.
So, when it boils down to a choice between locals struggling to continue to live where they were born, or the rights of a mainlander to maintain an investment property, perhaps a little perspective and grace is in order.
Agree with most of what you say but also think letting the government do this instead of building affordable housing is not in the best interests of the locals. I think this will increase housing but lose jobs because less tourists.
I agree with about 90% of what you’re saying. Hawaii really is like visiting a foreign county with their own customs and culture. However, you don’t help people out by taking away the rights of others. I get it suck’s having to move away from where you were born. But guess what? This is happening all over the world, not just Hawaii. Unless the government builds affordable housing or subsidizes it. Nothing will change. Prices will continue to increase. Because there will always be people willing to pay those prices for real estate in Hawaii. In addition, those mainlanders who own those investment properties will probably just use them as second homes. The vast majority of people who own them can afford to just let them sit. I really want to know what the local Government will do if after all this, real estate prices don’t magically come down. Then what?
Differing points of view: “this is the U.S” v “white people are colonists” is fine, except when the county government is run to pander to extremists and haters. Mayors here appoint everyone and have an obscene amount of influence. Missen Bissen had threats after the fire, so now he’s letting LS run the show. his own skin more valuable than the island ecoonmy. Tourism down 30% since his theatrical press release
Agree on tourism being down all because Bissen & other government officials send messaging to the public that makes little to no sense. I have family on Maui and a lot of them work in the service industry. Servers at restaurants, cleaners at hotels & such. They are all appreciative of the tourists as they know that is helping locals out with work and tips. The west side is considerably down in hotel/condo bookings due to the governments messaging.
Our community is suffering from skyrocketing housing prices. Instead of blaming, let’s focus on solutions. People are justifiably angry because they can’t afford to live here. Shelter and security are basic needs, and addressing this crisis is a top priority.
However, hotel and socialist lobbyists are exploiting this pain to push their agendas. Hotels fund politicians, and without their support, getting elected is nearly impossible.
Consider these facts:
Hotels have expanded significantly in recent years.
Maui raised property taxes on short-term condos but not the same for hotels.
Second-home owners, who occupy much housing, are taxed less and often leave homes vacant for months.
The bill does Nothing to help local families buy homes. There are no provisions for financial assistance. Without subsidies, locals cannot compete with mainland buyers. We need solutions that genuinely help local families.
Demand that any bill includes real support for local families.
I just received an email from Foster’s Kitchen Restaurant in Kona apologizing for the recently implemented parking fee for downtown Kona and offering $20 off for people to come eat there. These fees and beach fees are yet another way of sticking it to the tourists. It is obvious Foster’s is feeling the effects of the “get rid of tourists”movement. Foster’s is an upscale restaurant in the heart of Kona with a killer view and has always been busy…..until now. Hawaii’s government officials are not only killing the tourist industry…they are quickly killing local businesses. Very sad indeed.
Coconut Grove Marketplace, where Fosterʻs Kitchen is located is owned by developer Brian Anderson of Anekona LLC. The parking fees are being instituted by the land owner, not local or state government.
The entire complex is up for sale with an asking price of $38.4 Million. I think heʻs trying to recoup every single penny he can, so he can continue building luxury homes in Kohala.
Drew808…while the developer may be the one implementing the fees at Coconut Grove, the end result is the same. The businesses are suffering the consequences of those fees and the developer, while perhaps increasing his profits for now, will eventually face the consequences as well as tourists go elsewhere and businesses close. The shortsightedness of not only the local government but also the developers is nothing short of mind-boggling.. They better enjoy their money grab while it lasts, because they are on the path to self-destruction.
These fees are a way to manage tourism; protect resources and move away from a car centered life style
Jeanne F., in the process of “managing tourism” they are also in the process of destroying businesses and livelihoods and eliminating jobs. I don’t know in what world that is considered a good trade-off.
I believe a majority of the STR’s were never meant to be lived in as long term rentals. A lot of my family live in Wailuku area and have been on island since the early 1940’s. We own a condo on the west side & there is no way a family would able to live there comfortably. There is one closet in the main area and two small closets in each bedroom. If you also factor in the cost of that rental would be $3-3.5k per month. We use a local house cleaner, local handyman as well as local contractors when we need to update something. We also purchase our appliances locally from Wailuku area. If we have to sell it, all that income that our service providers will evaporate. I think the main issue is that Maui has not been green lighting housing projects as they want all this open space. The fire accelerated the issue that the county of Maui has been ignoring for decades, housing for locals.
This is a proper intelligent response to a very delicate but strong issue.
Seems to me that you need tourists for the necessary revenue in order to rebuild, there are many new pre fab homes that are easily installed and are fire proof. Creates jobs but it’s quick, And are very modern and attractive . Why not concentrate on the rebuild Instead of trying punishing people who purchased property with their hard earned money. The fire was not their fault and should not be blamed.
One big difference between the supporters of each side of this debate: The STR owners acknowledge the difficulties facing the fire victims and those who need housing. The proponents of the ban have nothing but anger and hate for the other side. That said, the STR owners also understand that the ban won’t solve the problem due to the baked-in carrying costs of their properties. Increasing the supply of long term rentals won’t drive down rents because the HOA fees and maintenance costs won’t decrease. If these people were really focused on housing they would demand faster permitting and expedited construction of new stock. Instead, it is clear they just hate the folks who had the means to buy a unit and rent it.
Eric said it….people Simply want what they want. There is no way a local could afford 4K a month for a fire sale condo mortgage payment and HOA. It’s like me saying give me your mansion in LA cuz I need it. But I can’t afford it. Make Bissen and Green do their jobs and Build homes that don’t have HOA’s, Assessments and High insurance for being on the water. Now you have a viable solution. I don’t get the anger at Any owner of a condo, it’s so much like a toddle having a fit over wanting a pony on Christmas. Its Not doable.
We just returned from a 2 week Maui visit. We were conflicted about going but w/HA miles, we thought it best to use them in case the merger affected use/values. Our fav property is listed as condo & hotel on Minatoya list. Asking around, we were told this property would remain as short-term rental. Our 2nd fav property is listed as apartment, so unless there’s litigation, looks like it may be removed from consideration for us. Our fav beach, Kahekilli was emptier than we’ve ever seen over the 25 years we’ve visited. The parking lot at nearby Royal Lahaina was empty, RL Luau at 1/4 capacity per staff at RH. Husband was 3rd in line at car rental-never had that experience. No wait at airport in regular TSA screening going home. Our friends there w/ businesses relying on tourism are understandably concerned.
HI & Maui gov’t officials have no plan to replace billions of tourism dollars/tax revenue.
What will they say to locals when services get cut? Who gets the blame then?
To be fair, Royal Lahaina made a big deal of saying they were “closing” to public reservations for most of 2024 to accommodate kama aina who were displaced by the fire – so locals would less likely be at the places tourists frequent. We love the hotel and last October, although we could not stay on property, we ate at their restaurant and sat at their bar and overheard many conversations not meant for a tourists ears. Most interesting how the brutal all-day cacophony and inconvenience of a massive renovation all around the hotel property could not be an issue for guests as “they are staying free so what can they complain about?” Timing is everything. The hotel gets their makeover and a guaranteed full-house to help pay for it. Last week we received an invitation to come back and visit the new Royal Lahaina.
Maleko, I agree with your reply. Ran out of space to say RL was closed and is gradually opening now. New restaurant furniture we were told had just arrived from Honolulu and was custom-made for the space. It looked nice of course. Royal Lahaina has had many renovations over the years. We used to stay at RL when we were a couple. Once we had 3 kiddos, the suites and cottages were just too expensive for us. We also like preparing our meals. We also noticed many restaurants we like have reduced menu options. (That’s not unique to Maui.) The RL cottages when we last saw a few years ago were limited in kitchen amenities. Without staying in a condo, traveling is not an option for us. Hoping our last trip was not our final trip. Time will tell.
Several years ago I moved to Maui from Philadelphia after retirement where the racial and tensions are present in most everything every day. I never expected to find myself in the “Philadelphia of the Tropics” which is what I see Maui has become today thanks to politicians like the Mayor and Council. The Mayor talks about serving “our people”, just who is his “out people”? It’s certainly not all residents and definitely not Aloha.
What country is this? I am watching the likes of a third world government confiscating legally owned properties. The governor laid this dirty job at the foot of the Maui Planning Department and the mayor. Maui mismanaged the fire and now they are going after citizens of the United States to take their homes. So sad.
Completely agree Kona. I’m sure the governor gets something from the huge corporate hotels/lobbyists as well as I am sure the corporate hotels have been lobbying against the STR’s as they are direct competitors obviously.
My husband and I have been to Maui many times over the last 24 years, it is my happy place. We are saddened to think that we would not be welcomed to visit there again, it is truly the one place that we would want to celebrate our 25th anniversary in December. I hear reports of tourist feeling uncomfortable while on vacation there, others say: “no problem”. My concern is that we would spend our money (CAN $) and feel like our vacation on Maui would have been a big mistake, and that we would be seen as being a part of the problem…tourism, and the lack of affordable housing for the locals. Most of the places we rent are one bedroom in Kihei and are not suitable for a small family, just too small. We have always respected, enjoyed and supported the Hawaiian people on all of the islands, but would we in turn be appreciated for contributing to the economy? Is there no Aloha anymore? I am worried about the backlash we might experience should we choose to visit again.
Sounds like you will just be fine. I have many Canadian friends who come several times a year and still love Maui and feel welcome here. I think probems mostly come up when people feel “entitled” ….
Hi Donna, we have an STR on Maui & have been back about 8 times since the fires. We have a place on the west side. We have not experienced any bad will from locals at all. When we do go out to restaurants, the local servers and workers are kind and welcome the business to the Maui economy. That is just our experience.
The Hawaii for Hawaiians attitude has always been there, but thanks to the pandering by the Governor and Mayor (where were you when the fire started?) Bissen, it’s more vocal now. Please come to Maui again and support the people and businesses who depend on you for their livelihood. They are the silent majority.
Maui & council consistently reacting with emotions & zero math. The economic impact will have to be put back on local residents property taxes. Is everyone that naive? It appears so, because losing those STR dollars will need to be made up from somewhere. Additionally, the logic that families will be affording (can’t) moving into 1 & 2 bedroom with their families is ignorant (won’t happen). This has nothing to do about housing & everything about ousting “outsiders”. Guess what? If Maui County didn’t approve all these buildings or hotels, and built houses – we wouldn’t be in the situation in the first place. The people that failed Maui are standing in the mirror pointing at themselves.
Hey Alex, I agree with most of your comments except the last one. The people that have failed the locals are too afraid to look in the mirror because they will see their images. Years of mismanaged funds with not a penny invested into low-cost housing. Now they got an out. Blame everything on tourists and off-island condo owners and use the terrible Lahaina fire as the catalyst.
I have written before that we own an oceanfront condo in the affected area. It’s my belief that the buildings in our development weren’t built as apartments. You don’t expect to find apartments on beachfront property, as are the majority of the developments on the West side. You don’t find apartments with little storage and only one parking space per unit. You don’t find beachfront properties where maintenance fees of $1500-$2500 per month per unit. If the property values of these STR units drop due to the change in designation, the cost of the maintenance fees won’t drop. Don’t expect property taxes to drop, as the county can’t afford the hit from the change in property tax designations. Can most families afford these fees on top of either mortgage or rental payments? I don’t think they can. I think the housing shortage is being caused by the desire to keep as much open space on Maui as possible. To the detriment to the people that need housing and jobs.
I can tell you from experience that maintenance fees are always higher in condos that are mostly tenant occupied. Owners who live on property simply get more involved …..owners need to look more closely where the money is spent …. may be they will when they don’t get the income they were getting used to. Tenants don’t pay HOA fees and the whole idea is to house local residents rather than tourists and yes, let’s keep some green space! I hope we will not get more timeshares!
HOA fees are based by law on a 30-year window of needed maintenance and repairs. They are kept at their absolute lowest, but when you’re saving for plumbing, roof, concrete, electrical, painting, tenting, etc. monthly fees are very high. This year, insurance premiums went up 800%. The owners in my building pay $1200 – $1800 a month. So even if the bill succeeds in crashing the market, new owners will be paying this along with everyone else. The tenants pay this through their rent, which is why Minatoya properties are unaffordable.
Compromise is feasible: charge a temporary tax on visitors arriving at all airports: direct the funds to building sustainable housing and transit for locals. Install water meters at all resorts and big hotels and charge them more for their water use. Offer discounts to properties who recycle water.
There is nothing more permanent than a temporary tax.
Like many others, I will not be back anytime soon. My advice to those weaponizing government is to never underestimate the power of the consumer. We have choices. Get ready for a depressing local economy.
No more Maui for me. I am taking my dollars and going to Kona Jan 2-18 – just booked my timeshare. They are killing the goose that keeps laying golden eggs. I wonder what their economy will look like when tourism drops sharply….. you can’t afford a home with no job.
I hope they start with out-of-state owners who have multiple short term rentals in Maui …..I have been a Realtor in Washigton, DC for 30 years and anyone who owns more than 5 rental properties, is automatically under rent control. You also pay a tax penalty if you keep you property vacant for several months. obvously another problem here in Maui. There are so many ways, but the current proposal need to be revised. PS: I only own and manage long term rentals and always had wonderful tenants.
So bad government policies by a one-party state create a severe housing shortage exacerbated by a tragic fire caused by bad government parties from a one-party state. Naturally the one party state governments’ answer is to scapegoat property owners and unconstitutionally confiscate their private property.
Since your criticism lays the blame of malfeasance on Hawaii as a “one-party-state”, I would be interested in your state of origin. There are many one-party-states that bypass taxing residents because they can draw dollars from the federal government in excess of dollars paid to the feds. They then use these dollars for other purposes (Louisiana and Brett Favre come to mind), while providing poor education, poor infrastructure and poverty for their residents.
Well said John. Couldn’t agree more……
Foreign ownership of land or housing in Hawaii and the rest of the United States should be banned, like it is in many other countries, including Canada currently.
Xiong, I think you need to dig a little deeper. The foreign ownership ban in Canada has been amended at least twice and it has so many exemptions, that it has been ineffective and described as a nuisance at best. It sounds good if you just read a headline but I encourage you to read deeper. It has not had any significant effect. It has not lowered housing prices and it has not created more affordable housing. It is not the “silver bullet” to hold up as solution for Hawaii. Mahalo!
That is the problem. Too many people only reading the headlines or worst listening to someone without asking questions.
You’d be surprised at how much agricultural land in Calif is owned and operated by foreign entities. I was, when I drove truck and transported farm to storage or processing crop commodities back in the mid 1990’s.
Aloha editors, wondering out loud here but what would happen to all these short term rentals if the hotels decided to offer significant discounts to entice visitors? My guess is some of these owners crying now will be listing their units for sale? I much prefer a market resolution to this debacle than a govt mandated one. Govt mandated will only result in endless litigation.
If the hotels want the business of visitors to Maui then why do they charge over $800 a day!!! My condo is too small for my family to visit it is made for 2 guests and that is it. How can a family consider long term rent in these short term rentals with no storage, only 1 parking space and rules for lights out at 10:30 pm. Lets all work together to get the State to lower the requirements for permits and start building on some of the dying , dry unsightly land I see all around the island. This may also stop all these new brush fires!
Most hotels are Resorts/Time Shares that people already paid for. You will not see lower prices on their sites because they told owners (before they bought) that hotel prices would always go up, so they need to justify this to new owners ….that said, other travel sites (especially those that don’t give you the name until you have booked and prepaid) have considerably lower prices right now.
Aloha,
“Affordable housing” is a Latin phrase, loosely translated means “somebody else pays”. There is no such thing as “affordable housing”. Everybody in favor of this is looking for a seat on the “free train”. Hawaii will become a third world slum in a decade if this proceeds. All aboard!
Mahalo
It won’t take a decade for Maui to become the largest welfare housing project in the state. So many people have tourism based careers that have paid their rent, mortgages and bills, sent their kids to college while they worked 60+ hours a week. As we are forced to leave, those that remain will have to pick up the bill. Good luck – I won’t bother looking in the rear view mirror.