After months of delays, Maui’s most explosive tourism and housing decision is now locked in for July 2. That’s when the County Council Committee will finally take up Bill 9—a measure to wipe out legal short-term rentals from apartment-zoned areas in South and West Maui. And this time, the vote looks real.
The debate started in early 2024 but became urgent after the August fires. After dozens of hours of testimony, it’s all coming to a head. Visitors, residents, and property owners are bracing for impact.
What the bill actually does.
Bill 9 would pull the plug on thousands of Maui vacation rentals that are fully legal today. These aren’t underground listings or backyard ohanas—they’re condos in apartment-zoned areas like Kihei, Wailea, Lahaina, and Napili, many of which have been hosting visitors for decades. If the bill passes, they’ll no longer be allowed to rent for less than 180 days.
Thousands of units are on the line. Owners followed the rules, paid the taxes, and got the permits. But under Bill 9, those permits would be taken away, gradually erasing a big piece of Maui’s visitor lodging without in any way replacing it.
The arguments for and against.
Supporters say Maui’s housing crisis has reached a point where tough choices are the only choices. To them, vacation rentals in apartment districts are blocking working families from finding a place to live, and phasing them out is the fastest way to open things up. They point to post-fire displacement, rising rents, and the sheer number of residents now spending half their income just to stay housed.
But opponents say the whole premise is flawed. These units weren’t designed for full-time living in the first place. As one owner said, “Nobody’s raising a family at Hale Kamaole.” They argue most of these condos will never become affordable housing—they’ll just sit vacant or be snapped up by part-time residents with deeper pockets.
Others warn of a broader fallout: lost jobs in cleaning and maintenance, crushed condo values, and the disappearance of one of Maui’s few remaining mid-range options for visitors.
Visitors are caught in the middle.
If you plan a trip to Maui, this vote could impact your lodging, albeit not immediately. Many of the condos under threat are places visitors have relied on for years, even decades—affordable, legal, and close to the beach. But even with a phase-out period built into the current bill, and law suits soon likely to commence, some owners aren’t waiting. Listings are already disappearing, and a growing number include disclaimers warning of future restrictions.
If you’ve booked in Kihei, Kaanapali, Napili, or Maalaea, it’s time to double-check. Contact the host, confirm your reservation status, and review your cancellation policy.
One reader told us, “We booked six months ago for a 40th anniversary trip. Now we don’t even know if we’ll have a place to stay.” One thing is certain. This will drag on even after the committee and the full council come to a decision.
How we got here.
The push to reclaim apartment-zoned rentals isn’t new, but after the Lahaina fire destroyed over 3,000 homes, it gained traction fast. This spring, Maui was awarded $1.6 billion in federal housing aid. With that came signals from the state and county: zoning reform was now part of the deal.
Critics see the proposed ban as a political move to show Washington that Maui is “doing something” to unlock the funds. Supporters say it should have happened years ago. Either way, momentum built, deadlines moved up, and now the council is under pressure to deliver.
Economic stakes are enormous.
Phasing out these rentals won’t just impact property owners—it could pull hundreds of millions out of Maui’s economy. County analysts estimate the loss could top $250 million a year when you factor in property and lodging taxes, visitor spending at restaurants, grocery stores, tour operators, and cleaning, maintenance, and management jobs.
Some worry Maui is headed for a repeat of 2020’s visitor collapse—only this time, it’s not a pandemic, it’s policy.
Still, not everyone is backing down. One resident told the committee, “We cannot solve the housing crisis if these units stay in the hands of tourists. If that means fewer visitors, so be it.”
How we got here.
The push to reclaim apartment-zoned rentals isn’t new, but after the Lahaina fire destroyed over 3,000 homes, it gained traction fast. This spring, Maui was awarded $1.6 billion in federal housing aid. With that came signals from both the state and county: zoning reform was now part of the deal.
Critics see the proposed ban as a political move to show Washington that Maui is “doing something” to unlock the funds. Supporters say it should have happened years ago. Either way, momentum built, deadlines moved up, and now the council is under pressure to deliver.
What comes next.
The July 2 meeting is set for a full-day showdown. It’s open to the public and will likely include one last round of testimony before the committee votes, which could change everything. If Bill 9 passes, it heads to the full council for final approval.
There’s still time to weigh in. Travelers, residents, and owners can submit written testimony before the vote—details are expected to be posted here: https://www.mauicounty.us/agendas/
We’ll monitor this closely and report what this means for future trips. If you’ve got a Maui vacation on the books—or even just in mind—this is the moment to pay attention.
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These articles are very interesting. I live near the North shore so I am not as affected as those in Kihei and Lahaina.
there will be a law of unintended consequences….the tourism numbers are already down across the islands….recession will occur as a result….
This is for the HI connected politician for the resorts owners….nothing more that creating a monopoly….more HI corruption at its finest.
The County Council Committee has the authority to make changes to short term rentals. However, these changes should only be for new rentals going forward and shouldn’t include rentals that are already on the market. Thousands of people made their economic decisions based on the rules that were legal at that time regarding short term rentals. You can’t all of a sudden pull the plug and change the rules midstream. Existing rentals should be grandfathered in and any changes should be for new rentals only.
If this legislation passes, it will still face a stiff and probably long legal challenge. My wife and I looked, Very briefly, at buying a condo in the Kaanapali/Napili area. For us, it was out of the economic feasibility for us. Assuming a 2 bedroom 1 bath condo is being considered for long term rental, what will the cost be to the renter. Assume that the current daily rental rate will decline a bit since things like linen service and cleanings will not be needed that 2/1 condo may rent for “only” $1,400 a week. But wait, the owner will still have to pay the HOA fees, property taxes and insurance. That will likely drive the monthly rental fee to over $6,500 for a place that does not have much storage space, minimal laundry facility and probably does not have at least one dedicated parking spot. Perhaps my figures are not up to date or accurate, but I do believe they are in the realistic realm.
As a former resident, I come back on business every few years for 2 weeks on O’ahu & 2 weeks on Maui. Have always stayed at the Maui Sands (Maalaea) as it is central for my sales trips. With this ‘Ban’ on vacation rentals will Severely impact my business.
If this bill were to pass, there is a sunset period and would not be immediate. And also, likely lawsuits and an injunction.
Unconstitional – this is defacto illegal seizure of property and violates the 4th Amendment —
Example – Regulatory Taking: This occurs when government regulations significantly restrict the use of private property to the extent that it deprives the owner of its economic value or beneficial use, even without formally transferring ownership.
Yes and if they pass it there will be a raft of lawsuits both for the losses already incurred and the losses incurred from there actions.
I watched some of the testimony presented at the County Council: supporters and opponents. This is headed for a vote by Council up or down. The shame in this is the Mayor’s proposal, while good intentioned, is poorly conceived. If his proposal fails to be approved the work force housing victims will continue to suffer; and if his proposal is approved, the work force housing victims will continue to suffer. The Council is faced with a lose lose proposition. Can a leader emerge that can redirect the work force housing objective to a success? At this point, I don’t see anyone on Council that has the aptitude to pull off an alternate program. This is a dismal forecast of impending failure no matter what the outcome of the Council vote.
I already turned my condo into long-term rental. Low rent and a Canadian was so happy to live here Six months for such low rent. They will live here for six months and Canada six months. So much for locals to rent. Locals won’t have jobs so they won’t even be able to afford the lower rents. This Bill 9 is such a bad idea.
The. Boots on the ground
Workers..i.e. cleaning.maintainence.
Booking..etc.generally are paid..cash.only.
No.vacation.no.sick.pay.
No.medical.no.dental.no.vision.care.no.pensions.its.not.a.career.nor.a.job.loss..the.local.workers.are.given.only..Gigs.by the STR.industry..the..hotels.on.the.other.hand.provide.career..futures.for.the.local.people..paid.vacation
Meals..sick.pay.medical.benefits.insurance.retirement.pensions..the
Honourable.mayor.Bissen..sees.the..sham.of.the
STR.industry.only.the
85.percent.out.of state
Onwers..are..getting.ahead…
If true, then why do the cleaners I know much prefer working for the STRs? They make 3X the money and are not slaves to the hotels. They can afford to get their own health and other insurance at those rates. They have friends who can sub for them when they go on vacation want a day off, etc. So much more flexibility. The cleaners I know wouldn’t have it any other way.
Don’t fool yourself. If the hotel jobs were such glorious positions, all the STR cleaners would be working for the hotels, and the hotel workers wouldn’t have to have 2-3 jobs to make ends meet.
Our STR pays our staff very well, manager is way over 200k a year and maintenance workers bill at $50 an hour, both are under 20 years old. All employees have medical and dental. If you work over 20 hours a week in Hawaii medical is required by the state. It’s expensive to live in Hawaii and you need to pay well to keep staff on your property.
We have never lost an employee to a hotel, they just don’t pay well.
That’s my experience of over 40 years as an STR owner and manager.
Appreciate hearing this from the horses mouth (not that you are a horse – lol).
Thank you!
All of the elected officials are in the pocket of big hotels and do the bidding for the hotels. The easy fix here is just raise the minimum wage to at least $30 an hour from the $14 is now but the hotels would put a stop to that with a call to the major and governor.
you must work in the hotel industry being their cheerleader.. If people want to work for the hotels, they can, if they don’t want to they shouldn’t be forced to. One gal with kids complained about STR’s because she works 3 jobs at hotels and sleeps in her car, hotels don’t want her sleeping in her car in their parking lot. The council made it sound like closing down STR’s she’d get one.. that won’t happen, that was very misleading. It’s not the STR’s that created a problem it’s the activists and the greedy hotels here that send $ off island – no one is getting a condo unless they buy one, there are 500 for sale. What will happen when/if they pass bill 9? and the housing crisis isn’t solved (beause it won’t be) then who will the Mayor blame?
Good thing I stocked up on more popcorn… I stick by my previous prediction that 10 years from now, the Lahaina Fire and its after effects will still be front page news in Hawaii…
Best Regards
Maui is being gentrified there will be no locals on Maui in 10 -15 years the new Lahaina will be like kapalua/kaanpali/wailea
And hotel workers will be brother in from the mainland to serve the wealthy vistors
Or……like Molokai has been able to do, push out the tourists by making it uncomfortable to “vacation” in one’s homeland as the visitor is working to push out the locals. Most locals can care less about tourists…….take away the Aloha and make things uncomfortable for non locals…..Hawaiians deserve better…..everyone always taking from them because they came with money and think they are special……Put all Hawaiian Lands Back In Hawaiian Hands!!!!! Shame on anyone who spouts that there will be no locals left in 10-15 years.
Sadly it’s already starting the county/government wants the locals out
Many stories before Covid said this would happen now after Covid and the fire so many locals are being priced of the island
It’s gentrification
I dint agree with it but it’s the reality of what occurring
Look at the state’s statistics (via the “visitor statistics” section on the Dept of Business, Economic Development and Tourism website) as to inbound air passenger totals day by day for Maui vs 2024 and 2019. Seems like traffic is down about 5% vs last year and between 25-35% vs 2019. It will be interesting to see how that impacts the county’s income.
Their income won’t be an issue.
They just finalized a 1.6 Billion dollar payment from HUD.
Victims just got awarded a 4.2 Billion dollar settlement. That is bound to stimulate the economy considerably as they spend it.
The construction industry will be a major source of revenue and stimulus over the next 5-10 years, with tourism taking more of a back seat.
These are all facts, with the last fact being announced recently by the Mayor.
I don’t think Maui County is worried about revenue from tourism one bit, no matter what happens to it and no matter how reluctant visitors are to visit.
Now, what happens after the 5-10 years are up? Well, that is another story…
So, those who lost or will lose their jobs in hospitality will become construction workers?
As far as how will people of Maui spend those 4.2b remains to be seen. I remember two very different outcomes with covid stimulus checks. Some took care of their lives and families, paid off some or all of their debt and handled the stimulus money responsibly. Others splurged on shopping, dining and fancy trips they were unable to afford in the past. Guess who did better?
Story of life. Alot of difference between $1 short or ahead at the end of every month. Keep busy taking care of our place get exercise, self worth, and increased property value. Finally get to our 60s with house paid off and glad to have relatively good health to ride ebikes, play with grandchildren and snorkeling. Those are blessed that ask for it and are thankful.
Point taken about hospitality jobs. I guess they’ll just have to “pivot” to those wonderful hotels with their health and vacation benefits all the proponents of this bill go on and on about.
Regardless of how the benefactors spend the stimulus, all of that money will nonetheless stimulate the economy in a big way. The benefactors may end up worse off, but the targeted businesses of their spending sprees will be better off.
Pat G:
Yes and No. A fair chunk of the settlement money will line the pockets of lawyers, and it is possible that a fair chunk will end up reimbursing insurance funds already paid. How much is being taken by HI state and/or Maui county that will actually get spent on Lahaina infrastructure? How many owners will take the money away from Hawaii and live elsewhere rather than rebuild? I would not assume all of it gets spent in Maui over the next 5-10 years.
How many affordable homes could be built, including infrastructure, rezoning, eminent domain use to free up land, etc. with $1.6 Billion?
As a tourist I just go to the Big Island where the prices are less, locals friendly, and snorkeling fantastic with alot less people. I don’t like hotels. I like STRs. Big Island is Big. Lots of room for everyone.
Oh my goodness !
We all knew this was coming,unfortunately.
Mayor Bissen and the County Council will just not acknowledge that this could be an economic disaster.
If the federal government. gave Maui $1.6 billion then start building affordable homes for the local people.
The building of homes should have started a long time ago.
This is just ridiculously planned and is suspicious of big,Big hotel corporations giving $ kickbacks to eliminate rentals and pushing tourists to extremely expensive hotels.
Once again, the rich are putting policies in to put down the middle/working class like all of us.
Maui build homes for your people and take care of them first.
Take care
Aloha
The tone of this article shows an obvious bias towards allowing these short term rentals. Many countries are doing the same. Housing intended for locals to rent have been converted to short term rentals. We already have vacation condos specifically for this purpose. Having tourists in condos and homes in residential areas is not only disruptive but also reduces housing for locals. It’s also driven up rental prices for existing apartments.
I hope these get banned and locals don’t leave the island because of lack of housing while mainland owners profit. They really need to drastically increase property taxes for non residents unless they rent their house for at least 180 days.
An opposing opinion and criticism of the article would be a lot more valid if a viable solution is offered, taking into account all the facets and long term implications of the proposed ban and the likely economic outcomes.
For example, would you happen to know what is a realistic purchasing power of an average Maui family that would eventually move into these condos and pay the market value rent and association fees? Realty vs wishful thinking?
Which law exists on the books that would force an owner to rent their property out or they might opt to leave it vacant and for personal use only? How will that solve a housing problem?
How many affordable housing units have Maui built in the last 10-20 years? If not enough, why not?
These actions by Maui County won’t stay in Maui County other islands are watching and already moving forward with plans to duplicate the ban.
Many of these condominiums are on leased lands and those lands are mostly held by local family’s. The land value under these condominiums has already dropped and will slide down with all of the values dropping. Basically everybody is getting a haircut, property values drop by more than half, land lease gets renegotiated way down, all maintenance employees get laid off and we sub out the landscape/pool maintenance.
Property now gets classified as owner occupied and the property tax’s on my unit from $23,000 to $2,300 annually, the ACH taxes no longer apply so not paying $40k a year in taxes. Some will sell off portions of their units to other people. Life will go on.
Should this bill pass, the most recent version of Bill 9 presented by Bissen himself states that the STRs would not be phased out until July 1, 2028. 3 years from now. That is an important detail.
Visitors booking for stays within the next 3 years have nothing to worry about.
Please don’t damage the lives of the people of Maui more than they are already being damaged by needlessly scaring away visitors.
“Some worry Maui is headed for a repeat of 2020’s visitor collapse—only this time, it’s not a pandemic, it’s policy.”
ban
Correction: It was also policy that closed down the island to visitors in 2020. Whether you think was a good policy or a bad one or somewhere in between, it was hardly mandatory.
As for this current mess – stock up on popcorn.
Hi – thanks for the reporting. I am one of the vacation condo owners are here is our message to tourists – you are welcome and these condos are not at risk of any immediate phase out. Even the most conservative changes mark the phase out in three years. The other is in five years. The majority of these condos are in resort areas in full service buildings and a much better value than hotels.
Testimony is very emotional. But it’s also missing important facts – while there is a housing affordability crisis in Maui (and all of the US), a simple search shows that over 450 units are currently available for rent today – and are sitting empty. It’s possible that they are too expensive for wages that should be higher – and the County could raise minimum wage and create rental subsidy programs for local residents. Legislation banning STRs is a distraction. It comes with massive negative consequences and will not solve root issues.
Raising minimum wage raises overall cost of living aka rent.
I have been a partial owner in West Maui for almost 20 years. We have rented our place to many people who have loved their time in Maui and returned year after year! We use many local businesses to keep our unit up and running and recommend many others who offer many amazing businesses for tourists to enjoy ! What is going to happen to all those businesses ??? It takes 6 owners to pay for the yearly costs of our unit … how is this a realistic answer for the average person in Maui. This will not fix the problem !! What are the politicians really trying to do and what’s in it for them? Why are they not building affordable homes for their people? How are the people going to survive another massive drop in tourism… was Covid not enough to recover from ?? Do they have a plan to help the people survive that? I am so upset and so worried for the lovely people of Maui. I hope common sense prevails .