Thousands of Maui Vacation Rentals Just Moved Closer To Disappearing

Maui took yet another clear step toward phasing out thousands of vacation rentals this week, and the vote was not close. The Planning Commission rejected a proposal that would have allowed roughly 4,500 apartment-zoned vacation rentals to continue operating under new hotel-style zoning, with only one commissioner voting against recommending denial.

For visitors who have stayed in the same Kihei or Kaanapali condo for years, this wasn’t just another zoning item on an agenda. It was another sign that many of those units are still heading toward a shutoff date and that the effort to carve out a large exception just got shut down again.

What the commission killed this time.

Bill 9 set this entire fight in motion when it phased out roughly 7,000 apartment-zoned short-term rentals across Maui over the next several years, with West Maui beginning in 2029 and South Maui following by 2031. These are long-standing condo complexes that have operated legally for decades, paying taxes, marketing openly, and serving vacation rental visitors.

The proposal before the commission would have created two new hotel zoning districts covering a large share of those complexes, effectively giving away thousands of units to keep them rented to visitors.

Property owners and supporters argued that these buildings were designed and sold for use by Maui visitors. They talked about cleaners, handymen, and many other residents who depend on these units for their livelihoods. They pointed to county tax dollars tied directly to visitor stays and warned that pulling thousands of units out of circulation would reach well beyond individual owners and local service providers.

The commission’s vote did not resolve any of that conflict, while it did move Maui further down the path that the council chose when it first adopted Bill 9.

Opponents pushed back hard. They said the council already made its decision when it passed Bill 9 and that creating new hotel categories now would undo that choice.

These opponents view Bill 9 as a necessary correction after years of being unable to find a place to live, describing friends and family who are still struggling to secure stable housing since the fire. They urged commissioners not to weaken a policy they believe could free up units for long-term residents.

Several speakers tied their testimony directly to the Lahaina fire, which killed 102 people and left thousands displaced. They argued that housing must come first, even if that means fewer units available to Maui visitors. The commission sided against the zoning change, making it more difficult for the Maui County Council to reverse its course or create a broad carve-out once again.

The Maui vacation rental phase-out timeline is still in place.

Without the new zoning districts, the original Bill 9 timeline stands, and owners, managers, and repeat visitors will now have to deal with that reality rather than hope for the large exemption.

The affected units sit in some of Maui’s most recognizable visitor areas, including Kaanapali and Kihei, where these condo resorts have long offered an alternative to hotels with full kitchens, multiple bedrooms, and extra space for families traveling together. Many returning visitors return to the same units year after year and say that without vacation rentals, they would not vacation on Maui.

Now that inventory will shrink as apartment-zoned condos gradually leave the short-term market. That is, unless the law is changed or struck down in court. What changes is the mix and the range of choices available to visitors who prefer condo-style stays.

Fewer units in certain locations and especially in the lower price ranges likely mean more pressure on what’s left, especially during peak travel periods and in areas that have relied heavily on these apartment-zoned vacation rentals.

Maui lawsuits are already in motion.

Legal challenges to Bill 9 have been filed, with property owners arguing that the phase-out plan violates their rights and amounts to an unlawful taking. Those cases will not move quickly and will not be cheap. Defending the law will cost the county, and if the county loses or is forced into settlements, taxpayers will also feel that impact.

At the same time that apartment-zoned units leave the short-term market, traditional hotels will face less competition from condos. That reality has not been front and center in the public debate, but it is nonetheless part of the shift underway as Maui attempts to reshape its entire visitor market.

Where this leaves visitors and residents.

The Planning Commission’s recommendation does not end the issue, as the Maui County Council can still act, and the courts remain the most likely source for ultimately shaping the final outcome.

What changed this week is that the largest and most visible effort to preserve thousands of apartment-zoned rentals was voted down, reinforcing the direction already set by Maui’s Bill 9.

For visitors who prefer condo stays over hotel rooms, thousands of units that have long served tourists are still on schedule to exit the market over the next several years, barring a significant policy change or court intervention.

For residents who have pushed for more housing inventory, this vote signals the island is continuing on the path it chose when it adopted Bill 9. But whether any of the units being reclaimed by this week’s change will ever become available to resident families is totally unclear.

Do you see this as long-overdue housing reform, or as Maui dismantling something that worked?