Maui has unveiled plans to drastically curtail the island’s vacation rentals. This brazen initiative, aimed to help fix Maui’s severe housing shortage, will eliminate more than 7,000 term rentals in the next 18 months.
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Apartment Districts are pages 1-3 of the attached spreadsheet.
“all Apartment District properties to their intended long-term residential use by removing the exception provided to those properties built or approved prior to 1989, and fully discontinue Transient Vacation Rental use in Apartment Districts by July 1, 2025, for West Maui TVRs and all others in Maui County by January 1, 2026,”
Hope this helps to clarify the News Flash information with the spreadsheet 🙂
Maybe the reason for re-zoning. Change zones to residential or apartment and then ban STRs in those zones.
You guys have really kicked ass on this story, congrats! The whole sorry mess is no doubt headed for court, and there will be repercussions nobody’s thought of yet. We will be back on Maui in January to assess.
ATM, agree with you that BOH has really done exceptional work on this very sad story. From my perspective the problem is that the editors of BOH are intelligent forward thinking good citizens and residents of Hawaii.
They have thought this thing through and offer sensible solutions. Unfortunately the governor and Maui mayor along with so many of Hawaii’s politicians are totally incompetent, out to lunch, and have demonstrated that they are totally unfit to serve the public in any capacity. Just a complete mess for everyone that could and should have been avoided.
Hi Daryl and AT.
We sincerely appreciate your nice words!
Aloha.
Article on Garden Isle Newspaper today
“Big drop in passenger count at Lihu‘e Airport”
“LIHU‘E — The number of people getting off domestic passenger flights at Lihu‘e Airport dropped to its lowest level for the first full month of spring since the COVID-19 pandemic.”
It’s actually lower than 2019.
It’s not a Maui problem. It’s a slowing economy problem coming out of a super bubble of everything. And it is only going to get worse.
Almost all STRs have never been through a real jobs recession.
BOH editors Rob and Jeff. With regard to Bill’s observation in todays TGI news, which I saw in the digital edition. From your perspective on Kauai, do you see this as typical of the shoulder season May/early June slow down, or do you sense that the cancer of the tourist economy downturn is now spreading through all the islands? Your analysis of the situation would be helpful to all of us.
Thank you and Aloha to all.
Hi Daryl,
I’m not with Beat of Hawaii, but though I’d chime in.
That article showed that the numbers are lower than before 2019 for this time of year. Yes, it is slower this time of year, but it was slower than all the proceeding years.
26 states are already in recession, the MSM won’t tell you this. CA is leading the way with steady and increasing layoffs. For too many years we’ve had too low of rates, too much spending, and now it is starting to fall apart. We need a big recession to clear out all of the speculators and debt-ridden businesses.
Visitor Stats:
dbedt.hawaii.gov/visitor/dailypax-dashboard/
Mahalo Bill, appreciate your getting in the discussion and the link to the article. Agree with you that fiscal management and planning at all government levels leaves much to be desired. The government over taxes and spends like “drunken sailors” and the results are devastating.
Aloha.
Hi Daryl.
Thanks for asking. Visitor traffic to Kauai was down by about 12% last month compared with the prior year. It’s too soon to see how many will shape up, but we’d guess it will be about the same Seems line with much of the state’s desire for less tourism.
Aloha.
Mahalo Nui for your update and thoughts. When we were last at our Princeville timeshare in November/December the place was packed with people who came to Kauai because of the Lahaina fire. We’ll be back in summer and late fall and long time Kauai friends are really concerned about how the economy will be affected. Their livelihoods depend on tourists spending money at local businesses.
Aloha.
“The Fourth Amendment of the U.S. Constitution provides that “[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”
The ultimate goal of this provision is to protect people’s right to privacy and freedom from unreasonable intrusions by the government. ” law.cornell.edu/wex/fourth_amendment
I don’t know. Maybe prices will increase 4x for food, gas, utilities etc. Rich people prices don’t matter but some i’ve met pinch there pennies and that’s how they became wealthy. I talked to a native Hawaiian and he explained. We care about the land. Not technology, Not tourists, Not hotels. Most of the native Hawaiians were run out of Waikikki and now all the businesses are taken over by Asians etc. We are taught to live off the land and tourists come and tear it all up. Native Hawaiians live a simple laid back life and it’s about the land and beauty of the islands that we call home.
Aloha BOH,
Can you please investigate this further and determine if the last two pages of “the List” are included as STR that will no longer be able to rent short term? My understanding is that they will be exempt.
There is so much info flying around today, some are saying the whole list, some saying not the last two pages. Please see the headings of the spreadsheets and info within.
Mahalo
Of course the Governor has turned this back to the counties. He knows it will not withstand any legal scrutiny so he’s trying to get a little political cover when it all goes sideways. And it will go sideways when challenged in the courts.
You can’t kill the golden goose and still expect to harvest 24 karat eggs. Tourism is pure gold in Hawaii and taking that away in Maui will just exacerbate a problem that has been caused by bureaucratic incompetence for a long, long time.
Follow the bills since January 2023. Poised for eminent domain. Locals that are brainwashed that this is in their best interest can vote while non resident owners can’t. Lahaina town is the low hanging fruit & there is deliberate reason for building delays. Devastate the economy, lower property values and then buy at new fair market value in the guise of rescuing the victims. Not to worry since they will be in free housing or controlled rent with moratorium on evictions. There aren’t enough of us that can see what has been going on since before the Maui fires. Unemployed can’t qualify for a mortgage at any price. Please post law firms taking on the class action against this.
I will not be returning to Maui. As a regular visitor for the last 20 years I who has contributed thousands of dollars to the tourism economy, I am very disappointed that the state/county would target STVR’s while continuing to support the hotels that are all owned by large out of state entities. Maui’s economy is going to further collapse. Let’s just see how you do without the tourism dollars and with locals who have no place to work.
Our upcoming trip to Maui may also be our last. We love Maui and its people but we will no longer be able to afford a vacation there. This truly makes us sad because we have been vacationing in Maui for almost 20 years.
Mahalo Lee for your support the past 20 years. Please do not turn your back on us or judge us for the ignorance in action right now. Please stay tuned. Our rights will not be stomped on without a fight. We still need your support. We appreciate your opinion and need to hear from you. I understand your disappointment. Many of us are fighting against this and are ashamed of our government. We pray that the lightbulb will go on over the blind followers of Green and Bissen.
Building affordable housing instead of “temporary housing” Is a way better idea, except there is no such thing as affordable housing in Hawaii, let alone Maui. With the fact that material has to be shipped here ( and our shipping cost if ridiculous) then union labor cost, then purchase of land, then with developers putting in all the infrastructure by themselves ( which gets tacked on to the price) because the county won’t do it, and not to make mention of the permit processing, water meter cost etc….affordable …ppfftt…no can. Way too much red tape and county lack of working with the developers. So, I guess spend on temporary housing and take away STR…..such a joke.
HOA fees in or near Kapalua are around $1,500 a month + mortgage + water/sewer + electric. What local can afford this ?
Robert — You can add property insurance to that list. That is if insurance companies don’t pull out altogether because of the fires. There is a new article out that suggests the Governer expects this to happen. At which point he intents to resurrect the “tourist Green Fee” and the the tourists will foot the insurance bill
Correct me? That fire started due to down power lines. Like PGE. Paradise CA. Every time you push Green energy the Utilities companies loose site of maintenance. Most Hawaiian electric poles I saw were over loaded. Seems like the blame is pushed under carpet. What is wrong with Maui for such a lack of foresight. Re zoning for higher density near the airport and by The Old sugar Cane Mill seems a good start. Not the direction for removing many small landlords who saved their money for yrs to have a little rental income.
John C
I had read the Hawaiian government and utility company officials were invited and came to CA for a session in “lessons learned” on the Paradise fire as well as the other big fires CA experienced. They came but implemented nothing, which is a shame because CA has been able to reduce the big deadly fires over the past few years. It was probably a boondoggle for them to CA.
So sad because the Maui fire was preventable!
My husband and I strongly disagree with doing away with vacation rentals.
The local’s that live in West Maui work there. They will be devastated to not only to lose their homes but also jobs.
The taxes from these vacation rentals bring massive amounts of money to Maui.
Renting a condo over a hotel affords vacationers more amenities and flexibility, especially for families.
My husband and myself have rented vacation condos for years and would consider a different destination if this should happen.
Sincerely
When you visit Maui, what you see is dysfunction. The empty, brown, nonproductive fields, the high grasses, the water poured over huge golf courses, the big hotels, the years it takes to do the simplest thing. The slow, slow pace of any kind of road or public infrastructure. The terrible looking wiring along the streets. The endless fires. It’s worse than Alaska! And here we have 8 months of impossible winter and miles of highway. It’s not impressive, and whatever is wrong is not the fault of the public, or visitors. This is like a shell game, covering up governmental incompetence.
Don’t forget the corruption!
We love the slow pace, open space, long grass and there is a place for hotels. There is also a need for STRs that are more like a home away from home which we welcomed and benefit from. Our government and the $ they have been given by all of us is what is in question. That is where the dysfunction lies. It is sad that many locals honestly believe this will be a good thing. A shame they can’t see the big picture. There is no place like Hawaii and Maui no ka oi.
One item that was brought up in the article that is being overlooked is the already struggling health care industry in Hawaii. Are the hospitals going to want to put up the traveling nurses in $1000 per night hotel rooms plus taxes and parking fees? Highly doubtful. This disaster of a bill is going to wreak havoc on every aspect of life for the people of Hawaii. Yes, this may eventually be shot down in the courts, but so much damage will be done in the mean time that the islands may never recover. This is a really tough way to learn that votes have consequences.
Will shuttering seven thousand rental businesses affect the economy Maui economy? For many Josh Green ultra rich hotel chains it will not, but locals will suffer. Other Hawaiian islands have the benefit of cautiously watching how Maui handles the impending law suits for compensation, and overwhelming economic loss, loss of jobs and effect on communities. Josh Green has divided the people by blaming everyone but the government, instead of bringing us together to help each other.
How can they eliminate time share rental when I paid thousands of dollars for the unit to use when I come to the island
The tax revenue that will be lost and local jobs of those that help maintain units will also be lost. Political leadership needs to explain to the cleaners, handymaen, local restaurants, grocerystores and tourist dependent business how removing their main source of income will make life better when there’s no jobs left. Tough to build infrastructure without tax money.
If the county and state were serious about solving the issue they would build more affordable housing. Supply and demand is economics 101 and the political leadership at the state and local level are failing badly.
Lawsuits are the only certainty from this shortsighted hotel driven cash grab.
I decided to look up one of the properties (2128 Illiili Road) on the Minatoya List. Turns out it’s for sale! Any locals want to buy it? Just $7.999 million – what a steal, as it was initially listed (way back in September, when it first hit the market) at $9.999 million. LOL.
If the county removes 9,200 total units @ $100,000 per year in income each unit, that is $920,000,000 in income lost, at a TAT/GET rate of 17.4166% is $160,227,200 in lost tax revenue annually.
That is a ridiculous amount of tax to wring out of Maui County residents, who are already paying astronomical rates for everything.
For that kind of money, the county should take land by eminent domain and build actual affordable housing. The real problem is that the county has been under building residental units for the past 25 years and they have to demonize vacation rental owners as a scapegoat.
This will crush our tourism economy, and it will trickle down to everyone in every industry!!!
Thanks for doing the math. Your point only makes sense if they want to “solve” the (lack of) affordable housing issue.
Have you read the U. N.’s 2030 agenda? Do you know what SDG’s are? Are you up to speed with the WEF’s plans?
If eliminating tvr’s kills jobs, and people leave Hawaii because of no jobs, then it will be easier to rebuild Lahaina with “less people, more open space” – which is their stated goal.
8 months after Lahaina burned down, how many people have been allowed to rebuild? How many permits have been issued?
Lahaina strong? More like Lahaina gone.
Exactly. The people that voted on this and for Green are blinded. They are the ones that will lose Lahaina which they are fighting for. They are like a cult, one train of thought and passionate about it because they believe they are doing the right thing. Unfortunately, if you listen, watch and check backgrounds, there aren’t many that are educated. Any that are a probably part of the agenda. Don’t mean to sound like a conspiracy theorist but follow the bills since Jan. 2023 and the facts since.
Steve.
The state already has a plan for eminent domain. That wording is in the bill where the state takes control of about 1/2 of the upper portion of Maui including all of west Maui.
I’ve read the bill but cannot locate the number for you sorry
Just because passed legislation contains language such as eminent domain does not make that language legal. There are copious examples of legislatures and congress passing laws which are struck down as either illegal or unconstitutional. Whether or not this bill does pass legal muster, it is safe to say it will be tied up in the courts for years
Didn’t take long to exercise eminent domain for the waste site.
Doesn’t seem to matter what’s legal at this point.
Look at the decades long political scandals in state government. The latest is exactly that…the latest
Some of us know this will happen to Lahaina town and the reason why we stayed packed for eviction in other parts of West Maui. We can not trust the government, the police that didn’t allow people to escape, the power utilities- no water that day or sirens. There are too many things that went terribly wrong that day. Friends with boats bringing supplies and driving the backside of the island were the ones that came to our rescue immediately and consistently, even with police trying to stop them. Now bills passing that will destroy our economy. FYI the abandoned cars, appliances & rubbish are from locals not visitors. Blame is misplaced for distraction and votes.
As a resident of Hawaii, the situation for local housing is indeed a dire one (with Maui being the extreme example due to the fires). It is not a unique one as other areas of the country/world are having similar issues with the high cost of housing. This is a direct result of that lack of building affordable housing over the last 25yrs. In other locations, some of the locales are addressing this by encouraging and incentivizing the developers/owners to do this. It is a step in the right direction.
What I see here is a land grab that will end up in lawsuits for years to come. Where is the plan for building more suitable and affordable housing for locals?? The millions spent defending these lawsuits will be wasted money.
There’s a condo complex in Napili almost empty. STR owners willingly contacted FEMA to convert to long term either did not hear back or were told they didn’t have all the amenities (handicap). Many that were living here for 6 months to a year before going to college left. A huge complex is almost finished in Lahaina by the bypass. There are complexes in Lahaina that look untouched other than smoke that sit empty. Why this ploy to destroy the economy? We had too many people living here but not enough professionals. People have moved here without contributing or have taken jobs from long time locals. Young adults leave for education and careers bc there aren’t careers here other than tourist related. This will affect all commerce.
No one who is not wealthy will be able to afford a vacation in Maui now that the hotel cabal has bought off all the Maui politicians to support this debacle. Should there be STVR oversight yes. Should politicians be able to make decisions that adversely affect homeowners? Hell no. Bottom line is statistics show that all of these changes would result in less than 5% increase in homes for locals and massive profits for the hotel industry.
Yes what a train wreck…..it seems that there is no clear thinking about how the people will pay for these properties if we handed them to them What is the number of homes that were not insured because owners did not have the money to pay for it, then how much were they making before the fires, Now how much are they making? And where will they get the money to buy these properties that will be forced to sell or be foreclosed on? And Where will they work if the tourists can’t afford to pay the hotel rates? It just seems no one has how this is linear thinking….and to say that its tax revenue of 35M But they will only lose 3 m if they close them makes No Sense. Its like cutting off your arm cuz you have a broken finger!
What a train wreck! Lets look ahead…..
Locals may rent (or buy) one of these units….. There will not be enough parking for them.
These places are often 1 bedroom…how many people will they fit into this one bedroom?
Each property will elect new board members (again assuming they are locals living in their own units). Do you think they will keep up with the Huge property improvements and expenses associated with the upkeep? They will cut costs (eliminating more employees such as landscapers).
I know the STR we stay at has a monthly fee of around $1800 and they have a special assessment right now for 5 years that I believe is another $1500-$2000 each month. What local can afford the mortgage Plus the monthly upkeep fee???
Notes from the GAD
May 02, 2024
Mayor and Council Proposing to Increase Real Property Tax Rates
by: Gary Saldana, REALTORS® Association of Maui
In the mayor’s proposed Fiscal Year 2025 Budget, he recommended increasing real property taxes for
the owner-occupied, non-owner-occupied, TVR/ STR, and Commercial/Residential classifications.
Thank you Mayor from the bottom of my broke *** for assisting the Locals who do own property here to suffer more And tenants wonder why rents go up. Good job 🙁
I guess we got to pay for Government stupidity
LOL raise our tax so we will have to consider that when forced to rent out long term. The higher the costs, the higher the rents. Who do they think they are helping?
It is so obvious that the politicians are catering to the hotels. What’s laughable is that they make these statements and decisions with a straight face, knowing full and well that millions of dollars in tax revenue will be lost. I don’t know how they plan to make up the shortfall. And it’s even more funny that they honestly believe that it’s going to help locals afford real estate and it’s going to make housing more available and more affordable.
“I don’t know how they plan to make up the shortfall.”
There is no plan. They don’t plan. They listen to the voice with the most votes and/or money behind it. Planning has nothing to do with it.
Earlier today I asked why they selected all the older buildings and after reading all the comments here I’m thinking maybe their focus or hopes are that those owners will sell their properties and then the new owners will demolish them and re-build Maui.
Is this a crazy thought?
When I saw this approval vote yesterday I was sort of shocked. Even more so when I looked on the list and our place is listed as inside the “apartment district”, but built in 1980. We’re a small place, about 22 spaces, but looks to be eliminated as a “timeshare”, for now after our early 2025 visit perhaps for the last time. Wow!
According to the article, the mayor is fully aware of the damage this will cause to the economy, the loss of jobs and the loss of tax revenue. The only reason I can think of as to why a politician would inflict this kind of damage on his constituents would be for personal gain. Time to look in to just how the mayor(s) and governor will benefit from this legislation.
BOH, you used the words “first to be cut” in your title. Didn’t you mean “first to be targeted”? This is not even close to being a done deal.
My property (Maui Vista) is on the list. If there was ever an example of hotels leading this charge, Maui Coast Hotel in Kihei is less than 100 yards from my property on the same side of the street. Maui Coast Hotel just built a second hotel wing which is due to open this summer.
How is my property a concern of being in a “residential area” when Maui Coast Hotel is less than 100 yards away? More money for hotels. Litigation at Maui County residents’ expense (not the hotel industry) will be interesting and expensive. I hope Maui County elected officials disclose All the political consultants they met with regarding this topic before public records requests via PRA’s start flowing in!
The headline reads:
Mayor Bissen proposed local legislation aimed at eliminating more than 7,000 vacation rental units by January 1, 2026.
He still has to wait for the rest of Maui government to join him.
This isn’t law (yet).
Visitors will read it as a done deal. Tourism has already drastically decreased with few future bookings coming in. They are concerned about booking and then receiving notice last minute that it has been canceled. This happed to many Maui bookings when condos have turned to long term. Can’t blame the visitors. Too many mixed messages. It is safer for them to go elsewhere until the dust settles or stay in a hotel or timeshare. The media updates alone have affected tourism. Rates in STRs continues to drop yet high rates keep getting mentioned.
When texting my contacts to contact Tasha Kama-Maui council, a Lahaina Strong supporter contacted each person on my group text harassing them that this law will win bc of aloha spirit. Ha! Aloha Spirit is not about slapping the hands that have fed us. I had a positive response from my texts & many calls asking what they can do. Make your voices heard. Look for legal assistance 4 class action suits. Its time to fight. We didn’t think this law would ever pass. Its senseless, ignorant & will hurt all. I hv security at my home- my address got out. A shame.
Does this pending change impact your Maui travel plans?
Yes. We have resided on Kauai for 40 years and occasionally take “staycations” on Maui to enjoy the island and visit friends. No more.
There is no way we will pay exhorbitant hotel costs, especially knowing that profits will go to multi-national corporations.
The hotel industry must love Mayor Bissen and Governor Green, and must really $upport them for this misguided policy.
Witnessing this, you need your head examined if you start a business or deploy capital on Maui. It’s only a matter of time before the corrupt Hawaii state government takes it.
I have neighbors that spend 2 was a yr and others just a few months in their homes. Otherwise they sit empty. They paid cash and on top of that are putting in over 600k remodeling. There will still be buyers on Maui and if these are the types of buyers that will come in they are probably savvy enough to buy now before Maui becomes the playground to the rich again. I built when Kahana Ridge was considered affordable housing, now nearing 2 mil. Remote jobs became popular since Covid. They don’t need to work here but most of the locals do. We are not know for our education or drive. Hospitality is all most know how to do.
I understand the tension that Maui feels regarding needing to provide housing for its residents, so I don’t begrudge them this change. With that said, I think it will also mean that we will find other places to visit, which makes me sad. But the reality is that many, many of the places on that list are places that more budget travelers might stay. Our last visit was at Papakea, but I have considered condos at Maui Eldorado, Noelani, Kuleana, Nohonani, and others in the past. We certainly spent our fair share on Maui, but we cannot budget 1k/night for lodging, and I fear that this change will require that level of spending. It is what it is, but we will miss Maui. We wish all those living there the best.
The additional issue is non-resident owners. Not only do they artificially drive up the cost of a home (the local wages can no longer buy a home) but the net income leaves the islands. It is a lose-lose for Hawaii and the locals.
Key point: what’s the point of high tax revenue for locals if they have no stake or ownership of the underlying assets? In that scenario even finding an affordable spot for a coffee truck becomes impossible
Randy – I’m a non-resident owner. Blanket statements about “non-resident owners” whose “net income leaves the islands” are not entirely accurate. Granted, for some, what you say may be true. But for many like me, the amount of property taxes we pay dwarfs any income (and the last 3 years there’s been none). Plus, the TA/GE taxes our guests pay, plus what they spend on the local economy, stays in Hawaii. You may be right about the “lose-lose” for Hawaii and the locals, but for different reasons than you think.
Plus cleaners, maintenance persons, furniture, supplies and the local commerce. There will be much more loss than tax income. It is a lose lose situation. I asked everyone on my contact list yesterday to write Tasha Kama about how this will affect us. She is on the Maui council and is our ally. She asked to send letters to Tasha.kama at Maui county.us. Wasn’t sure if the email address with the @ sign would populate. She said that more show up for this law than against. I talked to many friends that say when they’ve joined the zoom meetings they constantly get cut off. Please make your voice heard and write her.
Do you know how much even a restaurant waiter makes? They make great money and with more than one employed in a household can afford in a non resort area. Typical of anywhere else. If you live on the beach on the mainland it is high rent. Maybe saving up and keeping a job would help qualify to buy a home as many locals have. Do we need 50k+ trucks and hanging out at the bars, not working when surf is up? Different priorities here. We all have the same opportunities to get an education , get a good job, save a buy a home. Before this attack on tourism we had many great opportunities to make a great living and pay our own bills. Maui is a desirable/high value area. Limits on STRs should have been placed not after the fact
This is the great experiment. I predict some real problems for Maui. As for me I’m done with the islands. I suppose natives will applaud my comment about not returning.
Wow!
I can think of anything worse for Maui. Thousands of jobs lost, millions of dollars of lost tax revenue, billions of lost property values. The tourist and many STVR owners are not voters, but hopefully the thousands of unemployed locals will vote this short sighted clown out of office.
When there is a crisis you can always expect government to act in a draaconian, restrictive manner. This legislation is an example of it. This is clearly an unconstituional taking of property without due process of law. I imagine this ill be tied up in the courts for some years to come, unless they too, react with crisis induced panic. If allowed this will make Maui even more expensive than it already is. The hotels must be beaming broadly as they will reap the benefit of this legislation. Hawaii should just advertise: Closed to Tourists!
“Popcorn – check, JuJuBee’s – check, Raisinette’s – check, Super Gulp – check.” Settling in for a Really interesting show…
Best Regards…
The 2nd order effects of this move are hard to predict, but a resident-only STVR policy seems like a great idea to keep the island’s assets in the hands of locals.
Yes it’ll mean lower tax revenue, but it’ll likely also make for a higher quality of life for residents & tourists
So if only locals own STR’S ….Hmmm…they did not pay their fire insurance…how are they going to pay over 5K a month AND live somewhere else? That idea is non sensical…But if you are saying they are going to live in their STR’s then how is it better for tourists…who are paying over 800 a night for a room…you must think tourists print money on the mainland to afford that…for a family to come to Maui now is at least 10K for a week…flights, car, food and activities plus a room at a hotel…You won’t have tourists ….layoffs are already happening in our area. Weekly….big numbers! STR’s are the reason many people can afford to come to Maui
This will be interesting to watch.
I am sure that the hotel companies are super stoked at the moment. We thought prices were nuts before …
-Stan