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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255 thoughts on “Thousands Of Maui Vacations Rentals First To Be Cut”
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