Vagueness from the Maui County Council is disrupting the island’s vacation rentals. Meanwhile, the hotels are reaping the benefits as visitors ponder what to do. The date for 7,000 short-term rentals on Maui to be outlawed starts on June 1, 2025. That’s when 2,200 vacation rentals on West Maui are scheduled to be terminated if the proposal is implemented.
For visitors planning a Maui getaway, the uncertainty surrounding vacation rentals has become a major concern, as reflected in hundreds of comments we’ve received. With ongoing legal questions, shifting regulations, and conflicting information, many travelers are unsure whether their bookings will remain valid. Moreover, it leaves potential visitors insecure about the status of vacation rentals throughout Hawaii.
What began as a heated policy proposal has become one of the island’s most debated topics. At the heart of the issue is the county’s effort to phase out about 7,000 short-term rentals, about half of the island’s inventory, particularly those in what are termed apartment-zoned areas. However, despite legislation advancing, the process has stalled due to pending economic impact studies, legal challenges, and significant pushback from property owners and the tourism industry.
This confusion continues to leave visitors questioning whether their accommodations will be secure, while rental owners also face an uncertain future. Here’s what one reader shared that is typical of so many comments we received:
“The pending regulations in Maui scared us off. We’re still coming this summer, spending a couple days in Hana and the rest of the week uplands. We really wanted to do a week in West Maui but between the disruptions of the fire, the reports of some residents being hostile and the pending regulations possibly causing a cancellation.” –Comment from Matthew on BOH.
Some argue that the crackdown is necessary to free up housing for residents, while others believe that is not true and could devastate Maui’s economy by reducing visitor lodging options.
What the proposed law means and where it stands.
Maui County has been weighing a proposed law that would eliminate short-term rentals in apartment-zoned areas, commonly called the Minatoya List properties. While the bill has gained momentum, it remains in limbo, awaiting further review by the County Council and an economic impact report due in late 2024 that has yet to be publicly released.
No implementation has begun, and no specific official timeline has been set for phasing out these rentals. However, if the law is enacted, it can impact thousands of vacation rental units. The county has suggested that ample notice would be given before any enforcement takes place. How that would play out remains unclear, given the legal limbo and the proposed dates for enforcement that are fast approaching.
Meanwhile, significant legal challenges are expected, with rental owners arguing that the law unfairly targets vacation condos that have operated legally for decades. The potential for drawn-out heated court battles could delay or halt implementation, leaving travelers and property owners in further limbo.
Travelers fear cancellations, while some say concerns are overblown.
With all the uncertainty, travelers are left wondering if their Maui vacation rental is at risk of being canceled. Some fear booking a condo only to have it become illegal before their trip, while others worry about last-minute disruptions if enforcement begins.
Not everyone believes these concerns are justified. One longtime Beat of Hawaii commenter said, “The Maui legal STRs in apartment zoning are not restricted. They won’t be phased out without years of advance notice. Your reservation won’t be canceled because your condo is being phased out. There is talk about reducing STRs, but that talk has been going on for years, with no actual phase-out laws passed.”
On the other hand, some visitors aren’t taking chances. As Sam C. commented, “Maui’s crackdown on vacation rentals is only going to make the market much more chaotic. Visitors don’t want to book a place if they aren’t sure it’ll still be legal by the time they arrive.”
Hotels stand to benefit while vacation rental rates fluctuate.
As uncertainty looms over short-term rentals, Hawaii hotels stand to benefit from the circumstances. They could see increased demand, which has led to concerns about relationships between the Hawaii hotel industry and local and state governments. Reynolds C. said, “The pandering Mayor demonized STRs, and sale prices have plummeted if you want to sell and get out. Visitor and ownership taxes are obscene and still going up. HOAs have doubled in some cases because of insurance rates rising. The State Legislature could care less. Let’s not forget the Hotels lining the pockets of the elected officials with on and off-the-record support. It’s embarrassing.”
Nonetheless, some travelers are already shifting their plans, opting for hotels rather than risk a vacation rental that new regulations could impact.
At the same time, some vacation rental owners are lowering rates to attract hesitant visitors. Others are holding firm, expecting legal battles to keep their properties in business for years to come.
Keith, a frequent visitor, shared his perspective, “As someone who had visited Hawaii as a family regularly, the elimination of affordable, family-friendly accommodations has hit us hard. To visit and rent several hotel rooms for family is no longer affordable, and eliminating STRs is short-sighted.” JA added, “if STR’s were banned, residents that would need them couldn’t afford them. There is plenty of land and eager investors ready to partner with HI’s government and build affordable housing. The problem is that current government won’t do it. Too much red tape and corruption.”
Meanwhile, others see this as a long-overdue move to rebalance Maui’s housing market. Bill has repeatedly put it bluntly, saying, “All vacation rentals need to be banned from residential and AG zoning across the entire state of Hawaii. Vacation rentals should only be permitted in areas zoned resort.”
Maui’s crackdown fuels Hawaii’s broader vacation rental decline.
Recent data shows that Hawaii vacation rentals have already seen a sharp drop since 2019, with occupancy plummeting to 52%. The uncertainty surrounding Maui’s regulations only adds to the turbulence, leaving visitors and rental owners in limbo.
What travelers should do now.
West Maui rentals on the Minatoya list are still scheduled for the chopping block on June 1, 2025, although whether anything will happen is unclear. If your rental is on the list, we suggest calling the rental host or property manager before booking. Consider refundable booking options. Use a credit card in the event of any issues arising.
South Maui rentals appear completely safe to book over the next few years. The new proposed date for their elimination “could” come as late as January 1, 2029.
Be prepared to leverage any price shifts as vacation rental supply and demand fluctuate in response to the ongoing uncertainty.
While the fate of Maui’s vacation rental market remains unclear, travelers can expect more changes in the months ahead. As the Maui County Council continues its debate and legal challenges unfold, we must all navigate an evolving landscape regarding Hawaii vacations.
Please share your thoughts and concerns!
Beat of Hawaii © photo at Kaanapali Beach Maui.
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The current mayor of Maui county is pretty clueless. He introduced this insane bill to save face with the local victims of the fire because the county failed us. We All AGREE we need and deserve housing. The government has denied additional housing for decades, they failed to keep up infrastructure and maintain fields largely contributing to the spread of the fire.
The hotel management has had several closed door meetings with the mayor, yet he claims that this choices to divide residence and push hotels is a byproduct of doing what’s right.
When he last spoke in south Maui, he said he only wanted 2000 units that were built for workforce housing. What he doesn’t understand is there are not 2000 workforce housing units. The workforce housing that was constructed such as Honokowai Palms, housed workers from Kahului and California on a temporary basis to build resorts, when the resorts were finished they moved back. We Need You To Build More Homes! Stop The Madness