No aloha here.
Maui, one of the nation’s most popular island destinations, is moving to sharply reduce its short-term rental market after county leaders approved legislation aimed at easing a worsening housing crunch.
The measure, known as Bill 9, will gradually phase out more than 6,200 transient vacation rentals in west and south Maui — regions long dominated by Airbnb-style condos built for tourists. Short-term rentals in west Maui will be eliminated by Jan. 1, 2029, followed by South Maui on Jan. 1, 2031.
Mayor Richard Bissen, who introduced the bill last year in the wake of the devastating 2023 wildfires, described the policy as a necessary reset for residents increasingly priced out of the local housing market.
“Mahalo to Maui County Council members and staff for their extensive work on Bill 9 and for taking crucial and courageous steps to improve life for Maui’s most important resource — our people,” Bissen said in a press release.
One of America’s most popular island destinations is sharply curtailing short-term rentals after Maui’s mayor signed a sweeping law that will phase out more than 6,200 transient vacation rentals across west and south Maui over the next decade.
Supporters of the measure say the island’s dependence on short-term rentals has gone too far, especially after wildfires destroyed nearly 3,000 buildings and displaced thousands of residents.
Mayor Richard Bissen said the policy is intended to shift housing back into the long-term market, noting that short-term rentals make up roughly 21% of Maui County’s housing stock — the highest share in Hawaii.
“Bill 9 has consistently stood out as the most immediate way to bring thousands of units back online and expand housing inventory in Maui County,” Bissen said, adding that “for far too long, short-term rentals, offshore investors and private interests have overwhelmed our housing inventory.”
The measure, known as Bill 9, targets a significant share of Airbnb-style units on the island, where short-term rentals account for about 21% of the housing stock.
The mayor emphasized that the law does not eliminate vacation rentals altogether. Thousands of units will remain legal, alongside hotels, timeshares and bed-and-breakfasts. Still, critics warn that shrinking the short-term rental market could carry a steep economic cost.
Council Vice Chair Yuki Lei Sugimura cautioned that the county could lose tens of millions of dollars each year in property and tourism-related tax revenue.
“Bill 9 represents a loss of roughly $65 million annually in real property taxes, along with an estimated $50 million in general excise and transient accommodations tax revenues,” Sugimura said during a special council meeting earlier this week. “The proposed solution is to offset those losses by raising taxes on who? You — the taxpayers — are going to be burdened with those losses.”
The bill was passed to free up homes for local residents in the wake of the devastating 2023 wildfires, which destroyed nearly 3,000 buildings and claimed 102 lives.
Industry groups raised concerns about the measure’s potential economic impact.
“RAM remains gravely concerned that Bill 9 as currently drafted will negatively impact Maui’s economy, restrict property owners’ rights, and result in insufficient reentry of housing units into the long-term market,” Lynette Pendergast, president of the Realtors Association of Maui, said during Monday’s hearing.
Supporters of the legislation argue that the island can no longer prioritize visitor profits over the needs of residents.
Councilwoman Keani Rawlins-Fernandez said the law is about restoring balance.
“Profits are replaceable. Generational communities are not,” she said, describing the measure as an effort to “reclaim housing, rein in tourism, conserve water, correct zoning — all of the above.”
Supporters argue the law is a necessary reset for an island strained by tourism and housing shortages, aiming to return thousands of units to the long-term market while keeping roughly 6,500 vacation rentals, along with hotels and timeshares, intact.
Backers of the law say early signs suggest it is already making housing more accessible for residents and wildfire survivors, citing reported condo price drops of more than 20%.
Grassroots pressure played a key role in advancing the policy.
Members of Lahaina Strong, a local advocacy group formed after the fires, spent months protesting and camping on Kaanapali Beach alongside survivors.
“We’ve been fighting for, I would say, almost two years. We started on Kaanapali Beach just advocating for dignified housing,” organizer Jordan Ruidas told KITV Island News.
“The prices for condos are already dropping … condo prices have dropped more than 20%, so it’s honestly just making it more affordable already.”
