Maui seeks to eliminate 7,000 vacation rentals

Maui may eliminate 7,000 vacation rentals after fire decimates housing supply

What you probably already know: The deadly fire in Lahaina on the island of Maui last August exacerbated an already chronic housing shortage in the area, and that is prompting officials there to consider limiting the spaces that can be rented out to tourists. Maui Mayor Richard Bissen has proposed legislation that would eliminate more than 7,000 vacation units, about half of what is available on the island, by Jan. 1, 2026.

Why? About half of Maui’s families spend more than 30% of their monthly income on housing, and the median price of a single-family home on the island is a staggering $1.04 million, according to the Hawai’i Community Foundation. There were fewer home sales in Maui last year than any of the last 25 years and an estimated 20% of people living on the island can afford to buy a home there. The fires made the situation worse, displacing as many as 12,000 people.

What it means: Residents opinions on the mayor’s proposed rental limitations are reportedly mixed, with some expressing concern about the jobs that could be lost when fewer tourists visit the area. The Maui Planning Commission heard nine hours of testimony on the topic on Tuesday and delayed its decision on the mayor’s legislation until July 9. The county planning commission is recommending passage of the new law.

What happens now? If the new law goes into effect, 2,200 units in West Maui would have to cease short-term rents on July 1, 2025, and the rest of the units, which are mostly in Kihei and Wailea, would cease at the beginning of 2026.

Check out the Formidable Podcast — informational interviews with women leaders on news-driven topics, spotlighting timely and thought-provoking issues facing our world.

Listen on Spotify or Apple Podcasts.