Maui County To Phase Out Thousands Of Short-Term Vacation Rentals For Addressing Housing Crisis On Island

Written By: Anweshan Acharya

Anweshan Acharya

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July 25, 2025 12:13 PM

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In a move aimed at resolving Maui’s severe housing crisis, the Maui County Council’s Housing and Land Use Committee passed Bill 9 on Thursday. The legislation, which has gained widespread attention, seeks to strike out thousands of short-term vacation rentals (TVRs) in apartment-zoned districts and convert them into long-term housing for residents. This moves comes at a time when the island is still grappling with the aftermath of the deadly Lahaina wildfire of 2023, which destroyed vast swathes of the town and aggravated an already alarming housing shortage.

Background: A Growing Crisis

Maui, known for its enchanting landscapes and world-class tourism, has faced a long-standing housing shortage. But the devastating wildfire in Lahaina, which claimed lives and displaced thousands, has further escalated the island’s housing dilemma. Amid this crisis, many locals have struggled to find affordable housing, with rental prices soaring as short-term vacation rentals infiltrate residential neighborhoods. As a result, Mayor Richard Bissen introduced Bill 9 to address this growing issue by eliminating vacation rentals in apartment zones.

The proposal comes after widespread protests by wildfire survivors and activists, who have demanded that the county prioritize housing for local residents. In response, the council voted 6-3 in favor of the bill in the Housing and Land Use Committee, which now awaits sanction by the full council. With all nine council members serving on the housing panel, the committee’s approval signals strong support for the initiative.

Key Provisions of Bill 9

Bill 9 is designed to close a loophole that allowed condo owners in apartment zones to rent their units out for short stays of days or weeks, often through online platforms like Airbnb and Vrbo. The new bill requires these units to be rented for a stipulated time: a minimum of 180 days, effectively putting an end to the short-term rental business in these districts.

Under the bill, the West Maui district, which includes the fire-ravaged Lahaina area, would have until 2028 to comply with the new regulations. The rest of the county, including other areas with heavy tourist presence, would have to wait until 2030 to phase out vacation rentals.

This initiative is expected to create approximately 6,127 new housing units by converting short-term rentals into long-term residential options. The University of Hawaii economists have predicted that this would increase the county’s housing stock by about 13%, a significant boost to the availability of affordable homes for local residents.

Economic and Social Implications

While the bill promises to address the long-standing problem of housing shortage, its implementation is not free of controversy. One of the most significant issues, is the potential economic impact on the tourism sector. Bill 9 would reduce visitor accommodations by 25%, leading to an estimated 15% drop in visitor spending and a 4% contraction in the county’s overall gross domestic product.

The county’s own analysis suggests that most of the income from vacation rentals currently flows off-island since 94% of the owners of these units are non-residents of Maui. Therefore, the loss in revenue from short-term rentals would largely affect lodging, rather than other sectors of the economy.

Opponents of the bill, including the Rentals by Owner Awareness Association, have raised concerns about the broader social impact, particularly on workers in the service industry. Alicia Humiston, the association’s president, expressed worries that small business owners and workers who maintain these vacation rentals, such as housekeepers, plumbers, and electricians, would be directly affected by the loss of rental units.

Additionally, some critics have pointed out that the aging condition of many condo buildings and high maintenance costs may make them unaffordable to local residents. As a result, the question arises whether the new units will truly be accessible to those in need of affordable housing, they ask.

A Broader Global Trend

The move to eliminate short-term vacation rentals on Maui is part of a growing global trend where popular tourist destinations are pushing back against overtourism. In May 2025, Spain mandated that Airbnb block more than 65,000 listings for violating local regulations. Similar protests against the impact of tourism on local communities have taken place in European cities such as Barcelona and Venice. Maui’s action mirrors these concerns, as the island grapples with the balance between supporting tourism and protecting the well-being of its local residents.

As Maui continues to develop its long-term housing strategy, the county is also exploring other measures, such as building new housing, investing in infrastructure, and cracking down on illegal vacation rentals. Mayor Bissen has made it clear that this initiative is part of a larger vision to ensure that tourism does not “hollow out” Maui’s neighborhoods, and that future generations can thrive on the island.

Next Steps and What’s at Stake

With the Housing and Land Use Committee’s support and approval of Bill 9, the next step is for the entire Maui County Council to vote on the measure. Considering the composition of the council, it is widely speculated that the bill will pass. Once signed as law by Mayor Bissen, the bill will highlight a turning point in Maui’s approach to managing its housing crisis.

For Maui residents, especially those displaced by the wildfire, Bill 9 represents a glimmer of hope. They feel that finally the island’s housing crisis will be addressed with long-term solutions. The broader implications of this legislation—both for the local economy and for future generations—will likely be felt in the years to come. Only Time will tell how beneficial such as measure is in the long haul.