Will Maui’s Zoning Changes Affect Your Vacation Rental Choice in 2026? Here’s All You Need To Know

Published on December 22, 2025

Maui’s effort to phase out thousands of vacation rentals took an unexpected turn after the passage of Bill 9, a law that aims to convert vacation rental properties into long‑term housing units. This initiative is part of a broader strategy to combat the housing crisis on the island, which has been exacerbated by the devastating Lahaina wildfires of 2023. While the law initially sought to phase out approximately 6,100 vacation rental units, recent discussions on Zoning Resolution 25-230 have opened up the possibility of preserving many of these properties, sparking further debate on how best to balance tourism and housing needs on Maui.

Bill 9: Phasing Out Vacation Rentals for Long-Term Housing

The passing of Bill 9 has made headlines as it directly impacts vacation rentals operating in apartment zones throughout Maui County. Under this new law, the county plans to remove transient accommodations from areas zoned for apartments, with the aim of freeing up these properties for residents, especially those displaced by the wildfires. The move is an effort to address the severe shortage of affordable housing and ease the pressure on the island’s tight housing market. The long-term rental stock is expected to increase by approximately 13 percent as a result of this measure, providing some relief for local residents.

Although Bill 9 seeks to phase out a significant number of vacation rentals, local hospitality stakeholders have raised concerns. Property owners and tourism businesses argue that the plan could negatively affect Maui’s tourism infrastructure, as many visitors choose the flexibility of vacation rentals over traditional hotel stays. The phase-out period is set to extend until 2029, giving property owners time to adjust to the new regulations.

Resolution 25-230: A Potential Compromise for Vacation Rentals

In response to pushback from local residents and hospitality companies, Maui’s County Council is considering Resolution 25-230, which aims to allow a portion of the affected vacation rentals to remain operational by placing them in newly created hotel zoning categories. If passed, the proposal would allow these properties to continue operating as vacation rentals under the H-3 and H-4 districts, which would accommodate properties that were previously in A-1 and A-2 zones.

This adjustment could result in 1,500 vacation rentals continuing to operate, as opposed to the original 6,100 slated for closure. The zoning change has been welcomed by some industry leaders, such as Caitlin Miller, the executive director of the Maui Vacation Rental Association, who emphasised the importance of creating zoning flexibility to allow properties to remain active while meeting the county’s broader goals for long‑term housing.

The Housing Crisis and Maui’s Balancing Act

At the core of this issue is Maui’s severe housing shortage. Many island residents, especially those affected by the wildfires, are struggling to find suitable housing. For many years, Maui’s popularity as a tourist destination has led to a growth in short-term vacation rentals, some of which were inappropriately situated in apartment‑zoned areas. Now, with the tragic fires still fresh in residents’ minds, the county government has prioritised long‑term housing solutions. Yet, as Maui continues to rely heavily on tourism revenue, this creates a difficult balancing act between providing adequate housing for residents and maintaining the island’s tourism-driven economy.

Travel advisors and tourism industry professionals need to stay informed about these changes, as they will directly impact the availability of vacation rentals for future travellers. This shift could lead to a decrease in inventory for short-term accommodation options in popular areas like Wailea and Kaanapali, making hotel stays more prominent for visitors.

Impact on Maui’s Tourism and Local Economy

While the county seeks to address the housing crisis, the tourism sector has expressed concern about the reduction of rental options, which could cause price increases and a shift in visitor preferences. If the proposed zoning changes are approved, many properties will continue operating as vacation rentals, but there could still be fewer available units as the overall stock shrinks. Furthermore, potential changes to rental availability might encourage tourists to seek alternative destinations within Hawaii, which could impact the local economy in the short term.

As Maui’s tourism economy heavily relies on vacation rental options, especially for visitors who seek a more home‑like experience, these policy shifts could result in a long‑term impact on travel patterns and traveller choice. Tourism businesses and local stakeholders will need to adapt to these evolving regulations while continuing to engage with local authorities and visitors.

Maui’s Complex Path Forward

Maui’s decision to phase out vacation rentals in certain districts has set the stage for ongoing debate between the county’s housing needs and the demands of the tourism industry. With the proposed Resolution 25-230 offering a potential compromise, the future of vacation rentals on the island could be less restricted than initially anticipated. However, the success of these new zoning policies will hinge on collaboration between government officials, the local community, and the tourism industry. As the situation unfolds, travellers will need to stay informed about any changes that could impact their accommodation choices on this beloved island destination.