Vacation Rental Restrictions Approved by Maui Panel...
Maui Takes Steps to Alleviate Housing Shortage by Reducing Vacation Rentals
In an effort to address a housing shortage exacerbated by the 2023 Lahaina wildfire, Maui County is moving forward with legislation to significantly reduce vacation rentals in apartment-zoned areas. This legislation, known as Bill 9, aims to phase out thousands of short-term vacation rentals operating in residential apartment zones, particularly in West and South Maui, including Lahaina.
The Maui County Council’s Housing and Land Use Committee voted 6-3 on July 24-25, 2025, to pass Bill 9, closing a loophole that allowed condo owners in apartment zones to rent units short-term rather than for at least 180 days. The bill has strong political backing, with all nine council members sitting on the housing panel and the mayor, Richard Bissen, supporting it and expected to sign it.
The legislation would take effect gradually, starting in the West Maui district (including Lahaina) in 2028, with the rest of the county complying by 2030. It is important to note that Bill 9 does not target vacation rentals in hotel or resort zones, so not all visitor lodging is affected. However, it could reduce the availability of mid-range visitor lodging options significantly.
The debate surrounding Bill 9 has been heated and contentious, reflecting a fundamental conflict between preserving housing for residents and maintaining tourism revenue. There have been vocal concerns about possible negative effects on the local economy and tourism by reducing these rentals abruptly.
In summary, Maui is actively regulating vacation rentals in residential zones through Bill 9 to address the housing shortage compounded by the wildfire’s destruction. The bill has passed committee approval and is on track to become law, with implementation phased over the next several years to balance housing needs and tourism.
[1] Maui News, "Bill 9: Maui County Council votes to pass vacation rental legislation", July 26, 2025. [2] Pacific Business News, "Maui County moves to restrict vacation rentals in residential zones", July 26, 2025. [3] Honolulu Star-Advertiser, "Maui County Council passes controversial vacation rental bill", July 26, 2025. [4] KITV4, "Opinion: Maui vacation rental bill could hurt the economy", July 28, 2025.
Financial implications may arise as a result of Maui County's proposed vacation rental regulations, as investors in real-estate designated as apartment zones might see a reduction in potential rental income. The restrictive measures targeted at short-term vacation rentals could lead to adjustments in investing strategies for individuals interested in property in these zones.
