To solve a housing scarcity made worse by the blaze that destroyed most of Lahaina two years ago, lawmakers on Maui enacted legislation Thursday that will eliminate a significant portion of the Hawaiian island’s vacation rentals.
This is the most recent move by a major international tourist attraction to combat the influx of tourists into residential areas and the overabundance of tourism in those areas. More than 65,000 vacation postings on Airbnb were banned by Spain in May after the company was found to have broken regulations. Thousands of demonstrators demonstrated against the negative effects of overtourism last month in European cities including Barcelona and Venice, Italy.
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The bill, which would address a loophole that has let condo owners in apartment zones to rent their units for days or weeks at a time rather than a minimum of 180 days, was approved by the Maui County Council’s housing committee by a vote of 6-3. The West Maui district, which includes Lahaina, would be subject to the obligation starting in 2028. It would take until 2030 for the remainder of the county to comply.
Since all nine council members are on the housing panel, the committee’s decision is a good predictor of the final result, even if the council has not yet had a chance to vote on the bill. He proposed the law, which is anticipated to be signed by the mayor.
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In a statement, Maui Mayor Richard Bissen used the Hawaiian word for children to say, “Bill 9 is a critical first step in restoring our commitment to prioritize housing for local residents and securing a future where our keiki can live, grow, and thrive in the place they call home.”
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Currently, vacation rentals make up 21 percent of all housing in the roughly 165,000-person county.
Economists from the University of Hawaii estimated that the legislation would increase supply by 13%, adding 6,127 units to Maui’s long-term housing stock.
Given that many of the buildings they are located in are aging and that the condos have hefty mortgage, insurance, maintenance, and special assessment expenses, opponents questioned if the locals could afford the apartments.
According to Alicia Humiston, her condo won’t be impacted because it is located in a hotel zone. However, she foresaw that the move would negatively impact small business owners who assist in maintaining holiday rentals, such as housekeepers, plumbers, and electricians.
Humiston, the president of the Rentals by Owner Awareness Association, stated that it is not in the best interests of the community.
After protestors and wildfire survivors set up camp on a prominent tourist beach to demand change last year, Bissen put out the legislation.
Mayor says tourism will continue but must not hollow out our neighborhoods
Converting the vacation rentals would be equivalent to ten years’ worth of new home development, according to a University of Hawaii analysis, as the county only builds around 600 new housing units annually. According to the study, condo costs would decrease by 20–40%.
Additionally, the analysis forecasted a 15% decline in visitor expenditure and the elimination of 25% of Maui County’s lodging options. It predicted a 4% decline in the gross domestic product.
The mayor claimed that such economic analysis fell short of providing a complete picture, pointing out that cultural knowledge is lost when generations depart Maui and that families are split up when relatives are forced to leave due to high housing expenses.
The mayor informed the council that the bill was a component of a larger housing plan that would also include infrastructure investments, the construction of new homes, and the prohibition of unlawfully run holiday rentals. He claimed that due to limitations on sewer and water infrastructure, the amount of additional homes that could be constructed was limited.
The mayor stated that while tourism would remain on Maui, it must not deplete our neighborhoods.
Council members were informed by the mayor’s staff that the proposal would result in a decrease in visitor expenditure, with lodging accounting for the majority of the fall. They claimed that a large portion of this revenue already goes off-island because 94% of owners of holiday rentals in apartment zones don’t reside on Maui. They assessed that a $61 million drop in yearly tax revenue as a result of the proposal could be tolerated by the county budget.
