The Maui Real Estate Blog

Maui County’s Vacation Rental Phase-Out Hits Road Block

access_timeFebruary 25, 2025personAnthony Sayles, REALTOR SalespersonhomeBlog Home

Maui County’s plan to commission a $300K independent study on the economic impacts of phasing out certain short-term vacation rental condos has hit a dead end. According to a recent article on Maui Now, the only bidder for the project refused to accept the county’s conditions and requested deadline extensions, leading the County Council to scrap the idea of an independent study altogether. Instead, officials will rely on in-house legislative analysts and an upcoming study from the University of Hawai’i Economic Research Organization (UHERO) to assess the potential effects.

Brief history of phase-out effort

Mayor Richard Bissen’s proposal, first introduced in May 2024, seeks to eliminate around 7,000 short-term rentals found within apartment-zoned areas (commonly called Minatoya condos), aiming to ease Maui’s housing crisis by encouraging property owners to transition their units into long-term rentals for residents. If passed, the legislation could significantly cut the county’s visitor accommodations, reshaping Maui’s tourism industry while potentially freeing up more housing for locals.

Deadline for County action is looming

With a June 18th deadline to act on the bill, the Council faces a high-stakes decision. While supporters of the phase-out bill suggest that reducing short-term rentals will alleviate housing shortages, critics worry about major economic fallout, including the loss of millions in annual tax revenue. A previous study estimated potential revenue losses ranging from $53.3 million to $91.8 million per year.

As the debate continues, balancing economic stability with the urgent need for local housing remains a challenge. With no independent study moving forward, the Council must weigh its options carefully, considering input from homeowners, businesses, and residents alike. The final decision will have lasting implications for Maui’s future—both for its people and its economy. You can read the full Maui Now article here.