Over the past two years, Maui has witnessed one of the most significant policy shifts in its real estate history. Whether you agree with the direction or not, one fact is difficult to ignore: the market responded long before any ordinance officially became law.
The moment county leaders announced their intention to eliminate long-established vacation rental rights for thousands of condominium owners, uncertainty spread across the marketplace. Buyers hesitated. Sellers adjusted expectations. Property values in many affected communities declined sharply, and confidence across Maui’s condo market weakened.
The fallout extended well beyond real estate.
Owners who had legally operated vacation rentals for decades suddenly found themselves questioning the future of their investments. Local businesses tied to the visitor industry from housekeepers and maintenance crews to property managers, contractors and hospitality workers were left wondering what the long-term consequences might be.
Supporters of the legislation celebrated it as a step toward solving Maui’s housing shortage. Critics argued it dismantled legally established property rights without offering a practical roadmap for creating affordable homes.
That debate continues today.
One of the biggest questions remains the same: if thousands of vacation rentals disappear, where is the actual affordable housing being created?
Many of these condominiums are located in oceanfront or resort communities where purchase prices and even long-term rents will remain well beyond the reach of many Maui residents. Reclassifying these units doesn’t automatically make them affordable.
That distinction matters.
To understand why Bill 88 has become so important, it’s necessary to look back at the events that set everything in motion.
The conversation changed after the Lahaina fire
The tragic wildfire that devastated Lahaina on August 8, 2023 reshaped nearly every housing conversation on Maui.
The loss of life was heartbreaking. Thousands of residents were suddenly displaced, and an already strained housing market entered crisis mode almost overnight.
In the months that followed, state and county leaders searched for immediate ways to increase available housing.
Governor Josh Green initially explored temporarily restricting vacation rentals in West Maui to create more long-term housing for displaced families. As FEMA housing expanded and more private owners stepped forward, that proposal evolved. But the political momentum surrounding vacation rentals had already begun.
What had long been discussed by housing advocates suddenly became a realistic legislative objective.
In the spring of 2024, the Hawaii Legislature approved SB2919, granting counties broader authority to regulate short-term rentals including the ability to phase them out if local governments chose to do so.
Governor Green signed the measure into law on May 3, 2024.
Maui County didn’t wait.
The press conference that changed the market
On May 2, 2024, the day before SB2919 officially became law, Mayor Richard Bissen announced his intention to introduce legislation that would eliminate longstanding transient vacation rental rights within Maui’s Apartment District.
Standing alongside community advocates and county officials, he outlined a proposal designed to return many apartment-zoned properties to long-term residential use by removing decades-old exemptions that had allowed qualifying condominiums to legally operate as vacation rentals.
The proposal centered on properties commonly associated with the Minatoya List.
For decades, these condominiums had operated legally under county guidance. Owners paid higher real property tax rates because of their vacation rental status. They collected and remitted General Excise Tax and Transient Accommodations Tax, complied with county regulations and purchased their properties with every indication that those legally recognized uses would continue.
The mayor’s announcement fundamentally changed that expectation.
Whether legislation would eventually pass almost became secondary.
The marketplace immediately began evaluating the possibility that thousands of legally established vacation rentals could eventually lose the very use that gave many of those properties their value.
Real estate markets dislike uncertainty.
When future income becomes questionable, buyers become cautious. Financing becomes more complicated. Sellers lose negotiating leverage.
That process began almost immediately.
The proposal had not yet gone through months of public testimony.
No ordinance had been adopted.
No implementation dates had been finalized.
Yet buyers, sellers, lenders and investors had already begun adjusting to a dramatically different outlook.
In many ways, the economic reaction started before the legislative process had truly begun.
That distinction is critical.
Because the story of Bill 9 isn’t simply about when it became law.
It’s about when the market decided to believe it would.
The market responded long before Bill 9 became law
One of the biggest misconceptions surrounding Bill 9 is that the economic impact began when the ordinance was signed.
It didn’t.
The damage, at least from the market’s perspective, started the moment buyers believed the rules were about to change.
Real estate is forward-looking.
Buyers don’t simply evaluate today’s conditions, they price in tomorrow’s risk. Once uncertainty surrounded the future of thousands of legally operating vacation rentals, many prospective purchasers stepped aside. Others lowered their offers to account for the possibility that future rental income could disappear altogether.
The result wasn’t subtle.
By the end of 2025, Maui’s condominium market had experienced one of its sharpest slowdowns in well over a decade. Median condo prices had fallen significantly from the previous year, while transaction volume sank to levels not witnessed since the depths of the Great Recession. Even UHERO, the economic analysis commissioned by Maui County projected that affected properties could ultimately experience value reductions ranging from roughly 20% to 40%, depending on how the legislation unfolded.
Think about that for a moment.
The county’s own commissioned research projected substantial losses in private property values.
And all of this occurred before a single condominium had actually lost its vacation rental rights.
The implementation dates remain years away.
West Maui isn’t scheduled until January 2029.
The remainder of Maui County follows in 2031.
Yet the marketplace had already adjusted.
That’s because investors, lenders and homeowners don’t wait for the final chapter—they react when they believe the ending has already been written.
Ripple effects extend far beyond property owners
Focusing only on home values tells only part of the story. Vacation rentals support an extensive network of local businesses across Maui.
- Housekeepers
- Maintenance technicians
- Landscapers
- Property managers
- Electricians
- Plumbers
- Photographers
- Laundry companies
- Pool service providers
- Marketing firms
- Reservation specialists
- Restaurants
- Activity companies
- Transportation providers
Thousands of local residents earn their living—directly or indirectly—from visitor accommodations. Throughout months of council testimony, many business owners repeatedly asked the same questions.
How will these jobs be replaced?
What revenue fills the gap if visitor spending declines?
What happens to county tax collections?
Where is the economic transition plan?
Those questions rarely received definitive answers. For many owners and small business operators, the uncertainty became almost as damaging as the legislation itself.
Does Bill 9 actually produce affordable housing?
Supporters consistently described Bill 9 as a major housing initiative.
The premise sounds straightforward.
Move thousands of vacation rentals into the long-term housing market and increase inventory without building new homes.
It’s an appealing message.
But whether it produces meaningful affordability is another question entirely.
Most of the affected condominiums are located in Maui’s most desirable resort communities South Maui and West Maui.
These aren’t entry level housing developments.
They’re oceanfront and resort-adjacent properties that frequently sell for well over one million dollars.
Converting a luxury condominium from a vacation rental into a long-term rental doesn’t automatically transform it into workforce housing.
It simply changes who occupies it.
Even the county’s own economic analysis acknowledged that many of these properties would likely remain market-rate assets, whether sold to new owners or rented on a long-term basis.
Market-rate.
Not deed-restricted affordable housing.
Not subsidized workforce housing.
Not guaranteed homes for displaced families.
Those are important distinctions.
Housing policy requires more than restricting existing property rights
If the ultimate objective is creating housing that local residents can realistically afford, many believe additional pieces must accompany any restriction on vacation rentals.
That could include expanding deed-restricted housing developments.
Offering incentives that encourage below-market rents.
Partnering with private developers to build workforce communities.
Identifying county-owned land suitable for new residential projects.
Creating permanent affordability requirements tied to public investment.
Those types of initiatives directly increase housing supply.
Bill 9, by itself, largely changes how existing properties may be used.
Those are two very different approaches.
Supporters argue reducing visitor accommodations naturally shifts more housing toward residents.
Critics counter that without substantial new construction or affordability requirements, many of these units simply remain expensive homes occupied by different people.
That debate remains unresolved.
What isn’t debated is that uncertainty surrounding the legislation dramatically reshaped Maui’s condominium market well before implementation dates arrive.
The marketplace rendered its verdict early.
Whether history ultimately agrees is a conversation that will likely continue for years.
The property rights debate
Beyond the housing discussion sits another issue that has generated just as much attention: private property rights.
For many owners, this was never simply about vacation rentals.
It was about purchasing a property under one set of legally recognized rules, paying taxes based on those rules for decades, and then being told those rights could eventually disappear.
That’s why Bill 9 immediately raised constitutional questions.
Legal scholars, land use attorneys and property rights advocates began discussing whether eliminating a long-established use could constitute a regulatory taking under the Fifth Amendment, potentially requiring compensation if government action significantly diminishes private property rights.
Whether the courts ultimately agree remains to be seen.
But the legal uncertainty was never hypothetical.
It became reality almost immediately.
Mayor Richard Bissen, a former judge, openly acknowledged that legal challenges were likely to follow. Rather than avoiding litigation, the county moved forward knowing lawsuits were a strong possibility.
Those lawsuits have now begun.
Regardless of how they are ultimately resolved, they will likely require years of legal proceedings, substantial public resources and significant taxpayer expense before the final questions are answered.
Was there a different path?
Few people would argue Maui doesn’t need more housing.
The real disagreement centers on how to get there.
Many critics of Bill 9 believe the county focused on restricting existing property rights before fully developing a comprehensive housing strategy.
Imagine if the same political energy had been directed toward accelerating new construction.
Building deed-restricted affordable communities.
Expanding workforce housing.
Creating meaningful incentives for below-market rentals.
Partnering with private developers willing to increase inventory.
Those approaches require time.
They require funding.
They require difficult budget decisions.
But they also create additional housing instead of simply redistributing existing units.
That’s an important distinction.
Bill 9 primarily changes how existing condominiums may be used.
It doesn’t build a single new home.
Supporters argue reallocating existing inventory is faster than constructing new neighborhoods.
Critics respond that changing occupancy alone doesn’t automatically create affordability.
Those competing viewpoints continue to define the public conversation.
Nineteen months of debate finally came to a vote
The legislative process surrounding Bill 9 was anything but brief.
Over approximately nineteen months, Maui County held public hearings, received testimony from residents, property owners, economists, business leaders and housing advocates, reviewed commissioned economic studies and convened the Temporary Investigative Group to evaluate potential modifications.
The process drew hundreds of voices from every side of the issue.
Some viewed the proposal as a necessary response to Maui’s housing shortage.
Others warned it could undermine investor confidence, reduce tax revenue, weaken local businesses and expose the county to years of litigation.
Both perspectives remained front and center throughout the debate.
Then, on December 15, 2025, the Maui County Council cast its final vote.
Bill 9 passed by a 5-3 margin.
Mayor Bissen signed the ordinance the very same day.
Not everyone on the Council supported the measure.
Several members expressed concern that the county was moving forward without clearly addressing the broader economic consequences.
Questions remained about lost visitor spending.
Future tax collections.
Employment tied to the vacation rental industry.
And perhaps most importantly…
What exactly would replace what was being lost?
Those concerns became even more notable because one of the Council Members voting against Bill 9—Tom Cook—would later introduce the legislation that attempted to address many of the uncertainties left behind.
That legislation became known as Bill 88.
From Bill 9 to Bill 88
Once Bill 9 became law, thousands of condominium owners found themselves asking the same question.
Now what?
Many had operated legally for decades.
Many had invested retirement savings into Maui real estate.
Many simply wanted clarity about whether their properties would continue qualifying for transient vacation rental use in the years ahead.
Bill 88 emerged from that uncertainty.
Rather than reopening the entire debate surrounding Bill 9, it sought to establish a pathway allowing qualifying apartment-zoned properties to continue operating legally under newly created hotel zoning classifications.
For many owners, it represented something they had been seeking since the original announcement.
Whether Bill 88 ultimately solves every remaining issue is another conversation.
But for thousands of owners, it became one of the most important pieces of legislation to emerge after Bill 9 became law.
Bill 88: An attempt to restore certainty
Once Bill 9 became law, one issue quickly moved to the forefront.
Thousands of condominium owners had no idea whether their properties would eventually lose vacation rental eligibility or whether there would be a legal path forward.
That uncertainty wasn’t healthy for owners.
It wasn’t healthy for buyers.
And it certainly wasn’t healthy for Maui’s real estate market.
Bill 88 was introduced to provide answers.
Rather than overturning Bill 9, the legislation creates a process that allows qualifying apartment-zoned properties to continue operating as transient vacation rentals under newly established hotel zoning classifications known as H-3 and H-4.
For many owners, this wasn’t viewed as an expansion of vacation rental rights.
It was viewed as preserving rights they believed had existed for decades.
In many respects, Bill 88 functions as a bridge between the old regulatory framework and the new one established under Bill 9.
For qualifying owners, that bridge could make all the difference.
Not every property automatically qualifies
One of the biggest misconceptions is that Bill 88 protects every condominium previously operating as a vacation rental.
It doesn’t.
Eligibility is determined at two different levels.
First…
The condominium complex itself must qualify.
Second…
The individual unit must also satisfy the required documentation standards.
Meeting only one requirement isn’t enough.
Both must be satisfied before protections apply.
That’s why owners shouldn’t assume they’re covered simply because neighboring units have historically operated as vacation rentals.
Each property’s documentation matters.
The four standards every qualifying property must meet
Bill 88 establishes four primary benchmarks.
Missing even one can prevent a property from qualifying.
#1 – Building Age
Only properties that received the appropriate building approvals on or before April 20, 1989 are eligible.
Buildings completed after that date don’t qualify under this framework.
For many owners, this becomes the very first screening test.
#2 – Established vacation rental history
Owners must demonstrate that transient vacation rental use existed prior to September 24, 2020.
That history isn’t established through verbal claims.
It requires documentation.
Real property tax classifications.
General Excise Tax filings.
Transient Accommodations Tax records.
Other official government records.
The stronger the paper trail, the stronger the position.
3 – No expansion of vacation rental inventory
Bill 88 wasn’t designed to create additional vacation rentals.
Instead, it preserves qualifying units that were already operating.
The number of eligible units is effectively frozen based upon documented activity as of January 7, 2022.
No additional inventory can simply be added later.
That limitation was intentional.
County leaders wanted to prevent future expansion while still providing a pathway for historically established operations.
4 – Current tax compliance
Owners must also remain in good standing.
Required tax registrations.
Applicable filings.
Outstanding obligations.
These administrative details matter.
Failure to remain compliant can jeopardize eligibility regardless of a property’s operating history.
Documentation has never been more important
If Bill 9 created uncertainty…
Bill 88 places a premium on documentation.
Owners should be gathering every available record that supports their property’s historic operation.
Tax filings.
Building permits.
County correspondence.
Licenses.
Historical records.
Anything that helps establish continuous legal use.
Waiting until questions arise may be too late.
Having organized documentation today can eliminate significant challenges tomorrow.
Why Bill 88 matters
For many owners, Bill 88 represents far more than another zoning ordinance.
It offers predictability during one of the most uncertain periods Maui’s vacation rental market has ever experienced.
Does it solve every issue?
No.
Does it eliminate future litigation?
Probably not.
Does it answer every remaining question?
Not yet.
But for thousands of condominium owners who have spent the past two years wondering whether decades of legally recognized property rights would simply disappear, Bill 88 provides something the market has been searching for since May of 2024…
A clearer path forward.
And after years of uncertainty, clarity carries real value.
Exhibit 1 isn’t the final word
One of the most talked-about portions of Bill 88 is Exhibit 1.
The exhibit identifies approximately 130 condominium properties—representing more than 7,000 individual units—that the Department of Planning believes may qualify for the new H-3 or H-4 hotel zoning designation.
Notice one important word…
“May.”
Being included on Exhibit 1 doesn’t automatically guarantee permanent vacation rental rights.
Likewise…
Not appearing on the list doesn’t necessarily mean a property is disqualified.
The exhibit is intended to be a starting point—not the final determination.
The ordinance itself makes that clear by acknowledging the list may contain errors or omissions and does not, by itself, create a legal entitlement.
That distinction could become incredibly important over the coming years.
The challenge for owners left off the list
Perhaps the biggest concern surrounding Bill 88 involves owners who genuinely believe their property qualifies but don’t see their complex included on Exhibit 1.
Earlier versions of the legislation provided a more defined process for owners to notify the Department of Planning, submit supporting documentation and seek confirmation before the ordinance became effective.
That language ultimately changed.
The final amendments removed much of that administrative pathway.
While the intent may have been to apply the standards consistently across every property, the practical result created additional uncertainty for some owners.
Today, those owners are left asking…
What’s my next step?
Unfortunately, Bill 88 doesn’t provide a simple answer.
Documentation may become your strongest asset
For owners who believe their property qualifies but isn’t identified on Exhibit 1, documentation becomes everything.
- Historic tax records
- GET filings
- TAT filings
- County correspondence
- Planning documents
- Building permits
- Ownership history
Every official record that helps establish lawful vacation rental use may become critically important if eligibility is ever questioned.
The stronger your documentation…
The stronger your position.
Owners should avoid assuming someone else is verifying these records on their behalf.
Taking a proactive approach today could prevent much larger problems tomorrow.
Professional guidance may be worth the investment
Every property has its own history.
Every condominium complex has its own circumstances.
For that reason, owners facing uncertainty should strongly consider speaking with professionals familiar with Maui land use regulations.
That may include experienced land use attorneys, planning consultants, tax professionals, or communicating directly with the Department of Planning when appropriate.
Waiting for complete certainty may not be the best strategy.
Gathering information now allows owners to make informed decisions while the legal landscape continues to evolve.
Why this matters beyond individual owners
Bill 88 isn’t simply about one condominium…
Or one complex…
Or even one owner.
It reflects a much larger question facing Maui.
How do we address a housing shortage while also respecting long-established property rights?
How do we increase housing opportunities without creating years of uncertainty throughout one of the island’s largest economic sectors?
Can both objectives be accomplished at the same time?
Those questions don’t have easy answers.
But one thing is becoming increasingly clear.
Whatever the ultimate outcome…
The conversation is no longer just about vacation rentals.
It’s about predictability.
Property rights.
Housing policy.
Economic stability.
And the future direction of Maui itself.
The courts, elected officials and the community will continue shaping those answers in the years ahead.
For now, property owners should focus on the one thing they can control…
Knowing exactly where their property stands.
Looking at the bigger picture
Regardless of where someone stands on Bill 9, one reality is difficult to dispute.
This has become one of the most consequential housing and property rights debates in Maui County’s history.
The conversation has never been solely about vacation rentals.
It’s about balancing several competing priorities that don’t always align.
Providing more housing for local residents.
Protecting legally established property rights.
Maintaining confidence in Maui’s investment climate.
Preserving jobs supported by the visitor industry.
Generating tax revenue that funds essential county services.
Those objectives can sometimes work together.
Other times they collide.
That’s exactly what Maui has experienced over the past two years.
Supporters believe Bill 9 represents a necessary step toward addressing an ongoing housing shortage.
Critics argue the county placed too much emphasis on restricting existing property rights without first establishing a comprehensive strategy to replace the housing, jobs and tax revenue that could be affected.
Time—and the courts—will ultimately determine how successful that approach proves to be.
Bill 88 doesn’t end the conversation
For many owners, Bill 88 offers meaningful relief.
It creates a process that allows many historically operated transient vacation rentals to continue under newly established hotel zoning classifications.
For qualifying properties, that’s significant.
But Bill 88 shouldn’t be viewed as the finish line.
Lawsuits remain active.
Implementation dates are still years away.
Questions surrounding eligibility, documentation and future interpretation will continue to evolve.
In many respects…
Bill 88 represents the beginning of the next chapter—not the conclusion of the previous one.
Owners should continue monitoring legislative updates, court decisions and guidance from Maui County’s Department of Planning.
This remains a dynamic situation.
What property owners should be doing today
If your condominium appears on Exhibit 1…
Don’t assume your work is finished.
Organize your records.
Verify your property’s status.
Maintain copies of tax filings, permits and supporting documentation.
Good recordkeeping today could save significant time and expense later.
If your property isn’t included but you believe it should qualify…
Don’t simply wait and hope the issue resolves itself.
Gather your documentation.
Speak with professionals familiar with Maui land use law.
Communicate with the Department of Planning when appropriate.
Taking action now may provide more options than waiting until implementation deadlines approach.
Buyers and investors need to perform extra due diligence
For anyone considering purchasing Maui real estate, zoning has never been more important.
Don’t rely on assumptions.
Don’t rely on historical use.
Verify everything.
Understand exactly how a property is zoned.
Confirm whether vacation rental use is legally permitted.
Review the applicable regulations before making investment decisions based on projected rental income.
Doing your homework today could prevent expensive surprises tomorrow.
Questions every maui resident should continue asking
Healthy public policy welcomes thoughtful questions.
As this process continues, residents deserve clear answers.
How many affordable homes will ultimately be created?
How will success actually be measured?
What happens to the jobs connected to Maui’s visitor economy?
How will lost tax revenue, if any, be replaced?
Will additional housing be built—or will existing homes simply change occupants?
Those aren’t political questions.
They’re practical ones.
The community deserves transparent answers regardless of where someone stands on the issue.
Final thoughts
Housing affordability is one of Maui’s greatest challenges.
There is broad agreement on that point.
Where opinions begin to diverge is determining the best path forward.
The decisions made over the past two years have already reshaped Maui’s real estate market.
Some believe those changes were necessary.
Others believe the economic costs have been far greater than anticipated.
History will ultimately decide which perspective proves more accurate.
For now, one thing remains certain.
Knowledge is your greatest asset.
Whether you’re a homeowner…
A buyer…
An investor…
Or simply someone who cares deeply about Maui’s future…
Stay informed.
Understand how these laws affect you.
Ask questions.
Read the legislation.
And make decisions based on facts rather than assumptions.
The conversation surrounding Bill 9 and Bill 88 is far from over.
In many ways…
It’s only beginning.
Contact a Maui Real Estate Specialist
Yes we will always be your trusted advisor in the real estate market. But it’s so much more than that! A REALTOR should be that professional who recognizes their role in supporting your wealth building and preservation. Helping to magnify wealth is one of the core values of The Sayles Team; a set of guiding principles for how we serve our clients at the highest level.
As experts in the field, we are constantly learning. This is all about providing guidance, making the wisest choices for the future. If someone you care about needs such guidance or recommendations, please share our contact information. We would be honored to help them! As ever, we are here to provide resources. Reach out today for your up to date, in-depth market analysis or an evaluation of your property’s value.
Aloha,
Anthony Sayles R(S)
808-280-6532
Disclaimer: This article is intended for general informational purposes only and should not be interpreted as legal, tax or investment advice. Every property presents its own unique circumstances. Owners should consult qualified Hawaii land use counsel, tax professionals and the Maui County Department of Planning regarding questions specific to their property.
Editor’s Note: Since the original draft of this article was prepared, Bill 88 has continued moving through the legislative process. Readers should verify the most current status of the legislation and any subsequent court rulings or county guidance, as this remains an evolving area of Maui land use law.