Maui Council Plans Short-Term Rental Phase-Out Amid Housing Crisis

Maui Mayor Richard Bissen's plan to phase out short-term vacation rentals in favor of long-term housing is gaining traction, with the Maui County Council's Housing and Land Use Committee expected to discuss the proposal in mid-May or early June. A recent study from the University of Hawaii Economic Research Organization indicates that the proposal could increase long-term housing availability by approximately 6,127 units, alleviating the severe housing crisis worsened by the August 2023 wildfires. However, the report also warns of significant economic repercussions, including the potential loss of about 1,900 jobs and a nearly $900 million decrease in annual visitor spending. Mayor Bissen acknowledged the mixed outcomes, emphasizing that economic models fail to capture the personal struggles of residents facing housing challenges. Council Chair Alice Lee expressed concerns about the legal implications of the proposal and its potential impact on the local economy, suggesting that many short-term rental owners might choose to retain their properties. The council's eventual decision will hinge on further assessments of the economic and legal aspects of this significant policy shift.