Maui Lawmakers Pass Bill Curtailing Vacation Rentals to Boost Housing Supply

Lawmakers on Maui have passed a landmark bill aimed at reducing a significant portion of the island’s vacation rentals in order to address a severe housing shortage, intensified by the 2023 wildfire that devastated Lahaina. The legislation, passed by a 6-3 vote in the county council’s housing committee, closes a loophole allowing short-term rental of condos in apartment zones and mandates conversion to longer-term rentals, with compliance deadlines set for 2028 in West Maui and 2030 for the rest of the county. Supporters, including Mayor Richard Bissen, argue that the measure is a crucial step in prioritizing housing for local residents and children, as vacation rentals currently occupy about 21% of Maui’s housing stock. Economists estimate the move could add over 6,100 units to long-term housing, a 13% increase in supply. The action aligns Maui with other global tourist destinations like Spain, Barcelona, and Venice, which have recently cracked down on short-term rentals and overtourism. Critics remain concerned about the affordability of converted units for local residents and the age of many affected buildings.