🎯 STRisker: Bulletin - Maui County, HI

Maui’s Big Rental Shakeup: Bill 9 on the Horizon

For condo owners across Maui, the future of short-term rentals feels like it’s hanging by a thread. Bill 9, a proposal now awaiting its chance before the full County Council, could mark one of the most dramatic changes to Hawaii’s vacation rental market in years.

The bill, introduced by Mayor Richard Bissen back in May 2024, would phase out over 7,000 short-term rentals in apartment districts—a move that has property owners bracing for major change. Condo associations at complexes like Hale Kamaole and Wailea Ekahi are already consulting lawyers, preparing for the possibility of a lengthy legal battle if the measure becomes law.

And that legal fight looks almost certain. Opponents argue that Bill 9 strips away long-standing property rights, particularly for condos included in Maui’s historic “Minatoya List,” which ranted them protection to operate as short-term rentals since the early 1990s. Attorneys are lining up to say the bill is unconstitutional, citing both Hawaii and U.S. law. On the flip side, Maui County’s lawyers insist the bill is solid, constitutional, and crafted to survive any court challenges.

Why the push now? The housing crisis, plain and simple. After the 2023 wildfires displaced thousands of residents, pressure mounted to reclaim housing stock from the vacation rental market. Supporters of Bill 9 say converting rentals to long-term use could add more than 6,000 units back into the local housing pool, providing relief for families who can’t find homes.

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Still, the trade-offs are steep. The University of Hawai‘i’s economists warn the shift could slash tax revenues by $75 million a year, while owners face losing a major source of income. Many in the tourism industry worry about ripple effects on jobs and visitor demand.

The bill also builds in transition time: West Maui owners would have until the end of 2028, while the rest of the island would phase out by 2030. Supporters say that adjustment period makes the proposal fairer—and more likely to hold up in court. Critics counter that it doesn’t solve the deeper tension between Maui’s dependence on tourism and its desperate housing needs.

If passed, Bill 9 will put Maui at the center of a national conversation. Cities like New York, San Francisco, and Barcelona have all tried to rein in short-term rentals, often triggering years of lawsuits. Maui may be next in line.

For now, one thing’s clear: with thousands of units, billions in property value, and the island’s housing future at stake, all eyes are on the County Council—and the courts that may soon follow.

Short Term Rentals | Maui County, HI - Official Website

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