Maui seeks to limit short-term rentals: What you need to know

Maui ordinance seeks to limit short-term rentals

By Mark Reif Updated July 30, 2024

Beach and cloud Maui Hawaii — John Bell via Unsplash

Maui is one of the natural wonders of the world, with stunning landscapes and aquamarine waters. You can snorkel at Molokini and watch the ocean’s hidden underwater magic. Take a boat tour and view humpback whales breach the surface. Or, when the conditions are right, watch the world’s finest surfers drop in at Pe’ahi (Jaws) and tame the ocean’s power.

Understandably, Maui is a popular vacation spot. That’s led to numerous investment properties and short-term rentals taking up housing stock. The problem is that it leads to fewer long-term rentals, higher rents, and fewer places for locals to live. Last year’s Lahaina wildfires only exacerbated the issue.

To help, the Maui Planning Commission is taking steps to limit short-term rentals with an ordinance that replenishes long-term rental stock. Here’s what you need to know.

Maui’s rental ordinance gives locals somewhere to live

Forest in Maui Hawai — John Bell via Unsplash

Recently, the Maui Planning Commission unanimously voted in favor of a proposal that would significantly limit short-term rentals across the island. The proposed ordinance would phase out more than 7,000 short-term rentals by creating “apartment districts,” mainly located in South and West Maui. Maui has roughly 13,600 short-term rentals, and around 45% fall within the “apartment district.” The aim is to provide locals with long-term, more affordable housing options.

The Mayor of Maui, Richard Bissen, introduced the ordinance which looks to address a housing crisis heightened by last year’s Lahaina wildfires. The fires displaced more than 12,000 people and consumed over 5,000 homes.

At last month’s planning commission meeting, housing consultant Matt Jachowski cited data showing 53% of Maui families are “rent burdened” and 28% are “severely rent burdened.” Further, statistics from the Council for Native Hawaiian Advancement showed Maui’s average rents increased 40% in the past year, with a one-bedroom apartment costing $2,500 monthly, as opposed to $1,500 in 2023.

If the Maui County Council approves the measure, it goes into effect July 1, 2025, for West Maui short-term rentals and January 1, 2026, for the remaining districts. What does that mean for travelers? When planning your next trip, consider a hotel stay instead.

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Mark Reif is a writer from Stowe, Vermont. During the winter, he works as a snowboard coach and rides more than 100 days. The…

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