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US: Maui County Council has advanced a proposed measure that would phase out thousands of short-term vacation rentals across the island, moving forward a contentious plan designed to boost the supply of long-term housing.
Councillors voted 5-3 to approve the amended version of Bill 9 on first reading, setting up a final vote for 15 December. The bill, introduced by Mayor Richard Bissen in May 2024, was drafted in response to the August 2023 wildfires, which displaced more than 12,000 residents and intensified Maui’s chronic housing shortage.
If passed, Bill 9 would remove longstanding exemptions that allow roughly 7,000 units in apartment-zoned areas to operate as short-term accommodation. Supporters argue the measure is necessary to reclaim homes for local families and fire survivors, while opponents warn of economic disruption for workers and businesses dependent on visitor spending.
Councillor Keani Rawlins-Fernandez, who represents Molokaʻi, said the legislation is an opportunity to “reclaim residential units for local families being priced off the island”. Council chair Alice Lee opposed the bill, calling it “one of the worst bills I’ve ever seen”, and raised concerns about reduced tax revenues, job losses and the wider impact on the county’s tourism-driven economy.
Public testimony reflected the divide. Property owners and operators argued the measure would harm housekeepers, maintenance workers and small businesses. Community advocates said a structural shift is needed to reduce the island’s dependence on tourism and rebalance the economy.
A study from the University of Hawaiʻi Economic Research Organization, frequently cited during hearings, noted that removing nearly half of Maui’s vacation rentals could weaken tourism income but may also lower housing costs and improve affordability for residents.
The council is also set to consider a separate measure on 19 December to establish two new hotel zoning districts. Under that proposal, many of the 7,000 affected units could be reclassified into hotel zones and continue operating as short-term rentals.
Councillor Shane Sinenci said he would support Bill 9 alongside the companion legislation, noting that, if both pass, only around 13 per cent of Maui’s short-term rental stock would ultimately be affected.
Councillor Nohelani Uʻu-Hodgins emphasised that while the bill may help ease pressure, “I don’t think this is going to be the panacea for a housing crisis”.
Highlights:
-Maui County Council votes 5–3 to advance Bill 9, which would phase out exemptions for around 7,000 apartment-zoned STR units
– Final vote scheduled for 15 December
– Bill introduced following the 2023 wildfires to return housing stock to local residents
– Opponents warn of economic impact; supporters say legislation will make homes available for displaced families
– Companion legislation could allow many affected units to continue operating under new hotel zoning districts
