Maui panel passes bill to curb short-term rentals after Lahaina wildfire

Hawaii: A Maui County Council committee passed a bill this week to phase out thousands of short-term vacation rentals in response to housing shortages following last year’s Lahaina wildfire.

Bill 9, which advanced in a 6-3 vote on Thursday, will eliminate more than 7,000 short-term rental units across the island by 2028 in West Maui and 2030 in other areas. Officials said the legislation aimed to return properties to the long-term housing market and prioritise local residents displaced by the fire.

Council members backing the measure argued that tourism-driven demand had worsened Maui’s housing crisis, while opponents warned the move could harm the island’s economy and affect jobs in the hospitality sector.

The proposal has drawn criticism from property owners and operators, some of whom claim it amounts to a government “taking” of vested rights. Others said the bill fails to consider the wider impact on local businesses dependent on visitor spending.

The vote came nearly a year after the wildfire destroyed much of Lahaina and left thousands without permanent housing. Maui Mayor Richard Bissen is expected to sign the measure into law in the coming weeks.

The legislation follows a series of steps by Hawaiian authorities to balance tourism and sustainability, including the introduction of a “Green Fee” earlier this year to fund climate change resilience.

Highlights:

• Maui County Council voted 6-3 to advance Bill 9 curbing short-term rentals

• Thousands of STRs to be eliminated by 2028 in West Maui and 2030 elsewhere

• Move follows Lahaina wildfire and aims to return units to the long-term housing market

• Critics warn of economic fallout for tourism and hospitality jobs

• Linked to Hawaii’s earlier Green Fee policy to fund climate resilience