Maui has the highest activity for listed short-term rentals in the state. The industry brings jobs and tax revenue — but also contributes to the housing crisis.
“Growing up, I helped my mother cleaning these short-term rentals, and still to this day, it's one of her sources of incomes,” said Maui’s Evalyn Del Valle.
“I vividly recall admiring these beautiful homes as I cleaned, and I remember thinking I'm going to clean this bedroom, scrub these toilets, clean this kitchen, wash these dishes, and I'm going to pretend that this will one day be my home — knowing deep down, this will never be one of my homes until something changes," she continued.
Del Valle testified this week in support of that change. Maui Mayor Richard Bissen has proposed an ordinance that would phase out about half of Maui’s nearly 14,000 vacation rental units in apartment-zoned districts built before 1989, also known as the Minatoya List.
“This is something that can change that, and it will give Maui residents, born and raised hard-working people, the chance to live and afford these beautiful homes,” continued Del Valle.
She was one of hundreds who signed up to testify at a Maui Planning Commission meeting this week. It was the first step in a process, Bissen said, would create more housing for Maui residents.
University of Hawaiʻi’s Economic Research Organization backs that claim.
“This morning, UHERO released an analysis that shows that this proposal 'would increase Maui’s long-term residential housing stock by 13%, representing a dramatic increase in housing supply,'” Bissen said on Tuesday.
The UHERO study also estimates that 4,000 Maui residents have moved from the island since the fire.
That’s largely due to the lack of available and affordable housing.
“Fifty-three percent of our families in 2023 were rent burdened,” said Matt Jachowski, a Native Hawaiian Maui resident who has been compiling comprehensive housing data since the August fire, in a presentation at the Maui Planning Commission meeting.
“That means they spent 30% of their income or more every month on housing. 28% of our families are severely rent burdened, which means they spend more than half of their income every month on rent.”
Hawaiʻi’s rent is the most expensive in the country, and Maui’s is now the priciest in the state. Median rent on the island has gone up 40% this year over last year.
Jachowski said in West Maui, nearly 50% of housing is short-term rentals, while only 34% is residential units.
But there’s no simple solution.
Leslie Brown has managed Luana Kai condos for 38 years. She opposed the legislation, saying it would devastate the families she employs.
“I have devoted more than half of my life to my business, taking care of tourists. My business has five employees, including me. Two are single moms who've been with me for over five years. My cleaning company is a family of mom, dad and daughter, all eight of us would lose our jobs,” she said as her voice broke with emotion.
Under the proposed legislation, vacation rental owners of the 7,000 affected units could either sell, convert to long-term rentals, or leave them vacant.
Some owners, like Jason Gobey, said they have no plans to convert to a long-term rental.
“I own a one-bedroom unit of Luana Kai in Kīhei, 643 square feet with minimal storage, one parking space,” he said. “Really not suitable for long-term use, and I would have to rent for over $4,000 per month just to cover the costs. We are unable to become long-term landlords, and in our case, if the ordinance is passed, our unit will not be converted into an affordable, long-term rental. Instead, it will sit vacant around eight months a year.”
Others, like Andrew Church, said all his family’s income comes from management and rentals of Minatoya List properties.
“The passage of the county’s proposed legislation to ban short-term rentals will be financially catastrophic and a final blow for my family,” he said. “This proposed ban will bankrupt my family. Since May 3, when the mayor gave his press conference, we have not had a chance to sleep.”
Many Maui residents say a better balance is needed, with the legislation representing a step in the right direction.
Courtney Lazo is a 10th-generation Lahaina resident who lost her home in the fire and is also a Maui real estate agent.
“I've personally have represented buyers and sellers of units on the Minatoya List,” she said. “And after the fire, you look at your community and what's happening with housing, and it's hard. How do you go back? How do you look at a community that's suffering, people that have nowhere to go, people priced out of Maui, priced out of Lahaina — my family and I have been pushed out of Lahaina — and think it's okay?”
Under the mayor’s initiative, short-term rental use in apartment-zoned districts would be repealed starting July 1, 2025, for West Maui, and January 1, 2026, for the rest of the county.
UHERO is conducting an economic impact study that will help guide the county’s decision.
The Maui Planning Commission meeting lasted 11 hours and about 100 testifiers remained in queue when the meeting recessed at 8 p.m. The commission will reconvene on July 9 to make a recommendation to the council for approval or denial of the proposed ordinance.
The measure will also be heard by the Moloka’i and Lana’i Planning Commissions.
