Maui Moves Closer To Phasing Out Most Short Term Rentals By 2030

Maui, Hawaii’s second most visited island, is moving ahead with a major shift in how visitors stay on the island. Local leaders are one step closer to phasing out thousands of short term vacation rentals, especially in apartment zoned areas that were once quietly converted into tourist accommodations. The goal is to free up much needed housing for residents while still keeping tourism alive in a more sustainable way.

On December 1, the Maui County Council approved the first reading of Bill 9, a proposal that would gradually wind down many of the island’s older short term rentals. The vote was 5 to 3 in favor, pushing the controversial measure closer to becoming law. A final vote is expected on December 15.

What Bill 9 Is Trying To Do

Bill 9 was first introduced in May 2024 by Maui Mayor Richard Bissen and has since gone through amendments and public debate. At its core, the bill is designed to bring Maui’s housing and visitor mix more in line with the county’s long term vision. The Maui Countywide Policy Plan calls for a “sustainable balance” between full time residents, part time residents, and visitors.

Under the bill, thousands of short term rental units in apartment zoned districts that were grandfathered in decades ago would eventually lose their ability to be used as vacation rentals. Over time, these condos and apartments would be converted back into long term housing, opening up more options for people who live and work on the island year round.

County leaders argue that this is one of the fastest ways to increase the supply of homes for locals, instead of waiting years for new construction projects to be approved and built. The mayor’s office has said that repurposing existing units into long term housing can provide relief sooner than relying on new development alone.

Pushback From Short Term Rental Owners

Not everyone is happy about the direction Maui is taking. Owners of short term rentals and some business groups have raised serious concerns about the impact of Bill 9. They worry about losing income, shrinking local tax revenue, and the potential for fewer visitors staying on the island.

According to the bill’s own language, Maui could see a drop in tax collections by millions of dollars each year as units shift from tourist rentals to long term residential use. Those taxes currently help fund county services, infrastructure, and tourism related programs.

Hosts and property managers also argue that short term rentals support jobs in cleaning, maintenance, hospitality, and tours, and that scaling back too aggressively could hurt workers who depend on visitor spending. They are asking county leaders to move more slowly or soften some of the restrictions.

Short Term Rentals And Maui’s Housing Crisis

Maui’s housing challenges did not appear overnight, but they have reached a breaking point in recent years. According to the University of Hawaii Economic Research Organization’s 2023 Hawaii Housing Factbook, short term rentals account for roughly 15 percent of the housing supply on Maui. That share is noticeably higher than on Oahu, where more housing remains in the long term market.

The problem became even more urgent after the 2023 Lahaina wildfire, a devastating event that destroyed large parts of the historic town and displaced thousands of residents. Many people who lost their homes in West Maui are still without permanent housing. Recent research from UHERO suggests that nearly half of those displaced have not yet been able to return to stable housing in West Maui.

Local leaders say that allowing so many units to function as de facto hotels makes it harder for teachers, service workers, healthcare staff, and other essential employees to live close to their jobs. Bill 9 is being framed as one piece of a broader attempt to keep Maui livable for the people who keep the island running.

What This Means For Maui Travelers

If you are planning a trip to Maui, you will not notice dramatic changes right away. The bill is set up as a phased transition, not an overnight shutdown.

The key detail is timing. Under the current version of Bill 9:

• Short term rental units in West Maui, including popular areas such as Lahaina and Kaanapali, would lose their right to operate as vacation rentals after January 1, 2029.
• Short term rental units in the rest of the island would have until December 31, 2030 before they must convert to long term residential use.

This means travelers can still book many of these units for the next several years, but owners and managers will be planning for a very different future. Over time, more of those apartments and condos should rejoin the local housing market as homes for residents rather than visitor stays.

It is also important to note that Maui is not eliminating every short term rental. The amended bill allows around 7,000 units to remain in the visitor pool because they have been rezoned or designated to continue operating as vacation rentals. Hotels, resorts, and legally permitted short term rentals outside the targeted apartment zones will still be available.

The Bigger Picture For Maui’s Future

Maui’s move to restrict many short term rentals fits into a wider conversation happening across Hawaii and other popular destinations about how to balance visitors and locals. Earlier in 2024, Hawaii’s governor attempted to introduce statewide regulations on vacation rentals, highlighting how central the issue has become.

For Maui, Bill 9 is both a response to a long standing housing crunch and a reaction to the trauma of the Lahaina wildfire. The island remains extremely reliant on tourism, but it is also trying to avoid becoming a place where workers and families can no longer afford to live.

For travelers, the takeaway is simple. You will still be able to visit Maui in the coming years, stay in hotels and legal short term rentals, and enjoy the island’s beaches, trails, and culture. But as 2030 approaches, the options for renting a random condo in an apartment building may shrink.

If you care about traveling responsibly, it is worth paying attention to which properties are operating within local rules and how your stay affects the island’s housing situation. Maui is clearly signaling that it wants visitors, but not at the cost of losing the people who call the island home.

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This article was written by Hunter and edited with AI Assistance