Maui has taken a major step toward a crackdown on vacation rentals, with the Maui Planning Commission unanimously voting in favor of a proposal that would ultimately eliminate more than 7,000 short-term rentals across the island.
The proposed ordinance would focus on phasing out short-term rentals in "apartment districts" located primarily throughout West and South Maui. If approved by the Maui County Council, the measure would take effect on July 1, 2025 for short-term rentals in the West Maui area and Jan. 1, 2026 for all remaining apartment districts.
Of the more than 13,600 short-term rentals on Maui, about 45% fall within the apartment districts outlined in the legislation.
The ordinance, proposed by Maui Mayor Richard Bissen, is intended to help the island convert more short-term rentals into long-term housing, addressing a chronic housing crisis that was exacerbated by last year's catastrophic Lahaina wildfires. More than 5,000 homes were destroyed by the fires, displacing over 12,000 people.
In a presentation made during a Maui Planning Commission meeting last month, housing data consultant Matt Jachowski reported that 53% of families living in Maui are considered "rent burdened," while 28% are considered "severely rent burdened."
Jachowski cited data from the Council for Native Hawaiian Advancement indicating that Maui's average rents have increased approximately 40% since last year, with a one-bedroom apartment currently going for an average of $2,500 per month, up from $1,800 in 2023.