Maui Bans 6,200 Vacation Rentals to House Wildfire Survivors

Historic Bill Ends Decades of Tourist Housing

On December 15, 2025, Maui County made history. The County Council voted 5-3 to pass Bill 9, and Mayor Richard Bissen signed it into law hours later.

The measure phases out over 6,200 vacation rentals in apartment-zoned areas across West and South Maui.

Those units will now have to convert to long-term housing for local residents.

The move comes more than two years after the Lahaina wildfire displaced thousands and turned a housing crisis into an emergency.

What happens next could reshape how Hawaii balances tourism with the needs of the people who actually live there.

West Maui Converts by 2029

Units in West Maui will need to be phased out by January 1, 2029, with those in South Maui following by January 1, 2031. The staggered deadlines give property owners time to transition their units or apply for rezoning.

The delay in implementation gives short-term rental operators time to transition, or amortize, their properties to residential use.

West Maui got the earlier deadline because the Lahaina fire hit that region hardest, and displaced families there need housing the most.

Lahaina Fire Sparked the Push

On August 8, 2023, a massive wildfire tore through Lahaina, a town of 12,900 people on the island of Maui. The fire took the lives of at least 102 people, while destroying over 2,200 structures and causing $5.

5 billion in property damage. The wildfire displaced over 12,000 people and wiped out much of the town’s affordable housing.

Maui had been facing a shortage of long-term housing even before thousands of Lahaina residents lost their homes in the fire.

The disaster turned a slow-burning crisis into an emergency that demanded action.

Vacation Rentals Dominated Housing

Today, transient vacation rentals make up 21% of Maui County’s overall housing stock, more than any other county in Hawaii.

That figure stunned even longtime residents who knew tourism dominated the island economy. Minatoya List TVRs represent 47% of all TVRs on Maui.

Buildings originally meant for local families had gradually shifted to serving visitors, and as prices climbed, working residents found themselves priced out of their own communities.

Most Owners Live Somewhere Else

94% of the housing was owned by people outside Maui, and most are owned by people outside Hawaii. Mayor Bissen highlighted this statistic repeatedly during the debate.

“Decisions about Maui’s housing should be guided by the needs of the people who live here, not by outside interests trying to protect profits,” he said.

For supporters of Bill 9, those numbers explained why local families kept losing out on housing even as condo buildings multiplied.

A 1989 Loophole Created the Problem

In 1989, the Council tried to restrict short-term vacation rentals to land zoned for hotel use.

But an opinion written by then-Deputy Corporation Counsel Richard Minatoya exempted units built before March 5, 1991.

The affected properties have been referred to as the “Minatoya List. ” That legal opinion let apartment-zoned condos keep operating as vacation rentals for decades.

Bill 9 repeals that exemption and closes the loophole for good.

Fire Survivors Led the Fight

Grassroots organization Lahaina Strong organized rallies around creating long-term housing, while advocating for the passage of Bill 9.

Members of Lahaina Strong spent months protesting and camping on Kaanapali Beach alongside wildfire survivors.

In March 2024, Lahaina Strong flew to the State Capitol and championed a state bill that allows counties to regulate their own vacation rentals.

The group collected over 2,000 petition signatures and testified for hundreds of hours across council hearings.

Critics Predict Major Economic Losses

The University of Hawaii Economic Research Organization estimated that banning 6,127 short-term vacation rentals could trigger the loss of 1,900 jobs, $900 million in annual visitor spending and $60 million in property tax revenue by 2029.

Council Vice-Chair Yuki Lei Sugimura said the county risks losing tens of millions of dollars annually in property and tourism-related taxes.

Property owners have threatened lawsuits, and the Realtors Association of Maui warned the bill could backfire.

Half the Units May Keep Operating

The owners of 4,519 units could apply to be rezoned into new H3 or H4 hotel designations, although there’s no assurance their applications would be approved.

The council created these new zoning districts while debating Bill 9 as a compromise.

If all of them get rezoned, Council Chair Alice Lee said only 1,500 units or so would be available for housing for local residents.

Supporters argue that even partial success beats the status quo.

Condo Prices Already Falling

“The prices for condos are already dropping,” organizer Jordan Ruidas said. “The last write up I saw, condo prices have dropped more than 20%, so it’s honestly just making it more affordable already.”

Removing the ability to operate vacation rentals would dramatically reduce the demand for these units, potentially triggering significant price reductions and improving their affordability for residents.

Supporters see early signs that the market is already responding.

A New Chapter for Maui

When Monday’s meeting was adjourned, the audience inside the council chambers erupted into cheers and applause. “We are only at the front end of this movement,” Lahaina Strong leader Paele Kiakona said.

“At the very least, our community will be more involved because of this momentum.” Lawsuits may still come, and half the units could win rezoning.

But for families who lost everything in the fire, the vote marked something they had not felt in two years: hope that they might finally come home.

Visiting Maui, Hawaii

Maui remains open to visitors despite the ongoing housing debate, and tourism dollars still support the island’s recovery.

The island stretches about 48 miles long and offers everything from the 10,000-foot summit of Haleakala to the beaches of Wailea and Kaanapali.

Lahaina’s historic Front Street was largely destroyed in the 2023 fire, and much of the town remains closed to the public as rebuilding continues.

Visitors can still explore upcountry Maui, the Road to Hana, and South Maui resort areas. Check local advisories before visiting West Maui, as access and conditions continue to change.

This article was created with AI assistance and human editing.

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