Maui’s Housing and Land Use Committee has received a report from the Bill 9 Temporary Investigative Group (TIG), recommending new hotel zoning districts to preserve select short-term rentals (STRs) in apartment-zoned areas amid the ongoing housing crisis. This development could provide a lifeline for some Maui vacation rentals, balancing economic needs with housing demands, while shaping Maui real estate opportunities in 2025.
Bill 9 and the TIG Recommendations
Bill 9, advanced 6-3 on July 24, 2025, aims to phase out ~7,000 STRs on the Minatoya List in A-1 and A-2 apartment districts by 2028 in West Maui and 2030 island-wide, converting them to long-term housing. The TIG, chaired by Council Member Nohelani Uʻu-Hodgins, met seven times in September and proposes two new H-3 and H-4 Hotel Districts, mirroring A-1 and A-2 but permitting STRs outright. This would allow rezoning for high-value properties, those in sea-level rise areas, or timeshares, with expedited processes skipping initial Council review.
The TIG’s report, submitted October 14, 2025, emphasizes no amendments to Bill 9 itself, aiming to eliminate gray areas while ensuring converted units serve local families. Legislation would go directly to planning commissions, though implementation may extend beyond the current Council term.
Public Debate: Housing vs. Economy
Public testimony was divided, reflecting Maui’s tensions post-2023 wildfires. Residents like De Andre Makakoa and Junya Nakoa urged prioritizing housing in Lahaina, arguing shoreline exemptions ignore immediate needs. Owners like Brian Whittman warned of out-of-state buyers snapping up discounted properties, losing tax revenue and jobs without aiding locals. Marilyn Steinmetz feared bankruptcy from lost income, while Ruel Metcalf suggested using $7 million monthly STR taxes to buy 10 homes monthly for affordable rentals.
David Diven supported distinguishing hotels from apartments, and Steve Meyer highlighted midterm rentals for nurses and workers. The committee deferred action under Sunshine Law, with deliberations scheduled after six business days; first reading is November 12, 2025.
Implications for Maui Real Estate
Bill 9’s potential phase-out has softened condo prices 28.6% to $700,000 median, with sales down 28.8% year-to-date, creating a buyer’s market in Kihei or Napili. New H-3/H-4 zones could stabilize high-value beachfront condos in Wailea or Kaanapali, preserving STR income while converting others to long-term housing. Single-family homes ($1.315 million median) remain resilient, with inventory up 61.6%, offering negotiation leverage. Upcountry like Kula, less affected, provides family-friendly alternatives.
Maui property management can pivot properties to comply, with tourism recovery (August 2025 spending up 23% to $430.7 million) supporting rentals Source: mauinow.com. Risks of legal challenges and revenue loss (15% tourism drop) loom, but rezoning could mitigate impacts.
Navigate Bill 9’s Impact on Your Investment
Bill 9’s evolution offers a balanced path for Maui real estate opportunities, blending housing needs with economic vitality. From rezoned condos in Lahaina to homes in Pukalua, now is the time to act. Don’t let uncertainty delay—secure your Maui future today! Please contact the Maui Property Team at 808-217-8832 to explore your options with Maui Property.
