Maui Vacation Rental Ban Advances: What Bill 9 Means for Owners, Buyers, and Sellers

Published: July 25, 2025

By Joe Erlemann | The Maui Property Team at Compass

🌺 Big Changes Ahead for Maui Short-Term Rentals

On July 24, Maui County’s Housing & Land Use Committee voted 6–3 to advance Bill 9, a major piece of legislation that could reshape Maui’s short-term rental (STR) landscape.

If passed, the bill would phase out legal short-term vacation rentals in apartment-zoned areas, impacting thousands of owners and investors, particularly in South and West Maui communities like Kihei, Lahaina, and Kaanapali.

🏘 What Bill 9 Proposes

  • Phases Out ~7,000 LEGAL STRs

These include “Minatoya list” condos, properties granted STR rights under the longstanding interpretation of Maui’s zoning code for apartment districts.

  • Deadline Timeline

       - West Maui units must stop STR operations by 2028

             - Remaining parts of Maui would follow by 2030

  • Hotel and Resort-Zoned Properties

These remain unaffected and continue to allow short-term rental use.

📉 The Economic Trade-Off

While the bill is framed as a solution to Maui’s housing crisis, the impact could be far-reaching:

  • A University of Hawaiʻi study suggests this transition could free up 6,100 long-term rental units, potentially increasing affordable housing inventory by 13%.
  • However, it also forecasts:

                        - A 4% reduction in Maui’s GDP

                        - A 15% drop in visitor spending

                        - An annual loss of $60 million in property tax revenue

                        - Job losses across cleaning, property management, and visitor services sectors

⚖️ Legal and Political Debate

Supporters, including Mayor Richard Bissen, believe the bill is essential to curb speculation and restore housing to local families. Others, such as Councilmember Alice Lee, expressed support “with reservations,” citing concerns over financial feasibility and long-term impacts.

Many property owners, STR operators, and local business leaders argue the bill doesn’t address core issues like zoning reform, infrastructure, or realistic workforce housing solutions. They fear that this legislation may bring unintended consequences for Maui’s economy, and for residents who rely on STRs for income.

Most notably, legal action is expected if Bill 9 is passed. Property owners may challenge the county’s authority to revoke longstanding STR rights, especially for properties purchased and operated under the legal protection of the Minatoya opinion.

🧭 What This Means for You

If you own, are planning to buy, or are thinking about selling property in Maui, here’s how this could affect you:

  • Buyers & Investors

If STR income is part of your investment plan, this bill may change the outlook for certain properties. However, hotel-zoned condos remain a stable option and are not impacted by Bill 9.

  • Current STR Owners

You may need to explore long-term rental strategies, potential rezoning, or sale options. It’s important to begin evaluating your timeline and goals now.

  • Sellers

This bill could influence buyer sentiment, pricing, and marketing strategies, especially for units currently operating as STRs in apartment zones.

📆 What’s Next?

Bill 9 now moves to the full Maui County Council for additional readings and a final vote. If passed, it will likely be signed into law in early 2025.

Until then, there is still time for public input, amendments, and preparation.

💬 Let’s Talk About Your Options

This is a major moment for Maui real estate, and I’m here to help you navigate it with clarity and confidence.

Whether you’re looking to protect your investment, explore hotel-zoned alternatives, or discuss your long-term plans, I’d be happy to connect.

Or call/text me directly at 808.283.9892

Joe Erlemann

Team Leader | The Maui Property Team at Compass

📧 josef.erlemann@compass.com

🌐 www.MauiProperty.com