Update, October 2026: This article was first published May 15, 2025. Since then, Bill 9 became law (Ordinance 5909). Vacation rental use in apartment-zoned Minatoya list condos ends January 1, 2029 in West Maui and January 1, 2031 in South Maui and the rest of the county, unless a property is rezoned. Hotel-zoned condos are not affected. For current details see our Maui Bill 9 guide, the Minatoya list by area and hotel-zoned condos.

Maui’s real estate market, with its aloha charm and 2.5 million annual visitors, is a dream for first-time investors. In 2025, median home prices hit $1.37M (up 18.8%), while condos offer deals at $715,000 (down 19.7%). But high costs and unique rules can challenge newcomers. Whether you want a Kihei condo for rentals or a Kula home for growth. Here’s what you need to know to invest smart in Maui.

1. Know the Market

Maui’s market is driven by tourism and remote work, with 61.6% more homes and 108.3% more condos listed in 2025. Homes sell at 96.3% of list price, condos at 94.5%, with prime properties gone in 59 days. Condo sales dipped 40% due to a proposed short-term rental (STR) ban, but tourism’s 2% growth fuels demand.

Tip: Focus on Kihei condos ($600,000-$1M) for deals or Upcountry homes ($1M-$2M) for value. 

2. Budget for High Costs

Maui’s cost of living is well above the national average, with key expenses:

  • Homes: $1.37M median; condos $715,000 in Kihei, $1.5M-$3.6M in Wailea.
  • HOA Fees: $1,000+/month for condos.
  • Insurance: Costs have risen sharply since the 2023 wildfires.
  • Taxes: Rates depend on the property tax class, and qualifying long-term rentals may be eligible for an exemption.
  • Maintenance: $500-$1,000/year for salt-air wear.

Financing: Get pre-approved and consider Debt Service Coverage Ratio (DSCR) loans, using rental income to qualify. Rates are in the low 6% range.

3. Pick the Right Property

Choose based on goals:

  • Condos: Great for STRs in hotel-zoned Wailea or Kaanapali, but apartment-zoned units risk STR bans.
  • Homes: Best for long-term rentals or personal use, in areas like Wailuku or Kula.
  • Land: Long-term play for custom builds, starting at $500,000.

Tip: Browse for Kihei condos near Ko Mahi’ai Makeke or Wailea estates by Havens Seafood.

4. Master STR Rules

Hotel-zoned STRs earn $200-$600/night, but a proposed ban on apartment-zoned units looms. Verify zoning and budget for 30% management fees. Smart tech, like keyless locks, can simplify management.

Tip: Stick to hotel-zoned condos and check regulations.

5. Work with Experts

Local realtors navigate coastal rules, sea level rise (3.2 feet projected), and fire recovery. They secure 5-10% off list prices and verify zoning.

6. Plan for Risks

High prices, limited home inventory (5.7 months), and recession risk pose challenges. Budget for higher grocery costs and monitor STR rules.

Why Invest Now?

Maui’s 2025 market offers high condo inventory, easing rates (near 5.5% by year-end). Tourism and remote work drive demand, making Kihei condos or smart-equipped homes prime picks.