Short-term rentals and gentrification: alarm bells ringing in Hawaii, too. Maui bans rentals under six months.

A crackdown on short-term rentals. In the heart of the Pacific. The governors of Maui County, which encompasses the second largest island in the Hawaiian archipelago, Maui, as well as four smaller islands, have just approved it. The new law aims to eliminate a large portion of the county's current vacation rentals to address the shortage of residential housing, exacerbated by the fire that destroyed the Lahaina area on Maui two years ago.

This is the latest initiative being implemented by top vacation destinations around the world to combat the infiltration of tourists into residential neighborhoods and the associated risk of community disruption. Recently, Spain ordered Airbnb to block over 65,000 vacation listings on its platform for violating its rules. Last month, thousands of protesters in cities like Venice and Barcelona marched against the evils of overtourism. These are just a few high-profile cases.

The Maui County Council's Housing Committee voted 6-3 to approve the bill, which would eliminate a loophole that allowed apartment owners in residential areas to rent out their units for days or weeks at a time instead of the 180-day minimum required by law. The requirement would go into effect in the West Maui district, which includes Lahaina, in 2028. The rest of the county would have until 2030 to comply.

The council has yet to vote on the bill, but the committee's result is a strong indicator of the final outcome, as all nine council members serve on the Housing Committee. The mayor is expected to sign the bill, which he proposed.

“Bill 9 is a critical first step in restoring our commitment to prioritizing housing for local residents and ensuring a future where our keiki can live, grow, and thrive in the place they call home,” said Maui Mayor Richard Bissen, using the Hawaiian term for children.

Vacancy contracts currently account for 21% of all rentals in the county, which has a population of approximately 165,000. An analysis by economists at the University of Hawaii predicted that the measure would add 6,127 units to Maui's long-term housing stock, increasing this type of supply by 13%.

Opponents have questioned the ability of local residents to afford the apartments in question, noting that many of the buildings in which they are located are outdated and their units are subject to high mortgages, insurance payments, maintenance costs, and special assessments.

Alicia Humiston, president of the Rentals by Owner Awareness Association, said her apartment is located in a hotel zone, so it won't be affected. But she predicted the measure would hurt housekeepers, plumbers, electricians, and other small businesses who help manage vacation rentals. "It's not the best solution for the community," she concluded.

Bissen proposed the law last year after fire survivors and activists camped on a popular tourist beach to demand change.

The University of Hawaii study found that only about 600 new housing units are built in the county each year, meaning converting vacation rentals would equal a decade of new construction. Apartment prices would drop by 20-40%, according to the study's estimates.

The report also predicted that a quarter of tourist accommodations in Maui County would disappear and that tourist spending would drop by 15%. Gross domestic product was also estimated to contract by 4%.

The mayor stated that this economic analysis failed to provide a comprehensive view of the situation, emphasizing that families are split when high housing costs push relatives away and that cultural knowledge disappears when generations leave Maui. He also explained to the council that the bill was part of a broader housing strategy that would include new housing construction, infrastructure investments, and a ban on illegally operated vacation rentals. He added that there are limits to the amount of new housing that can be built due to water supply and sewer infrastructure constraints. Tourism will continue on Maui, but it must be done in a way that "doesn't empty our neighborhoods," Bissen said.

The mayor's staff told council members that visitor spending will decline with the measure, but that most of the decline will be in lodging. Since 94% of those who own vacation rentals in residential areas do not live on Maui, they stated that much of this income already comes from abroad. They projected that the county budget could withstand an estimated $61 million drop in annual tax revenue resulting from the measure.