New Maui legislation passes, aims to boost housing supply after destructive Lahaina wildfire

Lawmakers on Maui have passed legislation aimed at eliminating a large percentage of the island's vacation rentals to address a housing shortage exacerbated by a wildfire that destroyed most of Lahaina two years ago. The bill would close a loophole that has allowed owners of condos in apartment zones to rent their units for short periods, instead of a minimum of 180 days. The mandate would take effect in the West Maui district in 2028 and the rest of the county in 2030. Vacation rentals currently account for 21% of all housing in the county, and the measure is expected to add 6,127 units to Maui's long-term housing stock, increasing supply by 13%. Opponents argue that local residents may not be able to afford the condos, which often come with high mortgages and maintenance costs. The mayor believes the measure is a critical step in prioritizing housing for local residents and securing a future for the community. The legislation is part of a broader housing strategy that includes building new housing, investing in infrastructure, and stopping illegally operated vacation rentals. The mayor acknowledges that tourism will continue on Maui, but it must do so in a way that doesn't "hollow out our neighborhoods." The measure is expected to result in a decline in visitor spending, but most of the drop would be on lodging, and the county budget is expected to withstand the estimated $61 million decline in annual tax revenue.