Short-Term Rental Proposal Sparks Concern Among Maui Residents

Public testimony to resume tomorrow

Jul 22, 2024

In advance of a hearing on Tuesday, Maui residents are expressing concerns about Mayor Richard Bissen’s proposal that would remove thousands of vacation rentals on the island. Watch their comments: Maui residents testify against proposed rules restricting short-term rentals.

The Maui Planning Commission will hear more testimony from community members tomorrow, resuming the June 25 hearing which included nearly ten hours of public comments.

“Maui residents deserve affordable housing, but banning short-term home rentals won’t do anything to help the housing crisis. Instead, it would only seriously damage Maui’s tourism industry – and take hundreds of local jobs away with it,” said Ruth Whittaker, Director of Civic Innovation Policy at Chamber of Progress. “Lawmakers should listen to the dozens of residents who’ve spoken up in opposition.” 

Maui’s proposal comes as other cities weigh similar restrictions on short-term rentals (STRs). New research from Chamber of Progress highlights the economic fallout of such policies, drawing on data from New York City’s severe restrictions on STRs. There, data shows that the new regulations have not effectively reduced rent prices or increased housing availability. A separate analysis of Maui’s proposal estimated a loss of 14,126 local jobs and a 20 percent drop in Maui’s overall GDP if STR restrictions are enacted.

Maui’s ordinance follows Hawaii’s enactment of Senate Bill 2919 in early May, which gives counties across the islands more power to regulate, or even ban, STRs. A day after the law’s passage, Mayor Bissen announced his proposal to phase out 7,160 properties on Maui. If the ordinance passes the County Council, the units will be required to cease operation by July 1, 2026.

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