Maui Acts to Address Housing Crisis One Year After Wildfires

One year after the devastating Maui wildfires, lawmakers on the island have taken action to address a housing shortage. A bill was passed by the Maui County Council's housing committee, aiming to reduce the number of vacation rentals. This move is part of a broader trend of tourist destinations pushing back against the impact of tourism on local communities.

The legislation seeks to close a loophole that allowed condo owners in apartment zones to rent their units for short periods. The mandate would be implemented in the West Maui district, including Lahaina, by 2028, with the rest of the county following suit by 2030. The mayor is expected to sign the bill, which he proposed.

The mayor emphasized the importance of prioritizing housing for local residents and securing a future for the community's children. The group Lahaina Strong, which had been advocating for the measure, echoed these sentiments, highlighting the pre-existing housing crisis that was exacerbated by the fire. Vacation rentals currently constitute a significant portion of the county's housing stock.

An analysis by University of Hawaii economists suggests the measure could add thousands of units to Maui's long-term housing supply, potentially increasing it by a substantial percentage. However, opponents have raised concerns about the affordability of the condos in question, considering factors such as aging buildings and associated costs. Some also predict negative impacts on local businesses that service vacation rentals.

The mayor's proposal followed demands for change from wildfire survivors and activists. The University of Hawaii study also projected a significant drop in condo prices and a decrease in visitor accommodations and spending. The mayor argued that economic analyses often fail to capture the full impact of high housing costs on families and cultural preservation.

The mayor framed the bill as part of a larger housing strategy, including new construction, infrastructure investment, and addressing illegal vacation rentals. He acknowledged limitations on new housing development due to constraints on resources. The goal is to manage tourism in a way that does not negatively impact local neighborhoods.

The mayor's staff indicated that while visitor spending would decline, the impact on the county budget would be manageable. They noted that a large percentage of the income from vacation rentals in apartment zones already flows off-island. The Lahaina wildfire, which caused widespread destruction and loss of life, further highlighted the need for housing solutions.