In early May, Gov. Josh Green signed a law giving counties the specific authority to regulate — and to phase out — short-term rentals (STRs) as part of their authority over zoning. Hot on the legislation’s heels, Maui and Hawaii counties are already deep in discussion over specifics of their next moves. It’s definitely good to see.
Maui’s action, proposed by Mayor Richard Bissen, represents a drastic turnabout in approach that would shut down about 2,200 STRs in West Maui as soon as July 1, 2025, and about 7,000 total STRs throughout Maui as soon as Jan. 1, 2026. Hawaii County’s efforts to more tightly regulate its STRs predate the state law’s passage, and represent a more measured approach. Both counties are fully within their legal authority to change up their islands’ tolerance for STRs, and both are right to tighten STR regulations in light of the impact transient rentals have on affordability and availability of homes for local residents.
Maui made headlines with Bissen’s proposal that the county completely phase out vacation rentals in its apartment-zoned areas — prompted by a housing emergency magnified by the loss of thousands of units in the deadly Lahaina fire of August 2023. His proposal comes with strong support from housing advocates, and the county has responded promptly, as it should under these emergency conditions. A first Maui Planning Commission meeting to hear testimony on the proposed phase-out has been held.
Unfortunately, squabbling over the process to fill empty commission seats left the panel unable to make quorum Tuesday, causing cancellation of a second meeting needed to wrap up hearing testimonies. That session is now scheduled for July 23. After all testimony is considered, the commission will make recommendations to the Maui County Council — but the Molokai and Lanai planning commissions also must consider the proposal before the Council can act.
As to the Maui proposal itself: Some STR owners and proponents have suggested adjusting zoning rather than ending transient rentals in some limited cases, and the Planning Commission should consider this where proper. For example, certain units built before Maui established resort zoning might not be suitable for long-term residence and/or can’t be made affordable.
Maui also has commissioned a report on the STRs targeted for phase-out and their suitability for long-term housing. This study may identify specific cases where costs of conversion outweigh the benefits of providing long-term housing. The Planning Commission must consider these circumstances in making its recommendations, but the dire need for affordable residences on Maui suggests that the mayor’s call to phase out these STRs is largely justified.
On Hawaii island, the county is seeking to expand its definition of “transient” renter to apply to anyone who rents for less than 180 days, rather than one who rents for less than 30 days, as authorized by the recent state legislation. The county, wisely, is also seeking to establish a standard registration process for those operating transient rentals, and raising penalties for those who fail to register or operate according to county rules.
Addressing the argument that operating an STR benefits locals by helping to pay the bills, Hawaii County differentiates rental properties with an owner on site from others. A bill proposes to allow operation of owner-hosted properties anywhere in the county, while unhosted properties could only operate in commercial and hotel-resort areas. This strategy is well-suited for Hawaii County, which has much more land suitable for housing development than Maui.
These early efforts reveal the many complexities involved. STR phase-out is certainly needed, but mindful of each counties’ unique characteristics and zoning rules, a measured approach is justified.