Tensions have run high in West Maui as there are still residents without adequate housing.
The Hawaii State Legislature is considering whether to give the state’s county governments the latitude to ban short-term rentals in a pair of bills currently working their way through the state’s Senate and House of Representatives.
Legislators in each chamber proposed the bills after the wildfires that swept through the Maui town of Lahaina on August 8, 2023, killing over a hundred people. The fires also destroyed some 4,000 housing units, exacerbating the island’s affordable housing crisis. The housing crisis is a statewide problem, with each of the state’s counties—Hawaii Island, Maui (which includes the islands of Lanai and Molokai), Oahu, and Kauai (which includes Ni’ihau)—facing their own lack of affordable housing for full-time residents.
The housing crisis has formed a “brain drain,” as many residents—particularly Native Hawaiians—have left the state for more affordable housing on the mainland. The 2020 census was the first time the number of people of Native Hawaiian ancestry living in the other 49 states outnumbered those of Native Hawaiian ancestry living in Hawaii.
A recent study estimated that just over 5% of the state’s total housing stock is given over to short-term rentals, but it’s estimated to be 15% on Maui, second only to Kauai at 17%. In the Lahaina census tract, the estimate is even higher—a whopping 87%. In the parts of Lahaina untouched by the fires, this means that residents who are currently living in hotels or temporary structures are sharing space with visitors who are renting homes in their community.
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The bill is supported by many Hawaii residents and the hotel industry, which would benefit from decreased competition for lodging spend by visitors. The bill is understandably opposed by Hawaii residents and non-residents who own properties they are currently marketing as short-term rentals. Attorney David Louie—a former Hawaii attorney general–lobbies for the rental platform and argues that the bills are unconstitutional, but current attorney general, Anne Lopez, disagrees.
Oahu County already limits short-term rentals under 30 days to resort areas in Waikiki and Kailua, but recent efforts to limit longer—but still transient—rentals outside of resort areas were quashed by a district court judge. Maui officials also proposed tax breaks for short-term rental owners who chose to rent their properties longer-term to residents displaced by the fires, but many Maui residents are still without permanent housing.
It’s worth explaining that the measures are meant to limit short-term vacation rentals in housing units that are otherwise constructed for long-term, permanent housing, like single-family homes and condo units outside of resort areas. Condo hotels and commercial vacation rental communities—which are zoned as commercial properties—would not be affected by any country restrictions on short-term rentals.
Tensions have run high in West Maui as there are still residents without adequate housing. A march on April 1 by the community advocacy group Lahaina Strong—which is comprised mostly of fire survivors—was meant to demand executive action from Maui County and Hawaii state governments to address the housing crisis.
The Federal Emergency Management Agency (FEMA) is currently subsidizing hotels and other temporary housing for over 3,000 residents. Funding from the agency is set to expire on April 10, and the state of Hawaii is seeking an extension. On April 4, FEMA approved $35 Million to rebuild three public housing structures for elderly and disabled residents that were destroyed in the August fires.
Visitor arrivals on Maui have been depressed since the fires. In January and February of 2024, the Hawaii Tourism Authority reported visitor arrivals to the island of Maui were down nearly 21% compared to the same period last year. Visitor arrivals on Oahu, Kauai, and the Island of Hawaii all saw visitor growth in January and February compared to the same period in 2023.
FEMA is making it worse. Besides being slower than every church and charity to help, they are offering up to $5k/month for (small) condos, further driving up already ridiculous rents for the rest of the locals.
Oh, please! If the churches and charities were truly effective there would be no need for FEMA to be renting anything. Churches and charities didn't do the hard work of searching the rubble and recoving remains of loved ones; FEMA did. For sure, if FEMA wasn't there y'all be screaming "Where is FEMA?!"