Maui’s Short-Term Rental Shakeup: An Update on the Phase-Out Proposal and What It Means for the Condo Market

Maui’s housing crisis has taken center stage as Mayor Richard Bissen’s proposal to phase out over 7,000 short-term rentals continues to face delays. This bold initiative, which aimed to repurpose vacation rentals into long-term housing, is unlikely to be implemented in 2025 due to opposition and concerns over its economic impact. Initially, the proposal was part of a broader effort to address Maui’s housing shortage, especially in the wake of the August 2023 wildfires that displaced thousands of residents. However, the plan is facing strong resistance from the Maui County Council, which is wary of the potential consequences for the tourism industry and the county’s budget.

As the County Council works to better understand the economic impacts of removing short-term rentals, including a projected loss of 14,000 jobs and $137 million in tax revenue, the mayor and council members have voiced differing opinions. While some argue that the increased housing supply will benefit locals, others are concerned about the economic downturn that may result from disrupting the tourism-dependent economy. This debate is ongoing, and no clear timeline exists for when a final vote might take place.

Kihei and Westside Condos: A Buyer’s Market in Uncertain Times

Amid this uncertainty, one thing has become clear: Maui’s real estate market, particularly for condos in Kihei and the west side, has shifted. With the ongoing discussions about the future of short-term rentals, we’re seeing a buyer’s market emerge in the Kihei condo sector. This market shift presents an excellent opportunity for those interested in buying a condo in Kihei or the west side, as prices may become more favorable for potential buyers looking to make a long-term investment.

With over 7,000 vacation rentals potentially being converted into long-term housing units, the local real estate market is in flux. While the broader implications of these changes will take time to unfold, the immediate effect has been a shift toward a more buyer-friendly market in Kihei. This provides those interested in purchasing property with the chance to explore opportunities they may not have had before.

How I Can Help You Navigate This Shifting Market

As the local housing market continues to evolve, it’s important to have a real estate expert who understands the unique dynamics of Maui’s condo market. I have a deep understanding of the condo markets in Kihei and the Westside and am happy to help those interested in exploring buying opportunities. Whether you’re a first-time buyer or an investor, I can guide you through the process and help you make informed decisions based on the current market trends and the potential impact of changing regulations.

The ongoing discussions around short-term rental conversions may present challenges, but they also open up opportunities for buyers who are prepared to act. If you’re interested in learning more or have questions about buying a condo on Maui, feel free to reach out. I’m here to help you navigate this exciting time in the market.

Sources:
Civil Beat, March 31, 2025