The Maui County Council has officially enacted Bill 9, marking a significant turning point for the island's short-term rental market. The legislation, which passed with a 5-3 vote on first reading on December 2, 2025, and then officially signed into law, aims to phase out thousands of vacation rentals in apartment-zoned districts by the end of 2030. This decision is expected to have far-reaching consequences for Hawaii's entrepreneurs, investors, and professionals.
The primary goal of Bill 9 is to address Maui's ongoing housing crisis by converting approximately 7,000 units from short-term vacation rentals to long-term residential housing. This initiative comes in the wake of the devastating August 2023 wildfires, which exacerbated the already critical shortage of affordable housing on the island. Proponents of the bill, as highlighted in a recent report by Maui Now, believe that prioritizing local families over visitor spending is crucial for the community's long-term well-being. This shift reflects a broader debate about the balance between tourism and the needs of permanent residents.
The implications of Bill 9 are substantial for various stakeholders. Real estate investors who own properties in apartment-zoned districts face the prospect of either converting their units to long-term rentals or potentially selling their properties. This could lead to a shift in the local real estate market, with an increased supply of long-term rental units. However, there are also concerns, as USA Today reported, about potential losses in tax revenue, jobs, and the overall impact on tourism.
For entrepreneurs and small business owners, particularly those in the hospitality sector, the new law presents both challenges and opportunities. Businesses that rely on short-term rentals, such as cleaning services, property management companies, and local tour operators, may experience a decrease in demand. Conversely, there could be a rise in demand for businesses that cater to long-term residents. Moreover, the legislation is likely to intensify the existing affordable housing crisis. To that effect, Civil Beat has noted that the bill is to address the issue, but has also caused some division in the community regarding how to deal with the economic effects.
Looking ahead, the implementation of Bill 9 will be closely monitored by all stakeholders. The Maui County Council is expected to take up a proposal to examine hotel zoning districts on December 19, which could offer alternative options for some rental properties. The long-term effects on Maui's economy, housing market, and tourism industry will unfold over the next few years. The council has also approved an amendment requiring annual reports on the real property tax classification of affected parcels through 2030.
In conclusion, the enactment of Bill 9 marks a pivotal moment for Maui, signaling a shift in how the island balances tourism with the needs of its residents. The actions taken now will define the real estate, investment, and business landscape for years to come.
