The wildfires that devastated the Lahaina area of Maui might seem like a distant nightmare, but locals are still facing infrastructural struggles over two years later.
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One of the main culprits is a lack of housing available to local residents. Maui, with its limited space and huge popularity amongst tourists, has a disproportionate number of hotels and rentals available for visitors compared to inhabitants.
Housing issues like this are a growing issue in a number of tourist hotspots. Earlier this year, Spain axed over 60,000 Airbnb rentals that were operating without legal licenses. Meanwhile, New York City made the decision to ban whole-apartment short-term rentals two years ago—which has shown mixed results.
But in the case of Maui, the housing crisis has been exacerbated by damage from the wildfire, which wiped out hundreds of homes. According to a study from the University of Hawaii, around 15% of the area’s total housing was dedicated to short-term tourist rentals when the fire occurred back in 2023. The same study found that 50% of Lahaina residents who lost their homes in the wildfire were still displaced.
So, will Maui’s short-term rentals actually get the boot? And when will we know?
Inside the charge to curb Maui’s short-term rentals
Here’s what we know. On December 1st, 2025, the Maui County Council approved a bill that proposes legislation that will phase out thousands of short-term rental licenses across the island. The bill focuses on eliminating rentals that are in apartment-zoned districts, while re-zoning around 7,000 existing short-term rentals.
The bill, which was approved by a 5-3 vote, will face ongoing adjustments and approvals. The goal is to create a greater balance between full-time residents, part-time residents, and tourists. To sweeten the deal, rental owners would be offered tax reductions.
On December 15, 2025, the bill will face another vote. If it’s approved, the law will go into effect. However, short-term rentals wouldn’t be affected until 2029 and 2030 for West Maui and the rest of the island, respectively.
