Hawaii lawmakers take aim at vacation rentals after Lahaina wildfire amplifies Maui housing crisis

This 2023 image provided by Amy Chadwick shows where her home used to stand after a wildfire in Lahaina, on the Hawaiian island of Maui. Chadwick moved to Florida where she could stretch her homeowners insurance dollars. She’s worried Maui’s exorbitant rental prices, which she blames in part on vacation rentals hogging up limited housing supply, will hollow out her tight-knit town by similarly forcing others to leave.

Amy Chadwick poses outside her current home Monday, April 8, 2024, in Satellite Beach, Fla. Chadwick, a victim of the fires in Hawaii, moved to Florida where she could stretch her homeowners insurance dollars while she waits for her lot to be cleared and for permission to rebuild. FILE – Burned cars and propane tanks with markings on them sit outside a house destroyed by wildfire, Friday, Dec. 8, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community.

FILE – People walk by a tent with a “Lahaina Strong” flag, Wednesday, Dec. 6, 2023, at Whalers Village on Kaanapali Beach in Lahaina, Hawaii, as a group of wildfire survivors camps on the resort beach to protest and raise awareness for better long-term housing options for those displaced. HONOLULU — But after a devastating fireand reduced Chadwick’s home to white dust, the cheapest rental she could find for her family and dogs cost $10,000 a month.

Vacation rentals are a popular alternative to hotels for those seeking kitchens, lower costs and opportunities to sample everyday island life. Supporters say they boost tourism, the state’s biggest employer. Critics revile them for inflating housing costs, upending neighborhoods and contributing to the forces pushing locals and Native Hawaiians

Also outside the burn zone are dozens of short-term rental condominium buildings erected decades ago on land zoned for apartments. Lawmakers also considered trying to boost Hawaii’s housing supply by forcing counties to allow more houses to be built on individual lots. But they watered downShort-term rental owners said a phase-out would violate their property rights and take their property without compensation, potentially pushing them into foreclosure. Some predicted legal challenges.

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