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

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An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents.

A single mother of two, Amy Chadwick spent years scrimping and saving to buy a house in the town of Lahaina on the Hawaiian island of Maui. But afterleveled Lahaina in August and reduced Chadwick's home to white dust, the cheapest rental she could find for her family and dogs cost $10,000 a month.

The Aug. 8 wildfire killed 101 people and destroyed housing for 6,200 families, amplifying Maui's already acute housing shortage and laying bare the enormous presence of vacation rentals in Lahaina. It reminded lawmakers that short-term rentals are an issue across Hawaii, prompting them to consider bills that would give counties the authority to phase them out.

The blaze burned single family homes and apartments in and around downtown, which is the core of Lahaina's residential housing. An analysis by the University of Hawaii Economic Research Organization found a relatively low 7.5% of units there were vacation rentals as of February 2023. Money is a powerful incentive for owners to rent to travelers: a 2016 report prepared for the state found a Honolulu vacation rental generates 3.5 times the revenue of a long-term rental.

The Democrat was one of 47 House members who co-sponsored one version of legislation that would allow short-term rentals to be phased out. One objective is to give counties more power after a U.S. judge in 2022 ruled Honolulu violated state law when it attempted to prohibit rentals for less than 90 days. Evslin said that decision left Hawaii's counties with limited tools, such as property taxes, to control vacation rentals.

 

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