The Future of Short-Term Rentals on Maui: Realtors Sound the Alarm

Maui's housing crisis collides with its tourism economy, sparking a significant debate over the future of short-term vacation rentals. Mayor Richard Bissen's proposal to phase out more than 7,000 short-term rental units has drawn fierce opposition from many in the real estate community. Local Realtors such as Tom Tezak, Gary Moore, Patric Ihu, and Kimberly Delmore have voiced strong concerns, warning that this move could devastate the island’s vacation rental market, causing unintended economic consequences.

Why Realtors Are Against the Proposal

Many realtors, property managers, and investors are sounding the alarm about the potential fallout from eliminating short-term rentals. Their main concerns center around two key points:

1. Short-Term Rentals as Economic Engines: The short-term rental market in Maui contributes billions of dollars to the local economy, directly supporting jobs, businesses, and property investments. Realtors like Tom Tezak and Gary Moore emphasize that short-term vacation rentals are not just a side business for a few homeowners—they are an essential part of Maui's tourism ecosystem. The elimination of this market could lead to a substantial drop in revenue for both the county and individual property owners.

2. Unsuitability of Properties for Long-Term Rentals: The argument extends beyond economic loss. According to Patric Ihu and Kimberly Delmore, many properties currently used as short-term rentals are not well-suited for long-term tenants. These properties, typically located in high-end areas like Kaanapali and Wailea, have steep operational costs, including maintenance fees, homeowners association dues, and high mortgage payments. As a result, the rental prices for these properties would far exceed what residents could afford.

   The realtors argue that even if these properties were converted to long-term rentals, the rent would need to be so high to cover costs that few, if any, local residents would be interested in renting them. Delmore points out that turning these homes into long-term rentals could leave them sitting empty for extended periods, causing further financial strain for property owners without solving the housing crisis for locals.

The Economic Impact: Jobs and Tax Revenue at Risk

The proposal to phase out short-term rentals comes at a potential cost of $6 billion in lost economic activity. The Realtors Association of Maui has reported that in 2023, short-term vacation rentals brought in over $91 million in tax revenue for the county and provided 7,800 jobs. Realtors like Tezak and Moore warn that losing this revenue could lead to job losses, hurting Maui’s working families even more than the current housing crisis does​

Moreover, turning these short-term rentals into long-term housing is not as simple as it sounds. Many of the units are luxury condos or homes located in tourist-centric areas, which would not be appealing or affordable to Maui’s local workforce. The rental rates necessary to cover property costs in these areas would be far above what most residents can pay, meaning the plan might not actually increase affordable housing options​(

The Risk of Undermining Property Investments

For realtors and investors like Ihu and Delmore, the issue concerns property rights and financial stability. Property owners who purchased homes for vacation rental income now face an uncertain future. They argue that they were encouraged by the county to invest in short-term rental properties and have paid higher taxes and fees based on this business model. Now, they feel blindsided by the possibility that their properties could become financially unsustainable if forced into the long-term rental market​

The Path Forward: Is There a Middle Ground?

While the proposal has ignited a heated debate, many within the real estate industry are urging for a balanced solution that addresses Maui’s housing needs without crippling the tourism industry. Some have suggested more flexible regulations, such as stricter caps on the number of short-term rentals in residential areas, or prioritizing the development of affordable housing units for residents rather than simply converting high-cost tourist properties into long-term rentals.

Maui stands at a critical crossroads. The decisions made now will determine the future of the island’s housing and tourism industries. As the conversation continues, realtors like Tezak, Moore, Ihu, and Delmore are committed to advocating for solutions that preserve both Maui’s economy and the interests of its residents.