Maui Real Estate: 2025 Vacation Rental Ban Update — Full List of Exempt & Non-Exempt Condos, County Report Reveals Winners and Losers

Maui, HI — October 14, 2025. After months of anticipation, Maui County has released the Temporary Investigative Group (TIG) Report — a defining document that outlines how officials plan to phase out short-term rentals (STRs) in Apartment-zoned districts. The report reveals, for the first time, which condominium projects are proposed for exemption and which may lose STR eligibility altogether.

Important: This report is a recommendation, not yet law. The County Council will now deliberate, amend, and eventually vote on the TIG findings before any phase-out becomes official.

Summary of the TIG Findings

The TIG report identifies roughly 7,000 units across more than 100 Apartment-zoned condominium properties currently operating as short-term rentals. These units contribute an estimated $1.7 billion annually in visitor spending and account for about 15% of Maui’s total lodging inventory.

According to the TIG, these rentals have played a key role in the island’s economy — but have also intensified housing scarcity for residents. The report recommends limiting STRs primarily to areas already designated as visitor-oriented, such as Wailea, Kaanapali, and Kapalua, while transitioning most Apartment-zoned STRs back into the local housing market.

The County’s stated goals are to: (1) increase housing availability for Maui residents, (2) maintain tax revenue from legal visitor accommodations, and (3) balance tourism with community sustainability.

Which Condos Are Proposed for Exemption

The TIG proposes that approximately 53 Apartment-zoned condo projects be exempt from the short-term rental phase-out. These properties — concentrated in Kaanapali, Kapalua, Wailea, and Maalaea — are expected to be rezoned into new Hotel (H-3 or H-4) districts, preserving their ability to operate as vacation rentals.

Exempted Apartment-Zoned Condos (Proposed) — Island of Maui

Maui condominiums proposed as Exempt from the phase-out.

What the second list means: The next table lists Apartment-zoned properties not proposed for exemption and, under the TIG recommendation, expected to lose STR eligibility unless future legislation provides another path to compliance.

Not Exempt (Apartment-Zoned VRs Expected to Lose STR Eligibility) — Island of Maui

Clarification on Zoning and Scope

This proposed exemption list does not include other zoning classifications already permitted for short-term rentals, such as Hotel (H-1, H-2), Residential (R-2, R-3), Agricultural (AG), Business (B-2), Planned Unit Development (PUD), Open Space (OS-2), or Neighborhood Business Country Town (NBCID). Those districts remain unaffected by the proposed Apartment zoning restrictions. Here is a complete list of all the vacation rental condos that were already exempted and should NOT lose their legal vacation rental status.

For reference, you can view Maui County's Version of a "complete list" of all Maui County condominiums here.Market Reaction: Data Meets RealityFor investors, the TIG report finally provides clarity after a year of rumor and speculation. But it also draws a sharp line across the market. “Exempt” projects will likely maintain stronger pricing and liquidity, while “non-exempt” buildings could see downward pressure as financing and buyer demand adjust to new realities.Developers and analysts already expect a market bifurcation: resilient STR inventory versus repositioned residential stock. Appraisers are preparing to incorporate zoning designations into valuation models, and some lenders are signaling that loan terms could vary depending on exemption status.The TIG itself acknowledges the tradeoff: while reclaiming housing for residents is a priority, the shift could temporarily impact small businesses, property managers, and tourism-related employment. The report urges the Council to phase in changes gradually to prevent “economic whiplash.”

Community Response — Airbnb “Maui Pau Hana” Event

Amid growing public concern, Airbnb is hosting a Pau Hana community meetup inviting everyone affected — not just condo owners — to share perspectives on how the County’s proposal could reshape Maui’s economy and housing landscape. Business owners, hospitality workers, and service providers are all encouraged to attend.Event Details
Date: Wednesday, October 15, 2025
Time: 6:30 PM – 8:30 PM HST
Location: Maui Brewing Company, 605 Lipoa Parkway, Kihei, HI 96753Attendees can RSVP or sign up for updates at mauitvulegislation.splashthat.com. The gathering aims to unify voices from across Maui’s tourism and housing sectors in open discussion.For updates, photos, and community coverage, follow Maui Pau Hana following the event.

Bottom Line

The TIG report signals a pivotal shift in Maui’s real estate and tourism economy. While it’s not yet law, it offers the clearest blueprint to date for how the County intends to reshape Apartment-zoned short-term rentals. For property owners and investors, the message is simple: know your zoning, track the legislation, and plan accordingly.As the Council prepares for public hearings, expect vigorous debate. Maui is entering a new era where the balance between housing supply and visitor demand will define not just property values, but the very character of island life.This report is not yet law. Final decisions will follow County Council review and a public vote in the coming months.Final Analysis: A Flawed AssumptionWhile the TIG report outlines a path toward reclaiming housing for residents, the underlying premise that eliminating short-term rentals will suddenly create “affordable housing” is questionable at best. The reality on the ground paints a far more complicated picture.Right now, over a thousand long-term rentals remain available on the market, many sitting for weeks or months without tenants. At the same time, hundreds of homes and condos are listed for sale, with average days on market continuing to rise. The data suggests not a shortage of supply — but a lack of affordability driven by broader economic forces, interest rates, stagnant wages and a failing local economy thanks to the local and state governemnt policies pushing out vital tourism dollars whie the bureaucrats push special interest payoffs into their own pockets.....via the Hotel Lobby.Moreover, when a property loses its short-term rental designation, it doesn’t automatically become affordable housing. There is no mechanism forcing owners to sell or rent at reduced prices. In most cases, owners will simply hold their properties, leaving them vacant or using them seasonally by friends, family and co-workers. The assumption that these units will suddenly transform into long-term homes for local families is built on the shifting sands of Maui’s own beaches — not on measurable market behavior or just plain common sense.Finally, the legal implications cannot be ignored. Should this ordinance pass, it would likely trigger widespread litigation from individual condominium associations, homeowners, and investors across the island. That wave of lawsuits would in turn cause mortgage lenders to freeze lending to any property entangled in active litigation, effectively blacklisting these complexes from financing altogether. The result could be market paralysis — with property values, lending, and liquidity all caught in legal limbo for years. Which is likely their well thought-out plan from the onset.Let’s call it what it is. This so-called “phase-out” isn’t about housing — it’s about control. The rhetoric may sound noble to the uninformed, but the reality is a disaster in the making. The very policy that claims to protect local families will instead cripple the backbone of Maui’s economy, destroy livelihoods, and divide the very community it pretends to save!And what was the problem again? Not vacation rentals. Not visitors. The problem has always been that the tourism and hotel industries refuse to pay a living wage while government squanders the taxes those workers, tourists and condo owners generate. The people who actually keep this island alive — the hosts, cleaners, tradesmen, and small property owners — are being turned into scapegoats for decades of Maui County fiscal mismanagement!Meanwhile, those who built their lives around Maui’s visitor economy are being punished for doing nothing more than participating in the system the County itself created through Mayor Elmer Cravalho. This is planned chaos at its finest — orchestrated confusion designed to distract from the real culprits: profit-hoarding corporations and bureaucrats drunk on power. Well played, blue rulers. But know this — we see you.The people of Maui are not asleep. We are not divided. We are rising — together — with clarity, courage, and conviction. Because this island was built by hard-working families, not political elites and souless billionaires. And when the truth is finally spoken loud enough, and the next election comes and goes, you will be gone and your plans will not succeed!

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Eric West | Real Broker, LLC
West Maui Team — Your trusted resource for Maui real estate.
(808) 298-2030 | hawaiisbest1@gmail.com

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