Bill 9 Update: Maui's Short-Term Rental Ban Reaches a Critical Turn

As a follower of this podcast and blog, you're already familiar with the Mayor's Bill 9 - the proposal to phase out transient vacation rental use (TVRs) in apartment-zoned districts across Maui. After months of delays, political maneuvering, and a mountain of public testimony, we're finally reaching a critical point: according to the most recent Maui County press release, the first reading of Bill 9 is now scheduled for December 1.

Complicating the already-complex process, Council member Tasha Kama - chair of the Housing and Land Use Committee and a key vote - passed away in October after a sudden illness. Kama had previously voted against advancing Bill 9 out of committee. Council members had until November 25 to appoint her replacement. Before her passing, Kama identified a preferred successor; we'll be watching closely to see whether the Council respects her choice or goes in a different direction.

Meanwhile, the Temporary Investigative Group (TIG) submitted its long-awaited report. Of the roughy 7,000 units originally included in Bill 9, the TIG recommended that approximately 4,500 should be excluded and reclassified to Hotel zoning, reflecting their long-standing and legally established short-term rental use.

Criteria for exclusion included:

  • Presence of timeshare units
  • Leasehold status
  • Partial existing Hotel zoning
  • Location within the sea level rise inundation area
  • Location in a resort area

Owners who feel their complex should have been excluded may apply for the proposed new H3/H4 Hotel zoning.

The TIG also found that Maui County currently collects just under $28 million annually from STR-classified units. If those units are reclassified into lower-tax categories, annual revenue could drop to as low as $4.2 million.

If the Council adopts portions of the TIG's recommendations - likely through amendments - Bill 9 appears headed toward  passage, through not in its original form. The coming weeks will bring amendments, intense debate, and plenty of uncertainty for property owners and investors.

Tourism Update: Signs of Recovery, But Some Numbers Raise Eyebrows

Tourism on Maui continues its slow, steady climb. For the first nine months of 2025, just under 1.9 million visitors came to Maui - an increase of about 8.5% compared to the same period last year. Visitor spending is up as well, totaling roughly $4.35 billion, a 12% bump over 2024. September alone saw an 11.4% year-over-year increase in arrivals and nearly a 20% jump in visitor spending. 

Comparing lodging types:

  • Hotels: ADR around $578, occupancy - 71%
  • Vacation rentals/condos: ADR around $490, occupancy - 64%
  • Some STR data shows ADRs in the $350-$400 range with occupancy closer to 50%

These ADR figures seem high, so here's the question to owners: Are you actually seeing ADRs anywhere near these levels?

Condo Market Update

Condo sales saw a significant rebound in October after one of the worst months in a decade this past September. It's encouraging to see activity pick up, especially during what is typically one of the slowest periods of the year.

Inventory peaked in April at 900 units and has now declined for six straight months, ending October at 833 units - still 13.5 months of inventory, firmly a buyer's market. Pending sales rose to 91, the highest since March.

Median selling prices dropped from $650,000 to $614,000 - down 6% month-over-month and roughly 31% year-over-year. Maui condos are on sale, and buyers are taking notice. Average selling price dropped by $27,000 year-over-year. 

Sellers appear to be adapting: median asking price fell to $799,000, marking the third straight month of decline.

Single-Family Home Update

Single-family home sales rose to 63 in October, up from 56 in September, though still down 7% year-over-year.

Kihei led with 16 sales, followed by Wailuku (14) and Haiku (8). Median selling prices ranged from $1.14 million in Wailuku to $1.2 million in Haiku.

Inventory remains stable at 436 active listings. Pending sales dipped slightly to 236. Median selling price dropped to $1,234,000 - below the $1.3M range seen most of the yar. Lower mortgage rates may also be helping bring buyers back into the market. 

Average selling price fell from $1.76M to $1.52M, suggesting less activity at the high end. Three homes sold above $4M this month.

Sellers have responded by lowering their expectations: median asking price has dropped from $1,774,000 in August to $1,675,000 in October. 

Closing Thoughts

As we head into the final stretch of 2025, Maui's real estate landscape is showing signs of movement - not a surge, but a subtle shift worth watching. Bill 9 is finally approaching its first reading on December 1, and while amendments are likely, the next few weeks will tell us a lot about Maui's long-term housing and vacation-rental future.

Tourism is improving, but we're still well below 2019 levels. Published ADRs look high, and I'm genuinely curious to hear what actual owners are experiencing.

Condos are showing early signs of stabilization, with lower prices and rising activity creating a potential buying window. The single-family market remains steady, helped by lower rates and consistent inventory.

If you have questions about your area, your property value, or how Bill 9 may impact you or your condo community, reach out anytime. We're here as a resource for the Lahaina and Maui community - whether you're ready to make a move or simply trying to make sense of the headlines. 

From the greatest island on Earth, I'm Lahaina Lee - saying ALOOHA.

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaGroupMaui.com.  If you can’t find what you’re looking for there, send us an email to lee@alohapotts.com, and we’ll do our best to get an answer for you.  As we get more requests for information, we’ll add new sections to the website, newsletter or both.

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About Aloha Group Maui

 

Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. Our team consists of talented professionals; Cheri Miller R(S), Anthony Freda R(S), Kathy Becklin, R(B), Becky Sparling, R(S), and Tony Brown R(B). We are businesspeople, and we treat our clients with the same care and service attitude that we would like to receive when we do business.  We are in business for pleasure and profit.  We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit).  Real estate can be highly speculative, and profits are never guaranteed.  So if you are buying property in Maui, it’s a good idea to surround yourself with a professional team.

 

Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization.  Lee and Barbara are both licensed under

Keller Williams Realty Maui.