Maui Housing Hui highlights impact of short term rentals on rental prices

Renters' issues took center stage at the Maui County Housing and Land Use Committee meeting on June 9, 2025, as advocates highlighted the urgent need for action against rising rental prices linked to short-term rental (STR) saturation. A representative from the Maui Housing Hui presented a compelling cost-benefit analysis, revealing a direct correlation between the proliferation of STRs and increased rental costs, drawing parallels with cities like San Francisco and New York.

The analysis indicated that in areas with high STR saturation, such as Brooklyn, rental prices surged by as much as 44%. This trend is alarming for Maui, where the community faces a significant affordability crisis. The representative emphasized that addressing this issue requires a substantial investment—estimated at $25 million per district—to alleviate the burden on renters, particularly those earning 70% of the area median income (AMI) or below, who are most at risk of becoming unhoused.

The discussion underscored the critical impact of STRs on the long-term rental market, as many properties previously available for long-term leases are being converted into STRs. This shift not only reduces the available inventory for renters but also exacerbates gentrification, disproportionately affecting the most vulnerable populations.

In response to these findings, the committee expressed support for Bill 9, which aims to increase the availability of long-term rental units. Advocates argued that without stabilizing rental prices, the community will continue to face severe housing challenges. The meeting concluded with a call for immediate action to protect renters and ensure housing stability in Maui County.