Inside Maui: August Trends, Bill 9, Shifts, and Strategy
Maui's Short-Term Rental Dilemma
In the sun-drenched paradise of Maui, a profound transformation is underway. This change comes in the form of Bill 9, a piece of legislation that could redefine the landscape of the island's short-term rental market.
The Essence of Bill 9
At its core, Bill 9 seeks to end short-term rentals in A-1 and A-2 apartment-zoned areas. This primarily affects condos on the "Minatoya List," properties that have long operated under a different set of rules. The bill proposes a phased approach, with West Maui seeing these changes by January 1, 2029, and the rest of the island following suit by January 1, 2031.
The Human Element
For potential buyers, this shift could open up new opportunities. The market is already seeing an influx of condo options, creating a strong buyer's market. It's like a game of musical chairs, where suddenly, there are more chairs than players.
Sellers, particularly those with properties on the Minatoya List, face a difficult reality. The phasing out of STR rights is already significantly impact market values and pushing prices down.
The Road Ahead
As Maui stands at this crossroads, it's clear that the path forward is not yet set in stone. What has happened is that on July 24, the Housing and Land Use Committee passed the bill with a 6–3 vote. It now moves on to the full Maui County Council for final review, which is expected in August or September. That review will include at least two more readings and opportunities for public testimony.
There’s been mention of a “streamlined” rezoning process to help STR owners convert to hotel zoning but no real clarity yet on how that would work.
Legal action is also on the horizon, with attorneys preparing to represent affected condo owners. It's a reminder that in matters of community and economy, there are rarely simple solutions.
In Conclusion
The story of Bill 9 is more than just a tale of legislation and zoning. It's a narrative about change, about the delicate balance between progress and preservation, between the needs of visitors and residents. As Maui navigates these choppy waters, one thing is clear: the decisions made today will echo through the island's future for years to come.
For those with a stake in Maui's future - be it as a resident, a property owner, or simply as someone who loves the island - staying informed and engaged is not just important; it's essential. The story of Maui's short-term rentals is still being written, and every voice has the potential to shape its ending.
TL;DR Summary
Maui is facing a major transformation due to Bill 9, proposed legislation (which has NOT passed yet) that could end short-term rentals in A-1 and A-2 apartment zones, the "Minatoya List". This is opening up new condo options for 2nd home buyers but causing declining market values for sellers with Minatoya List properties. The bill passed the Housing and Land Use Committee and is moving to the full County Council for review, with legal action also expected if it passes.
Condo Complex Spotlight - Kamaole Sands
Kamaole Sands in South KiheiThis month I'm featuring Kamaole Sands, one of the most recognizable condo complexes in South Kihei. Situated across from Kamaole Beach Park III, this property combines resort-like amenities with a strong rental history, making it popular among both short-term investors and second-home buyers. With nearly 440 units across 10 buildings, it's a substantial property that could be significantly impacted by the proposed Bill 9. To provide a comprehensive understanding of Kamaole Sands in this context, a detailed 5-part video series has been created:
This series offers valuable insights for current owners, potential investors, or anyone interested in understanding the nuances of Maui's evolving short-term rental landscape.
Keep your eyes out for my future condo video series! | |
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Joshua’s August Seller Tips
In the spirit of Maui's ever-evolving real estate landscape, here are some practical tips to help sellers make the most of their property's potential:
Don't Skip the Closet Cleanout
Why it's important: Buyers will open every door. Overstuffed closets make your storage look smaller than it is. Even just clearing out half the clothes gives the impression of breathing room, helping buyers mentally move in.Replace Worn Welcome Mats and Door Hardware
Why it's important: First impressions matter, and buyers often linger at the front door while their agent unlocks the lockbox. A clean mat and polished hardware immediately signal care and pride in the home before they've even stepped inside.Show the Garage as a Usable Space
Why it's important: If your garage is packed wall-to-wall with boxes, tools, or leftover furniture, buyers will assume there's not enough storage inside the house. Clear a path, sweep it out, and stage it even if it's just a clean, empty space.Give Every Room a Clear Purpose
Why it's important: That half-office, half-storage room might work for you, but buyers feel uncertain when a space doesn't have a clear identity. Whether it's a guest bedroom, office, or workout area, define each room so buyers can easily picture its use.
These small changes can make a significant difference in how potential buyers perceive your property. Like the gentle trade winds that shape our island's landscape, these subtle adjustments can guide buyers towards seeing your home in its best light.
View the source data directly from the MLS:
PDF DOWNLOAD: Regional Data Sheet May PDF DOWNLOAD: July Activity
Market Trends
Have questions about the market? Reply to this email or call me at 808-824-3801
Local Spotlight – Reef’s Real Fruit Ice Cream
Tucked away in Kihei near the cove, Reef's Real Fruit Ice Cream is a food truck making waves with its New Zealand-style soft-serve. Blending real fruit into the ice cream, Reef's offers a refreshingly fruity treat without the sugar overload.
For those looking to elevate their ice cream experience, Reef's offers a variety of creative toppings and mix-ins, from classic Oreos to their unique "Billy Boy Crunch". You can fully customize your treat, choosing base, fruits, and toppings to create the perfect combination.
Reef's embodies the laid-back, quality-focused spirit of Maui. The spotless food truck, friendly staff, and focus on fresh ingredients create an unpretentious yet memorable experience. It's the perfect spot to cool down after a day at the beach, providing a satisfying treat without the frills or gimmicks often found in tourist-heavy areas.
Open daily from noon to 8:30 PM, Reef's is a Kihei treasure that's well worth seeking out.
Check them out at:
Address: 22 Alahele Pl, Kihei, HI 96753 (near The Cove)
Socials: reefsrealfruiticecream
Have something you'd like featured next month?
Reply to this email or send me a DM — I’d love to hear from you. And if you’re curious about what’s happening in the market, feel free to reach out anytime. — Josh
