Facing post-wildfire housing crisis, Maui lawmakers take aim at STRs

Across the country, concerns over short-term rentals are spurring debate and legislative action. But in Maui, where residents are facing a severe housing crisis after the 2023 Lahaina wildfire, there’s a greater sense of urgency. The island demonstrates an environment where a natural disaster can accelerate STR regulation. (Hawaii’s governor is so fed up with the number of STRs on the island that he dropped an expletive in a recent news conference.)  

Legislation that would empower Maui counties to ban STRs is headed to a vote in the Hawaii House and Senate next week. The bill (Senate Bill 2919) is riding tailwinds. It unanimously passed a joint conference committee and the state’s governor has promised to sign the legislation if it reaches his desk. The bill’s sponsor envisions converting short-term rentals into longer-term housing for residents left homeless after last year’s devastating fire. 

It’s a scenario that could play out in sections of other wildfire-prone states, such as California, particularly in residential areas where STRs sprout up to cater to seasonal tourists. Likewise, watch for states subject to hurricane season, if a large-scale storm wipes out residential housing options. 

But don’t forget: regulatory change won’t happen overnight on Maui. The Hawaii bill would take the first step toward stricter regulations by giving county officials the power to adopt new rules. But if signed into law, it could prompt legal challenges from STR owners who argue it could violate their property rights. 

• Maui isn’t the only seaside community imposing new restrictions on STRs. In Southern California, the Oceanside City Council has newly voted to approve a cap and other restrictions on vacation rentals. Locals argue their once-quiet residential neighborhoods are now plagued by “mini-hotels,” as they refer to the non-hosted STRs. One city councilmember voiced wanting the new rules to be expanded to include apartment buildings and condominiums. 

Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.

New and Proposed Regulations:

• Texas: A ban on all new permits for most STRs is kicking into gear in Plano (a Dallas suburb). (link)
• New York: Airbnbs and bed and breakfasts are being run out of town in Lewiston, but one Airbnb owner is pushing back. (link)
• Vermont: House lawmakers passed a slight tax increase of 1.5% on STR purchases. (The bill now goes to Vermont senators for consideration.) (link)
• Georgia: City officials in Madison are looking into opening the door to Airbnbs and other vacation STRs to operate in certain districts. (link)
• Rhode Island: The governor’s budget amendment extends a 5% hotel tax to STRs of whole homes, “closing a longstanding loophole.” (link) 

Other Noteworthy News:

• New York scramble: Locals and visitors are turning to black market rentals to get around the city's Airbnb crackdown. (link)
• Kansas deadline: So far only 13 STRs have registered to get a license after a first deadline passed in Wichita. (link) 
• Santa Barbara crack down: A city councilman and local residents speak to the city’s recent enforcement of STR rules. (link)