Lawmakers take aim at vacation rentals, after fire amplified Maui housing crisis

A single mother of two, Amy Chadwick spent years scrimping and saving to buy a house in the town of Lahaina on the Hawaiian island of Maui.

But after a devastating fire leveled Lahaina in August and reduced Chadwick's home to white dust, the cheapest rental she could find for her family and dogs cost $10,000 a month. Chadwick, a fine-dining server, moved to Florida where she could stretch her homeowners insurance dollars.

She's worried Maui's exorbitant rental prices, driven in part by vacation rentals that hog a limited housing supply, will hollow out her tight-knit town.

Most people in Lahaina work for hotels, restaurants and tour companies and can't afford $5,000 to $10,000 a month in rent, she said. “You're pushing out an entire community of service industry people. So no one's going to be able to support the tourism that you're putting ahead of your community,” Chadwick said by phone from her new home in Satellite Beach on Florida's Space Coast.

“Nothing good is going to come of it unless they take a serious stance, putting their foot down and really regulating these short-term rentals.”

The Aug. 8 wildfire killed 101 people and destroyed housing for 6,200 families, amplifying Maui's already acute housing shortage and laying bare the enormous presence of vacation rentals in Lahaina.

It reminded lawmakers that short-term rentals are an issue across Hawaii, prompting them to consider bills that would give counties the authority to phase them out.

Gov. Josh Green got so frustrated he blurted an expletive during a recent news conference. “This fire uncovered a clear truth, which is we have too many short-term rentals owned by too many individuals on the mainland and it is bt,” Green said. “And our people deserve housing, here.”

Vacation rentals are a popular alternative to hotels for those seeking kitchens, lower costs and opportunities to sample everyday island life.

Supporters say they boost tourism, the state's biggest employer. Critics revile them for inflating housing costs, upending neighborhoods and contributing to the forces pushing locals and Native Hawaiians to leave Hawaii for less expensive states.

This migration has become a major concern in Lahaina. The Council for Native Hawaiian Advancement, a nonprofit, estimates at least 1,500 households — or a quarter of those who lost their homes — have left since the August wildfire.