August 2026 Market Update: Navigating Maui’s STR Landscape After Bill 9 and Bill 88

As we move through the second half of 2026, Maui’s condominium market is experiencing a historic transition. With the phased elimination of apartment-zoned short-term rentals initiated by Bill 9 late last year, and the subsequent reprieve pathway introduced by Bill 88 this summer, the market has fractured into distinct tiers based purely on zoning status.

For buyers, sellers, and investors, relying on outdated information from even a few months ago is a critical risk. Here is exactly where the legislation and market data stand this month, and what it means for your real estate strategy.

The Foundation: Bill 9 Phase-Out Deadlines

Signed into law by Mayor Richard Bissen in December 2025, Bill 9 (Ordinance No. 5909) officially targets the roughly 7,000 apartment-zoned condominiums on the historic "Minatoya List". Unless a property secures rezoning, short-term vacation rental (STR) operations must permanently cease on the following schedule:

• West Maui (Lahaina, Kaanapali, Kahana, Kapalua): Operations must stop by January 1, 2029.
• South Maui & Rest of County (Kihei, Wailea, Maalaea): Operations must stop by January 1, 2031.
• Non-Compliance Penalties: The county has established an initial fine of $20,000, plus an additional $10,000 per day for continued violations.

The Nuance of Bill 88: A Path to Reprieve, Not a Guarantee

On June 19, 2026, the Maui County Council voted 7-2 to pass Bill 88 (Ordinance 6008). This critical legislation created two new hotel-zoning classifications—H-3 and H-4—designed to allow certain Minatoya List condos to maintain their short-term rental status legally. However, buyers and sellers must understand the fine print:

Bill 88 is NOT an Automatic Rezoning: Mayor Bissen and the council were explicit: Bill 88 does not unilaterally reclassify any properties. Each individual condo association must actively apply, undergo Maui Planning Commission review, and secure a final building-by-building County Council approval to transition to H-3 or H-4 zoning. Roughly 4,500 units belong to buildings identified by the council's Temporary Investigative Group (TIG) as potential candidates for this rezoning path.

Mid-2026 Market Dynamics: The Great Zoning Divide

These legislative shifts have triggered a massive divergence in property values across Maui. While the single-family home market remains robust, the condominium market is telling two completely different stories:

• Apartment-Zoned Condos (The Minatoya List): Directly affected by the phase-out, prices in these complexes have taken the brunt of the correction, with values down close to 50% in many complexes compared to their peak. For buyers seeking a primary residence, a long-term rental investment, or a 3-to-5-year hybrid STR pivot plan, this represents a heavily discounted entry point into Maui real estate.
• Hotel-Zoned & Business-Zoned Condos: Completely insulated from Bill 9, properties with legacy resort zoning (like Wailea Elua) have held strong, experiencing little to no price decline. These complexes command a premium as risk-averse investors flock to regulatory certainty.

Strategic Moves for Late 2026

For Buyers: Verify, Then Negotiate. Never purchase based on a current Airbnb listing. You must check a property's Tax Map Key (TMK) and review active council resolutions to confirm its exact zoning trajectory. If you are buying in an apartment-zoned complex that is not pursuing H-3/H-4 status, leverage the current price compressions to secure a steep discount for a future long-term rental or personal island home.

For Sellers: Define Your Holding Tolerance. If your building is named on an active council resolution pursuing Bill 88 rezoning, holding out for final approval could preserve significant value for your unit. However, if your association lacks the capital, unity, or historical eligibility to apply, pricing competitively today is vital before the 2029 and 2031 deadlines draw closer.

Frequently Asked Questions (Updated August 2026)