06/03/2024
I’m with Gary on this one and couldn’t have written it better myself.
If you live on Maui or own property here, PLEASE read this article written by Gary Mooers of Coldwell Banker Island Properties and WRITE TO COUNTY COUNCIL! We need more housing for locals on Maui. There’s absolutely no doubt about that. But the proposed legislation is NOT the way to go about it.
If this bill passes County Council, which I expect it will, and somehow makes it through the tsunami of lawsuits that will immediately commence, the lack of revenue will DESTROY Maui’s economy. It is simple math and logic.
“Our Mayor is Proposing a Terrible Mistake
Alice Lee, Central Maui Council Member, supports an economic impact study to determine what our county should expect if the mayor's plan to delete 7000 vacation rental units from the inventory of approximately 13,000 vacation rental condos on the island.
Already as a result of the mayor's announcement, many condo owners have decided not to stay around and see what happens. We have watched condo list prices drop, only to still sit on the market while investors wait and see. Currently there are 474 short term rental condos on the market, but only 38 of those are in escrow as of this writing, a percentage about one third of average.
Several of our own clients have called us to list their properties for sale because tourism has already begun to decline, causing their investments to produce below average results.
Before the bill can be presented to the Maui council, it needs to pass all three Planning Commissions (one for each Maui island). If it passes all three planning commissions, then it goes to the county council. Tom Cook, South Maui councilman, has voiced his opinion against the mayor's proposal. Word on the street is that at least four, possibly five council members oppose the bill.
In our last newsletter, we shared 13 reasons why Maui needs Transient Vacation Rentals (aka Short Term Rentals) for economic survival. But no actual costs were calculated as that is above my pay grade. Paul Brewbaker (former Senior Vice President and Chief Economist at Bank of Hawaii) wrote a White Paper in 2022, as this is not the first time such a proposal has been made.
Here are some of Paul's highlights:
-Maui County output would decrease $2.74 billion. Statewide total Hawaii output would decline by $3.25 billion.
-Maui County jobs would decrease by 14,126 (incorporating labor productivity growth). Total 16,681 jobs lost statewide.
-Maui County earnings would decline by $747.7 million, earnings loss of $885.3 million statewide.
-State tax revenues from Maui County would decline $137.3 million, $160.35 million in foregone state tax receipts when other islands are included.
-Maui would forego about $1.67 billion in tourism receipts, or 32.6 percent of Maui’s annual total.
Please ping me back if you'd like a copy of Brewbaker's White Paper.
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Virtually every oceanfront complex on Maui is vacation rentable, in apartment-zoned land. These small units were built for vacation rentals; they are too small for families to live in, have inadequate storage and parking for long-term residency, and maintenance fees are unaffordable for local residents.
Brewbaker's White Paper is now in the hands of every Maui council person. If the council attempts to move forward with this bill, knowing the economic impact it will have, those who vote yes need to be removed from office this November.
There is no perfect solution for Hawaii's housing shortage. But this dilemma is not unique to Maui. We are experiencing housing shortages all over the country. The answer is to issue more water meters, build more housing, streamline permits. The answer is not to seize property ownership rights.” -Gary Mooers
