Smith Team Real Estate Newsletter

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Issue 1217 | July 28th, 2026

Aloha ,

In this newsletter:

Market Update Market Watch Homes
Over $1M Homes
Under $1M Vacation Condos
Over $1M Vacation Condos
Under $1M Residential Condos
Over $1M Residential Condos
Under $1M Vacant Land

Ultimate Coastal Haven

4851 Lower Honoapiilani Rd
Kahana

$12M (FS)

This contemporary Polynesian-style oceanfront gated estate is architecturally designed to maximize ocean views. 4851 Lower Honoapiilani Road is built with the highest quality, high-tech materials, and finishes. 10-foot motorized pocket doors create seamless indoor-outdoor living for both entertainment and relaxation. The lower level features a great room, dining area, spectacular kitchen, 2 bedroom suites, an additional bedroom or home office, media room, fabulous infinity pool, spa, and water features.

Listing Details
Video Tour

Maui Council Advances New Hotel Zoning for Over 2,000 Vacation Rentals

Aloha!

In a major development for Maui’s real estate landscape, the Maui County Council voted 7-1 to advance two key resolutions—Resolutions 26-110 and 26-111—sending them to the Maui Planning Commission for formal review.

These measures could permanently reclassify roughly 2,056 apartment-district vacation rental units into the County’s new H-3 and H-4 hotel zoning designations, where short-term rental operations are explicitly permitted.

If you own, manage, or are looking to buy a condo on Maui, here is what this critical step means for you.

What Is Being Proposed?

Under Ordinance 5909 (commonly known as Bill 9), Maui County established a framework to phase out short-term vacation rentals operating in A-1 and A-2 apartment districts, aiming to return those properties to long-term residential stock.

However, Resolutions 26-110 and 26-111 create a clear legislative pathway for specific categories of apartment-zoned properties to transition into permanent hotel zoning instead:

Hotel-Style Properties (Resolution 26-111): Covers properties that operate like traditional hotels, featuring 24-hour front desks, property-wide housekeeping, and multi-member operating staff (e.g., complexes like Luana Kai).

Special Category Properties (Resolution 26-110): Covers timeshare complexes, leaseholds, single-ownership properties, and properties operating with specific variance status (such as Kāʻanapali Royal and Kauhale Makai).

By referring these properties to the Planning Commission, the Council is setting the stage for individual property reviews to determine whether hotel zoning is appropriate.

Differing Perspectives Across the Island

This decision sits at the heart of Maui’s ongoing balance between supporting local housing needs and maintaining property rights and tourism infrastructure.

Housing Advocates & OHA: Opponents, including representatives from the Office of Hawaiian Affairs (OHA), urged caution. They noted that removing over 2,000 units from the Bill 9 phase-out pipeline reduces potential inventory that could otherwise transition into local residential ownership or long-term rentals.

Council & Property Advocates: Council members who supported the referral emphasized that many of these specific complexes were built, designed, and operated as resort properties for decades. Providing a path to H-3 and H-4 zoning gives clarity to owners and stabilizes communities that rely on hotel-style amenities and employment.

What Happens Next?

It is important to remember that this vote is a referral, not a final reclassification.

Planning Commission Review: The resolutions now go to the Maui Planning Commission, where commissioners will review the properties and gather public testimony.

Council Return: Once the Planning Commission completes its evaluation and recommendations, the measures will return to the County Council for final voting.

What This Means for Buyers and Sellers Today

For condo owners and prospective buyers, this news signals progress toward long-awaited regulatory clarity.

If You Own in an Impacted Complex: Keeping a close eye on the Planning Commission’s schedule and staying engaged in the public comment process will be essential as individual property evaluations move forward.

If You Are Shopping for a Maui Condo: Properties transitioning toward hotel zoning offer a clearer long-term outlook for vacation-rental use. Working with a team that stays on top of weekly county updates ensures you make well-informed choices.

The Bottom Line: Navigating Maui’s evolving zoning laws requires hyper-local expertise and up-to-the-minute market knowledge. No matter where you are in the decision-making process, The Smith Team is here to guide with your real estate journey. Reach out to us today to discuss how these legislative updates affect your specific property or search.

Mahalo Nui Loa,

Ken Smith R(S), Melissa Smith R(B), and Gregory P Smith R(B)

The Smith Team

P.S. Tropical Storm Fausto continues on path north of Hawaiian Islands through late Wednesday

Market Watch

	Active	Pending	Sold	Change
Homes	474 (411)	116 (77)	715 (526)	+3
Condos	899 (312)	113 (17)	766 (193)	+4
Land	209 (76)	18 (3)	137 (33)	0
Total	1582 (799)	247 (97)	1618 (752)	+7

1. Numbers in parentheses reflect listings over $1M
2. Sold listings are for the previous 12 months
3. Change is the increase/decrease from the previous week

January 2026
February 2026
March 2026
April
May
June

Market Statistics

Updated list of all bank-owned and short-sale properties:

Bank-owned
Short sale

Homes Over $1M

410362-2c9d755f-88eb-4e78-8ac6-a294e0b6f287

2806 Iolani St

Pukalani

$1.450M (FS)

Exceptional multi-generational living or investment opportunity in the heart of Pukalani! Situated on a generous 10,000 sq. ft. lot overlooking the 13th hole of the Pukalani Golf Course, this versatile property offers multiple living spaces, beautiful golf course views, and energy-efficient upgrades. The main residence features a beautifully remodeled single-level 3-bedroom, 2-bath home (updated in 2026) with modern finishes and comfortable living spaces.