Smith Team Real Estate Newsletter

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Issue 1210 | June 9th, 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 Beachfront Compound

409860-4d573d66-1842-4987-954f-b804fddcd82f

4640 & 4650 Makena Rd
Makena

$45.000M (FS)

An exceptionally rare opportunity to acquire two side-by-side oceanfront properties and create a private coastal compound in one of South Maui’s most coveted enclaves. Positioned approximately 40 feet above a pristine crescent-shaped white sand beach—naturally framed by a striking lava rock outcropping—this offering delivers a setting that cannot be duplicated under current coastal regulations. Behind a gated entry, the combined estate offers unmatched scale, privacy, and flexibility—ideal as a legacy family retreat, multi-generational compound, or secure oceanfront enclave.

Listing Details
Video Tour

Smith Team Market Update: Maui County Council Advances H-3 and H-4 Hotel Zoning

Aloha!

The Maui County Council has taken a significant step toward addressing one of the most important real estate issues facing Maui condo owners and investors. The Council reportedly approved Bill 88, creating new H-3 and H-4 Hotel Districts, by a strong majority vote. The measure now moves to Mayor Richard Bissen for final action. If signed, it will establish a new pathway for certain apartment-zoned vacation rental properties to continue operating legally as short-term rentals in the future.

What Does Bill 88 Do?

Bill 88 creates two new zoning classifications—H-3 and H-4—that closely mirror the existing A-1 and A-2 apartment zoning districts, with one major difference: transient vacation rentals would be an allowed use. The proposal was developed as part of the implementation strategy for Bill 9, the law that phases out vacation rentals in apartment-zoned properties beginning in West Maui in 2029 and countywide by 2031.

What It Does NOT Do

A common misunderstanding is that Bill 88 automatically preserves vacation rental rights for all Minatoya properties. It does not.

The new zoning districts simply create a framework. Individual condominium projects would still need to go through a separate rezoning process to be placed into H-3 or H-4 zoning. No property is automatically rezoned by Bill 88.

Why This Matters

For many owners, this is the most encouraging development since Bill 9 became law. Without H-3 and H-4 zoning, there was no clear long-term pathway for many apartment-zoned vacation rental properties. The new districts provide a potential solution that recognizes how many of these properties have operated for decades—as visitor accommodations rather than workforce housing.

The Temporary Investigative Group (TIG) identified approximately 4,500 units that may be better suited for continued visitor use and recommended creation of the H-3 and H-4 districts as a balanced approach.

What Happens Next?

Assuming the bill receives final approval and is signed by the Mayor, attention will shift to the individual condominium complexes seeking rezoning. Those decisions will likely be made on a property-by-property basis and will involve public hearings and County review.

While the creation of H-3 and H-4 does not guarantee any particular property's future, it represents a major shift toward a more practical and balanced solution—one that attempts to address Maui's housing needs while recognizing the economic importance of visitor accommodations.

Our Take

The H-3 and H-4 proposal acknowledges a reality that many Maui residents, property owners, and visitors already understand: some properties were designed and have operated successfully as visitor accommodations for decades. Creating a zoning category that reflects their actual use may ultimately prove to be a more effective solution than trying to fit every property into a single housing policy.

We will continue monitoring the Mayor's action on Bill 88 and the subsequent rezoning process, which will likely have a significant impact on condo values, vacation rental investments, and Maui's housing landscape for years to come.

Mahalo Nui Loa,

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

The Smith Team

P.S. Costliest repairs to Lahaina Harbor still ahead as dredging gets underway

Market Watch

	Active	Pending	Sold	Change
Homes	449 (387)	100 (72)	724 (527)	-1
Condos	930 (329)	121 (26)	711 (186)	-19
Land	200 (77)	16 (2)	142 (33)	0
Total	1579 (793)	237 (100)	1577 (746)	-20

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

Market Statistics

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

Bank-owned
Short sale

Homes Over $1M

409846-9d7440c6-60a9-4547-9c11-7e8eb0087b01

239 Keonekai Rd

Kihei

$1.200M (FS)

Private setting at the end of a steep driveway featuring a 3-bedroom, 2-bath main home with 2 car attached garage, and an attached, furnished 1-bedroom, 1-bath ohana. The ohana offers a private entrance, dedicated carport, and its own covered lanai, making it ideal for extended family, guests, or rental income.