Hawaii lawmakers take aim at vacation rentals after Lahaina wildfire amplifies Maui housing crisis

HONOLULU (AP) — Amy Chadwick spent years scrimping and saving as a single mother of two 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 and her now-husband could find for their 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 out 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 b———t,” 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.

The blaze burned single family homes and apartments in and around downtown, which is the core of Lahaina's residential housing. An analysis by the University of Hawaii Economic Research Organization found a relatively low 7.5% of units there were vacation rentals as of February 2023.

Lahaina neighborhoods spared by the fire have a much higher ratio of vacation rentals: About half the housing in Napili, about 7 miles (11 kilometers) north of the burn zone, is short-term rentals.

Napili is where Chadwick thought she found a place to buy when she first went house hunting in 2016. But a Canadian woman secured it with a cash offer and turned it into a vacation rental.

Also outside the burn zone are dozens of short-term rental condominium buildings erected decades ago on land zoned for apartments.

In 1992, Maui County explicitly allowed owners in these buildings to rent units for less than 180 days at a time even without short-term rental permits. Since November, activists have occupied the beach in front of Lahaina's biggest hotels to push the mayor or governor to use their emergency powers to revoke this exemption.

Money is a powerful incentive for owners to rent to travelers: a 2016 report prepared for the state found a Honolulu vacation rental generates 3.5 times the revenue of a long-term rental.

State Rep. Luke Evslin, the Housing Committee chair, said Maui and Kauai counties have suffered net losses of residential housing in recent years thanks to a paucity of new construction and the conversion of so many homes to short-term rentals.

“Every alarm bell we have should be ringing when we’re literally going backwards in our goal to provide more housing in Hawaii,” he said.

In his own Kauai district, Evslin sees people leaving, becoming homeless or working three jobs to stay afloat.

The Democrat was one of 47 House members who co-sponsored one version of legislation that would allow short-term rentals to be phased out. One objective is to give counties more power after a U.S. judge ruled in 2022 that Honolulu violated state law when it attempted to prohibit rentals for less than 90 days. Evslin said that decision left Hawaii's counties with limited tools, such as property taxes, to control vacation rentals.

Lawmakers also considered trying to boost Hawaii's housing supply by forcing counties to allow more houses to be built on individual lots. But they watered down the measure after local officials said they were already exploring the idea.

Short-term rental owners said a phase-out would violate their property rights and take their property without compensation, potentially pushing them into foreclosure. Some predicted legal challenges.

Alicia Humiston, president of the Rentals by Owner Awareness Association, said some areas in West Maui were designed for travelers and therefore lack schools and other infrastructure families need.

“This area in West Maui that is sort of like this resort apartment zone — that’s all north of Lahaina — it was never built to be local living,” Humiston said.

One housing advocate argues that just because a community allowed vacation rentals decades ago doesn't mean it still needs to now.

"We are not living in the 1990s or in the 1970s,” said Sterling Higa, executive director of Housing Hawaii's Future. Counties “should have the authority to look at existing laws and reform them as necessary to provide for the public good.”

Courtney Lazo, a real estate agent who is part of Lahaina Strong, the group occupying Kaanapali Beach, said tourists can stay in her hometown now but many locals can't.

“How do you expect a community to recover and heal and move forward when the people who make Lahaina, Lahaina, aren’t even there anymore?” she said at a recent news conference as her voice quivered. “They’re moving away.”

This image provided by Amy Chadwick shows her neighborhood after a wildfire destroyed her home in Lahaina, on the Hawaiian island of Maui. Chadwick moved to Florida where she could stretch her homeowners insurance dollars. She's worried Maui's exorbitant rental prices, which she blames in part on vacation rentals hogging up limited housing supply, will hollow out her tight-knit town by similarly forcing others to leave. (Amy Chadwick via AP)

This 2023 image provided by Amy Chadwick shows where her home used to stand after a wildfire in Lahaina, on the Hawaiian island of Maui. Chadwick moved to Florida where she could stretch her homeowners insurance dollars. She's worried Maui's exorbitant rental prices, which she blames in part on vacation rentals hogging up limited housing supply, will hollow out her tight-knit town by similarly forcing others to leave. (Amy Chadwick via AP)

FILE - The Rev. Ai Hironaka, resident minister of the Lahaina Hongwanji Mission, walks in the parking lot as he visits his temple and residence destroyed by wildfire, Thursday, Dec. 7, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Lindsey Wasson, File)

FILE - Hawaii Gov. Josh Green, center, points to damage as he speaks with Federal Emergency Management Agency Administrator Deanne Criswell during a tour of wildfire damage, Saturday, Aug. 12, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Rick Bowmer, File)

FILE - Carlos Lamas looks out to the sea from his spot at the "Fish-in" protest on, Friday, Dec. 1, 2023, in Lahaina, Hawaii. Lahaina Strong has set up a "Fish-in" to protest living accommodations for those displaced by the Aug. 8, 2023 wildfire, the deadliest U.S. wildfire in more than a century. (AP Photo/Ty O'Neil, File)

FILE - People walk by a tent with a "Lahaina Strong" flag, Wednesday, Dec. 6, 2023, at Whalers Village on Kaanapali Beach in Lahaina, Hawaii, as a group of wildfire survivors camps on the resort beach to protest and raise awareness for better long-term housing options for those displaced. (AP Photo/Lindsey Wasson, File)

FILE - Signs asking people to respect locals and that "Lahaina is not for sale" are seen on the side of the Lahaina Bypass, Wednesday, Dec. 6, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Lindsey Wasson, File)

FILE - Naldo Valentine, who lost his home to the Lahaina wildfire, puts up a light as darkness falls at a housing protest on Kaanapali Beach Wednesday, Dec. 6, 2023, in Lahaina, Hawaii. A group of survivors were camping on the resort beach to protest and raise awareness for better long-term housing options for those displaced. (AP Photo/Lindsey Wasson, File)

FILE -A man sets up an umbrella in front of a Lahaina Strong informational sign, Wednesday, Dec. 6, 2023, Kaanapali Beach in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Lindsey Wasson, File)

FILE - Burned cars and propane tanks with markings on them sit outside a house destroyed by wildfire, Friday, Dec. 8, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Lindsey Wasson, File)

This 2021 image provided by Amy Chadwick shows her home in Lahaina, on the Hawaiian island of Maui. The home was destroyed in the Lahaina wildfire. Chadwick moved to Florida where she could stretch her homeowners insurance dollars. She's worried Maui's exorbitant rental prices, which she blames in part on vacation rentals hogging up limited housing supply, will hollow out her tight-knit town by similarly forcing others to leave. (Amy Chadwick via AP)

Amy Chadwick poses her current home Monday, April 8, 2024, in Satellite Beach, Fla. Chadwick, a victim of the fires in Hawaii moved to Florida where she could stretch her homeowners insurance dollars while she waits for her lot to be cleared and for permission to rebuild. (AP Photo/John Raoux)

Amy Chadwick poses outside her current home Monday, April 8, 2024, in Satellite Beach, Fla. Chadwick, a victim of the fires in Hawaii, moved to Florida where she could stretch her homeowners insurance dollars while she waits for her lot to be cleared and for permission to rebuild. (AP Photo/John Raoux)

Amy Chadwick poses at her current home with her pets, Monday, April 8, 2024, in Satellite Beach, Fla. Chadwick, a victim of the fires in Hawaii, moved to Florida where she could stretch her homeowners insurance dollars while she waits for her lot to be cleared and for permission to rebuild. (AP Photo/John Raoux)

This July 2023 image provided by Amy Chadwick shows the backyard of her home in Lahaina, on the Hawaiian island of Maui. The home was destroyed in the Lahaina wildfire. Chadwick moved to Florida where she could stretch her homeowners insurance dollars. She's worried Maui's exorbitant rental prices, which she blames in part on vacation rentals hogging up limited housing supply, will hollow out her tight-knit town by similarly forcing others to leave. (Amy Chadwick via AP)

Amy Chadwick, stands by map of Hawaii at her current home Monday, April 8, 2024, in Satellite Beach, Fla. Chadwick, a victim of the fires in Hawaii moved to Florida where she could stretch her homeowners insurance dollars while she waits for her lot to be cleared and for permission to rebuild. (AP Photo/John Raoux)

CHICAGO (AP) — Clarke Schmidt and Nestor Cortes combined on a four-hitter, and the New York Yankees clinched their 32nd straight winning season by blanking the Chicago Cubs 2-0 on Saturday.

Schmidt pitched 4 2/3 innings of four-hit ball in his first big league game since May 26. Cortes (9-10) closed it out in his first relief appearance since 2021.

Coupled with Baltimore's 7-1 loss to Tampa Bay, New York moved back into first in the AL East. The Yankees (82-60) lead the Orioles by a half-game.

Cortes admitted he was upset when he learned he was going to pitch in relief.

“I’m never going to back down from a challenge,” Cortes said. “I’m never going to leave my teammates out to dry. You’re always going to get my best effort no matter if I’m happy or not. That’s what I did today. I came out there and proved I can be put in any situation. From here on out, if that’s my role, I’ll accept it.”

Schmidt had been sidelined by a right lat strain. He threw 75 pitches, 44 for strikes.

"I felt like I still had a lot of strength and I wasn’t fatiguing at all,” Schmidt said.

New York posted its second straight shutout to secure its first series win since it took two of three against Colorado from Aug. 23-25. The 32 straight seasons with a winning record is the second-longest such period in major league history, trailing a run of 39 consecutive seasons for the Yankees from 1926-64.

Chicago (72-70) has lost four of five on a crucial homestand as it tries to rally in the race for the third NL wild card. It beat Pittsburgh 12-0 on Wednesday, but it has managed a total of three other runs in its last five games, getting shut out three times.

“We feel like we have a good enough ballclub to be in the playoffs and in the picture, but we’re going to have to play a little bit better and keep pushing here,” left fielder Ian Happ said.

Cubs right-hander Javier Assad (7-5) allowed one earned run and three hits in 5 2/3 innings.

New York scored its first run when Austin Wells drove in Gleyber Torres with a groundout in the first. The Yankees made it 2-0 in the sixth when Aaron Judge swiped third as part of a double steal and scampered home on catcher Christian Bethancourt’s throwing error.

Judge, who leads the majors with 51 homers, went 0 for 3 with a walk. He hasn’t homered in 11 games in his longest streak of the season.

The Cubs had their best scoring opportunity in the fifth. Pete Crow-Armstrong singled with one out, but was caught stealing. Patrick Wisdom then tripled to right, but he was stranded when Cortes got Bethancourt to foul out.

“He handled it really well, came into a high-leverage situation with a runner on third and got the job done,” Wells said of Cortes. “From there, cruised.”

Yankees first baseman Anthony Rizzo heard more cheers in his second game back at Wrigley Field since he was traded by Chicago to New York in July 2021. He tipped his cap before his first at-bat and reached second on Crow-Armstrong’s dropped catch in center.

TRAINER’S ROOM

Yankees: Schmidt and RHP Ian Hamilton (right lat strain) were reinstated from the 60-day injured list before the game. RHPs Phil Bickford and Nick Burdi were designated for assignment.

Cubs: LHP Justin Steele (left elbow tendinitis) was scheduled to play catch Saturday. He went on the 15-day IL on Wednesday. ... RHP Hayden Wesneski (right forearm strain) threw an inning at Triple-A Iowa.

UP NEXT

RHP Gerrit Cole (6-3, 3.65 ERA) is slated to start for New York on Sunday on his 34th birthday. RHP Jameson Taillon (9-8, 3.66 ERA) takes the mound for Chicago in the finale of the weekend set. Taillon went 22-11 with a 4.08 ERA with the Yankees in 2021 and 2022.

AP MLB: https://apnews.com/hub/mlb

New York Yankees starting pitcher Clarke Schmidt reacts in the dugout after being pulled during the fifth inning of a baseball game against the Chicago Cubs in Chicago, Saturday, Sept. 7, 2024. (AP Photo/Paul Beaty)

New York Yankees' Giancarlo Stanton, right, celebrates with teammate Gleyber Torres (25) after Torres scored on an Austin Wells ground out during the first inning of a baseball game against the Chicago Cubs in Chicago, Saturday, Sept. 7, 2024. (AP Photo/Paul Beaty)

Chicago Cubs starter Javier Assad delivers a pitch during the first inning of a baseball game against the New York Yankees in Chicago, Saturday, Sept. 7, 2024. (AP Photo/Paul Beaty)

New York Yankees' Aaron Judge celebrates with teammates in the dugout after scoring on a throwing error by the catcher during the sixth inning of a baseball game against the Chicago Cubs in Chicago, Saturday, Sept. 7, 2024. (AP Photo/Paul Beaty)

New York Yankees starter Clarke Schmidt delivers a pitch during the first inning of a baseball game against the Chicago Cubs in Chicago, Saturday, Sept. 7, 2024. (AP Photo/Paul Beaty)