Maui housing crisis worsens, residents look to rebuild

HONOLULU (KHON2) — The Maui wildfires displaced more than 6,000 households, a troubling situation for an existing housing crisis.

Nine months after the fire, Mark Ross’s Kula property is clear of the burned debris, but he is not able to rebuild yet.

“I figured I was just going to be as proactive as possible but you know the erosion problem, the septic system, all those things pile up, and then we’re at nine months since the fire and we’re not and we’re not breaking ground yet,” Ross said.

He is waiting for the Department of Health to approve a permit for a septic system. Following the county’s permitting, the Maui County Council recently passed an emergency permitting process for those who lost their homes in the fires.

A streamlining that’s needed — as University of Hawaii researchers said Maui County’s permitting process is one of the slowest in the state.

“The typical single-family home took 315 days. To get a permit for multi-family development it was 427 days,” said Justin Tyndall, UHERO assistant professor.

A UHERO report found that high interest rates, last year hitting over seven percent on mortgages, added to a decline in home sales.

2023 saw the fewest home sale transactions in the last 25 years.

High prices were also a factor. Ross said his insurance will only cover about 75% of the cost to rebuild.

“It’s material, it’s labor and limited supply, limited contractors,” Ross added.

A Maui County spokesperson said they contracted with a private vendor to expedite the permits for residents who lost their homes in the fire, admitting long waits for permits have been an issue over multiple administrations. They said four residents from Kula have submitted their plans for review and will be expedited as needed.