Two condos in the same Kāʻanapali tower can sell at very different prices. If you are getting ready to list or make an offer, the details behind each micro‑market matter more than you might expect. In this guide you will learn how zoning, land tenure, HOA and insurance costs, and short‑term rental rules shape value, plus a simple pricing framework you can use now. Let’s dive in.
What Kāʻanapali micro‑markets mean
Kāʻanapali is a cluster of distinct product types: oceanfront resort condos with hotel‑style amenities, smaller condo complexes nearby, and a mix of fee‑simple and leasehold titles. Each segment attracts a different buyer pool and supports different price points. The biggest drivers are the unit’s land tenure, legal ability to operate nightly rentals, and the HOA’s budget and insurance profile. Treat every unit as a micro‑asset, even if floor plans look identical.
Demand drivers to watch
Visitor demand powers pricing for resort condos. State reports show visitor arrivals and spending fluctuating while West Maui occupancy improved through 2024 and 2025. You can track month‑to‑month shifts in arrivals and spending in the state’s DBEDT updates, including a report noting softer July 2025 arrivals and spend levels from the Governor’s office, and a separate update showing August 2025 spending growth in Maui County from Maui Now.
Visitor mix has also shifted toward higher‑spending guests in 2024 and 2025, which can support stronger average daily rates for premium oceanfront product. See coverage of this shift in SFGATE’s reporting on increased visitor spending. Private vacation rentals have seen demand ebb and flow relative to hotels since 2023, so test revenue expectations against current data, not old rules of thumb. For wider industry context, review AirDNA’s 2025 U.S. STR market trends and local coverage of vacation rental demand changes.
Seasonality remains strong. Winter and holiday periods typically deliver peak occupancy and ADR. Listing timing and STR calendar control can meaningfully change your first‑year revenue or days on market.
Policy, taxes, and insurance shape price
Short‑term rental rules
Maui County has proposed phasing out many transient vacation rentals in apartment‑zoned buildings, with West Maui timing discussed in public proposals and council hearings. This is the single largest policy risk for many condo values. You can read local coverage of the proposals and their timing from Maui Now and countywide impact analysis from UHERO on the University of Hawaiʻi site. If your unit relies on nightly rental income, you need a scenario plan before you set price.
Taxes and fees
Hawaii approved a lodging tax increase to help fund resilience projects that takes effect January 1, 2026. That change increases the checkout tax paid by visitors and reduces net revenue to owners if nightly rates do not adjust. See the statewide update on AP News. Also confirm your unit’s Maui County property tax classification, since TVR‑classified properties historically carry higher rates. You can review classifications and links to current rates on the County of Maui finance page.
Insurance and lending
After the 2023 Lahaina wildfires, insurers tightened underwriting in Hawaii. Some associations faced premium spikes or coverage challenges, which can lead to special assessments and narrower lender options. Plan for higher annual insurance costs and verify master policy details upfront. For background on market stress and legislative responses, see AP’s reporting on Hawaii insurance market conditions.
How to price each segment
Hotel or resort zoned STR product
If your building is hotel or resort zoned with an established rental program, buyers often value stability and on‑site amenities. Use a revenue‑based approach that shows trailing 12 to 24 months of ADR, occupancy, and net income. Price with a premium for clear, durable STR eligibility and strong reviews or repeat demand.
Apartment‑zoned Minatoya units
If nightly rentals rely on grandfathered allowances, apply a regulatory risk haircut. Quantify the downside if STRs phase out and the buyer pool shifts to second‑home or long‑term use. Be ready to show two list strategies: a price anchored to current STR income and a conversion price that reflects long‑term use.
Leasehold units
Lease expiration dates and ground rent changes can materially reduce price. Present a simple sensitivity that compares value if the lease runs to term versus renegotiates at higher ground rent. Expect buyers to compare leasehold to fee‑simple options in the same area and discount accordingly.
Owner‑occupant oriented homes
If likely buyers are long‑term users, center your pricing on owner‑occupied comps rather than STR yields. Highlight floor plan livability, storage, and parking. Keep marketing focused on use value more than nightly rates.
Build a three‑scenario model
Use a clear, shared set of assumptions so buyers see your logic and trust your price.
- Base case: STR rules continue as today. Use the latest ADR and occupancy from a property manager or a trusted dataset like AirDNA’s market trends, and align seasonality with the state’s hotel and visitor stats.
- Downside: STR restrictions phase in. Remove nightly rental income, shift to owner use or long‑term rent, adjust taxes and expenses, and widen your expected days on market. Use UHERO’s framing of countywide impacts to set reasonable probabilities here.
- Upside: Hotel or resort zoning with strong occupancy. Apply a modest premium for clear legal status and durable demand.
Show your math, including cap rate or gross rent multiple if you are courting investor buyers. A small ADR change can move value significantly, so sensitivity test ADR plus or minus 5 to 10 percent.
Practical listing tactics
- Gather 12 to 24 months of rental history with monthly ADR, occupancy, platform fees, and management costs. Provide both conservative and best‑case views.
- Pull three years of HOA budgets and any special assessment history. Include master insurance certificates and any pending renewals.
- Confirm zoning, Minatoya or permit status, and tax classification on county pages before you go live. Use the Maui County classification resource as a starting point.
- Time the launch to capture seasonal demand, and consider a staged pricing plan if regulatory news shifts during your listing window.
Buyer tips for Kāʻanapali
- Verify the unit’s ability to operate nightly rentals and whether that right is hotel or resort zoned or grandfathered.
- Ask for lease documents if the property is leasehold, and note any renegotiation dates.
- Review HOA financials and master insurance to understand assessment risk and lender fit.
- Underwrite your own ADR and occupancy using third‑party data and recent revenue reports.
Data sources to track
- State DBEDT hotel and visitor updates for Maui and West Maui occupancy trends. Start with the Governor’s DBEDT newsroom.
- County of Maui finance and planning pages for classifications, rates, and TVR policy. See the classification page.
- Local reporting on proposed STR changes, including Maui Now’s coverage and UHERO’s impact analysis.
- STR market trends and tools, such as AirDNA’s 2025 outlook.
- Insurance and tax policy updates affecting operating costs, including the 2026 lodging tax changes on AP News and post‑wildfire insurance conditions on AP News.
Ready to price with confidence or zero in on the right offer strategy for your Kāʻanapali condo or home. Let’s tailor a plan to your unit’s micro‑market, show real numbers, and present with premium marketing that reaches the right buyers. Connect with Christian Slocum to get started.
FAQs
What is a Kāʻanapali micro‑market?
- It is a small, distinct slice of the area’s inventory where zoning, land tenure, HOA rules, and buyer demand interact in a specific way, so similar floor plans can trade at different prices.
How do Maui STR proposals affect pricing in Kāʻanapali?
- Proposals to phase out some apartment‑zoned vacation rentals can shrink the investor buyer pool and lower values for affected units, so sellers should model downside and buyers should price in risk.
How does leasehold versus fee‑simple change value?
- Leasehold units usually sell at a discount because ground rent, lease length, and renegotiation risk reduce returns compared to fee‑simple ownership.
Which data should I use to set price for a resort condo?
- Use building‑level comps, 12 to 24 months of rental history, current ADR and occupancy from a trusted dataset, HOA budgets and insurance, and county tax classification details.
How should I time my listing in Kāʻanapali?
- Aim for periods that capture peak demand and ADR, and be ready to adjust pricing if regulatory news shifts during your listing window.
Will the 2026 lodging tax change my STR revenue?
- Yes, the state’s lodging tax increase effective January 1, 2026 raises guest checkout taxes, which can reduce net owner revenue unless nightly rates adjust accordingly.
