Lahaina residents worry a rebuilt Maui town could slip into the hands of affluent outsiders

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The people of Lahaina, a town in Maui, are fearful that the rebuilding of their community might attract wealthy outsiders. Richy Palalay, who has deep roots in the town and even bears a tattoo of “Lahaina Grown” on his arms, shares these concerns.

A long-standing housing crisis and an increase in affluent individuals seeking second homes have pushed local residents like Palalay out, threatening the town’s unique character and identity.

The recent wildfire that devastated most of the small coastal settlement has exacerbated these fears. There is concern that the rebuilding effort will focus on creating a tropical sanctuary for wealthy newcomers, thus accelerating an existing problem in Hawaii: the departure and displacement of native and locally-born residents who find it financially impossible to stay.

Palalay expressed his worry that large land developers might exploit the burned land as a chance to erect unaffordable hotels and condos. Born and raised in Lahaina, 25-year-old Palalay had worked his way up in a local seafood restaurant until the fire laid waste to the town, including his workplace and neighborhood, and took 93 lives.

The disaster affected more than 80% of over 2,700 structures in Lahaina, leaving 4,500 residents in need of shelter. The typical wage earner is already struggling to afford a home, with the median house price at $1.2 million and the median condo price at $850,000.

Sterling Higa, the head of a nonprofit advocating for housing in Hawaii, has observed that Lahaina has seen a blend of generations-old family homes and gentrification, resulting in local families being pushed out.

Rebuilding may be further complicated by slow insurance payouts and inadequate funds, recalling the struggles many faced after Hurricane Iniki in 1992. But Palalay remains determined to stay, even willing to participate in the reconstruction himself.

During a visit with FEMA, Gov. Josh Green expressed a commitment to preserving Lahaina for its locals, contemplating state acquisition of land for workforce housing or a memorial for those lost.

He emphasized, “We want Lahaina to be a part of Hawaii forever. We don’t want it to be another example of people being priced out of paradise.”

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