Canada Strengthens Measures to Regulate Short-Term Rentals Like Airbnb
The government announces a $50 million investment in measures that could reduce the availability of short-term rental accommodations.
01/02/2024 - The Canadian government recently announced a $50 million investment in the Short-Term Rental Enforcement Fund, according to Cult MTL. This fund aims to help municipalities enforce regulations targeting approximately 235,000 Airbnb, VRBO, and other similar short-term rental units across Canada. The stated goal is to “bring non-compliant units back to the long-term rental market.”
According to Housing Minister Sean Fraser, “It is essential to ensure that short-term rentals do not exacerbate Canada’s housing crisis.” The fund will finance the hiring of enforcement staff, complaint management, and inspections.
As reported by Cult MTL, municipalities, Indigenous communities, and, in exceptional cases, provinces and territories, must have already implemented strict regulations to qualify for this funding. These regulations include limiting short-term rentals to primary residences.
Read the full article on Cult MTL.
Are Short-Term Rentals Truly Responsible or Just Scapegoats?
While the government’s investment is presented as a solution to the housing crisis, an analysis by the Conference Board of Canada offers a more nuanced view. The report argues that short-term rentals like Airbnb have a minimal impact on rising rents or housing shortages. Instead, the main issue lies in inadequate planning to build sufficient housing to keep up with rapid population growth.
The report highlights that the number of Airbnbs in Canada is too small to significantly affect prices or housing availability. In contrast, restrictive policies on short-term rentals may obscure the real causes of the issue while negatively impacting the tourism sector.
In fact, according to Statistics Canada, Canadian tourists account for about 70% of guests in short-term rental properties. Restricting such rentals could limit affordable accommodation options, forcing travellers to pay higher prices with fewer choices beyond traditional hotels.