A recent report from Statistics Canada reveals that while the percentage of short-term rentals in British Columbia that could potentially serve as long-term housing has nearly doubled between 2017 and 2023, these units still represent a very small fraction of the overall housing stock. Despite growing concerns about the impact of short-term rentals on housing availability, the report indicates that these rentals account for less than 1% of all available housing in the province.
The findings come amid increasing efforts by provincial and municipal governments to regulate short-term rentals in hopes of freeing up more housing for long-term residents. In a notable move, British Columbia implemented new rules on May 1, restricting short-term rentals to a homeowner’s primary residence and adjacent units like basement suites or laneway homes on the same property.
However, data from Statistics Canada challenges the effectiveness of these measures in addressing broader housing issues. The report shows that, as of 2021, short-term rentals that could be converted to long-term housing made up less than half a percent of the housing units in Canada’s five largest metropolitan areas. Metro Vancouver had the highest rate, with these units comprising just 0.45% of the total housing stock.
These statistics are consistent with findings from the Conference Board of Canada, which concluded that the short-term rental market is too small to significantly affect rental prices. The report also noted that other factors, such as multiple-property ownership and housing supply relative to population growth, play a more substantial role in housing affordability.
The study specifically examined short-term rentals listed for more than 180 days a year, excluding vacation properties like cottages and dedicated holiday homes. While the report did not delve deeply into housing affordability, it acknowledged the complexity of the housing market and the many variables that influence it.
In Vancouver, approximately 2,400 short-term rental units could have been converted into long-term housing in 2021, representing about 0.8% of the city's total housing stock. While this was the highest rate in Metro Vancouver, other cities in the province, such as Kamloops, Kelowna, and Victoria, reported even higher percentages, with Kamloops reaching 1.4% and both Kelowna and Victoria at 0.9%.
Tourist destinations like Whistler, Sun Peaks, and Tofino reported significantly higher rates, with short-term rentals constituting between 20% and 40% of all housing in these areas. These locations, known for their appeal to tourists, are excluded from B.C.'s short-term rental regulations due to their reliance on tourism to support the local economy.
In response to these findings, experts caution against expecting significant changes in rental prices from short-term rental regulations alone. The challenge of making rent affordable remains complex, and while regulating short-term rentals may be part of the solution, it is unlikely to produce substantial results on its own.
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Reduction of B.C. short-term rentals to fix housing prices just “not going to happen,” stats suggest. Times Colonist. (n.d.-a). https://www.timescolonist.com/local-news/reduction-of-bc-short-term-rentals-to-fix-housing-prices-just-not-going-to-happen-stats-suggest-9308527
Reduction of B.C. short-term rentals to fix housing prices just “not going to happen,” stats suggest. Times Colonist. (n.d.-a). https://www.timescolonist.com/local-news/reduction-of-bc-short-term-rentals-to-fix-housing-prices-just-not-going-to-happen-stats-suggest-9308527