It’s no secret that rental costs on Vancouver Island, in Vancouver, and surrounding areas have become a nightmare for everyone, so it may not be surprising that all of BC is facing similar challenges.
According to a new study released by McGill University by Dr. David Wachsmuth, one of the factors contributing to the rapid rising of rental costs has been tied to the increase in short-term rentals across the province—particularly with businesses such as Airbnb and VRBO.
The McGill study has compiled the data and released an official study detailing these far-reaching impacts, including the following key insights:
- In the summer of 2023, around 16,810 homes shifted from residential to dedicated commercial (investor-owned) short-term rentals, signifying a 19.1% decline in housing availability over 2022.
- The rapid resurgence of short-term rentals in 2022 contributed to 28.1% of rent increases that year.
- The study estimates that tenants province-wide bore an extra $2 billion in rent costs between 2016 and 2021 due to the expansion of commercial short-term rentals.
- The report warns that unless addressed, the housing loss induced by commercial short-term rentals will persist, with renters continuing to shoulder the burden.
They also project that British Columbians are estimated to be paying 20% more than they should be in long-term rentals due to increases in short-term rentals.
“Across Canada, our existing stock of affordable housing is disappearing at an alarming rate. New units being built do not meet the affordability levels that Canadians need, and for every new unit built, at least five are being lost to excessive rent increases, renovation, redevelopment, and conversion to other uses like short-term rentals,” says Annie Hodgins, Executive Director of the Canadian Centre for Housing Rights.
“Governments in British Columbia and across Canada must work together to implement regulations to stabilize rent increases and mitigate the impact of commercial short-term rentals on the housing affordability crisis.”
In response, a Canadian non-profit organization known as Fairbnb has addressed B.C.’s Eby government with key recommendations to fulfill its commitment to “establishing new tools for local governments to help them better regulate short-term rentals in their communities”, outlined in its December 2022 Housing Mandate Letter.
Potential actions needed to counter the effects include the implementation of a province-wide short-term rental registry and platform accountability measures to save tenants money and address issues surrounding housing supply, attainability, and affordability.
According to reports, Fairbnb emerged in response to the 845% growth in Airbnb listings in Canada since 2012 and is made up of concerned citizens, academics, tenant organizations, and more.
If you wish to read more about Fairbnb, visit their website.
