StatCan finds long-term housing potential in short-term rental properties
A surge in short-term rentals across Canada could be contributing to the housing crisis, according to new data from Statistics Canada.
The number of short-term rental listings jumped over 60% between 2017 and 2023, while those potentially suitable for long-term housing climbed by more than 80%.
The report identified over 100,000 short-term rentals that could be converted into homes. However, StatCan assistant director Marie-Christine Bernard cautioned that this doesn’t necessarily mean all these units will become available for long-term rental.
“We wanted to put it in perspective in terms of the housing market. We didn’t want to necessarily say that it’s not significant. It depends on the community,” said Bernard.
British Columbia, grappling with a severe housing shortage, has begun enforcing new restrictions that limit short-term rentals to principal residences following a preliminary analysis that found over 10,000 listings operating illegally.
“My view is we need this housing available to people here,” BC Housing Minister Ravi Kahlon said.
Supporters of the new regulations argue that any additional housing is crucial in the current crisis, while opponents, including Airbnb and short-term rental owners, claim the impact will be minimal.
“Short-term rentals have not caused the housing crisis,” Fairbnb executive director Thorben Wieditz told CBC Canada. “But short-term rentals, as research study after research study has shown, contribute to and exacerbate existing housing crises.”
Nathan Rotman, Airbnb’s regional lead for the northeastern US and Canada, disagreed, saying the new BC rules won’t make a substantial difference in the housing market. The potential long-term housing units identified represent less than 1% of Canada’s total housing stock.
Rotman acknowledged, however, that the changes will impact jobs in the tourism sector.
Read next: How Canada can solve “mismatch in housing supply and demand”
The data, which covers Airbnb and VRBO listings, doesn’t delve into the impact of short-term rentals on affordability or vacancy rates. Statistics Canada defined potential long-term rental units as those offered as entire homes, available for at least 180 days a year, and not designated as vacation homes.
With Canada’s vacancy rate at a record low of 1.5%, and cities like Vancouver facing even tighter rental markets, the debate over the role of short-term rentals in the housing crisis is likely to intensify.
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