A report led by the Canada Research Chair in Urban Governance says restrictions on short-term rentals in British Columbia have reduced rents by 5.7 per cent, saving tenants more than $600 million last year.
That figure is the result of municipal restrictions, in particular requirements that short-term rental units must be located within the operator’s principal residence.
The report, from chair David Wachsmuth and researchers at McGill University, says a new provincial regulation for B.C. communities with more than 10,000 residents has the power to carry similar savings across the province, easing affordability challenges.
The change took effect in May, requiring listings on platforms such as Airbnb and Vrbo to be located in the operator’s principal residence and one secondary suite.
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Assuming the provincewide requirements have the same efficacy as existing municipal rules, Wachsmuth’s report says tenants in those cities should see rents decline by four per cent, amounting to a savings of $592 million each year by 2027.
The report says B.C. renters would pay an extra $1 billion within two years if the province’s rules were to be repealed after this year.
That’s a finding Premier David Eby’s New Democrats are highlighting in a statement one month before B.C.’s election, saying provincial Conservative Leader John Rustad recently told supporters he would reverse the short-term rental restrictions.
B.C. passed its short-term rental accommodations law in October 2023 and the government has been phasing in the measures.
The McGill report says a provincewide registration system with additional “accountability requirements” for listing platforms is expected early next year.
It says the “full implications” of B.C.’s rules won’t become clear until then, when the platforms will be obligated to remove listings without valid licences.
The report says the researchers used public and private data sources to conduct their analysis, as well as a modelling approach that’s widely used by economists.
© 2024 The Canadian Press
