BC Short-Term Rental Restrictions Face Fierce Opposition

(Image courtesy of CBC)

Canada’s housing crisis has been hard felt in the province of British Columbia, more than almost anywhere else in Canada. The provincial NDP government has attempted to alleviate this crisis through policy efforts, with the most controversial being restrictions on short-term rentals. The provincial government believes this will help remedy the current housing crisis. 

However, short-term rental owners and services like Airbnb have publicly criticized the government’s actions in restricting the short-term rental industry, pointing out that they have not impacted the rental and housing market at all, or have even made matters worse. 

Alex Howell, Airbnb’s Canadian policy lead, spoke to Coastal Front about the current policies affecting short-term rentals. “I completely understand what the [provincial] government is trying to do,” she said, “I think what they're trying to do here is take a shortcut to address the housing crisis, and it's not going to have the impacts that they hope it will.”

An anonymous owner of a short-term rental in Vancouver also told Coastal Front that municipal restrictions are more stringent than the provincial regulations, with him having to pay $1,000 per year just to obtain a license in Vancouver if it meets the city’s standards of being the principal residence, in addition to the provincial regulations. 

Effective Restrictions?

(Courtesy of Statistics Canada)

The BC government has attempted to limit the number of short-term rentals through the introduction of the Short-Term Rental Accommodations Act, which increased bylaw fines and mandated monthly data sharing with the government, forcing compliance from short-term rental platforms to remove listings at the government’s request. The Act came into effect in October 2023. 

The Act does not apply to hostels, motels, and hotels. Many of these establishments that are franchises originate from the US or other countries, as opposed to local BC Airbnb owners, for example. 

Some have pointed to the recent commitments by the provincial government to avoid American business and strengthen local ones, saying that the restrictions against local short-term rentals contradict the government’s position on reinforcing the local economy. 

The government’s rationale behind restricting short-term rentals is to ensure that long-term affordable housing is made available to British Columbians, stalling the share of short-term rentals in the overall housing market. 

“British Columbia has one of, if not the most complicated, regulatory framework [for short-term rentals] of anywhere in North America,” Howell stated. 

Statistics Canada also provided a report on short-term rentals concerning the national housing market. They found that the total number of short-term rentals that could also function as potential long-term dwellings is 107,266, exactly less than one percent of the total housing market in Canada. 

Statistics provided by Airbnb, pulled from the Canadian Mortgage and Housing Corporation, show that new housing starts in BC dropped by 9.2 percent in 2024. “Starts" refers to the number of new residential construction projects that have begun during a specific period.

Real estate brokerage firm Rennie published statistics that showed a dismal ratio between BC housing starts and pre-sale transactions: 28,000 to 10,000, further casting doubt on the success of short-term rental restrictions in providing affordable housing. 

The Conference Board of Canada, using actual Airbnb booking data rather than information from a webpage, found that “Airbnb activity at the current levels has not generated an economically meaningful increase in rents across Canada’s major cities.” 

Impact on the Market

Airbnb provided internal records of its economic impact in BC in 2024, with more than one million British Columbians using the service in the year, which supported 24,000 jobs generated through the service, generated $2 billion in labour income, and contributed $89 million in tax revenue.  

The provincial government has rolled out a rental verification system for Airbnb and similar services like Booking.com, which has gone into effect ahead of the summer travel season. 

Many have been critical of this system as it apparently incorrectly flags listings, even if the owner is registered and owns a government-approved permit to operate. 

Howell noted this is a sign of an incomplete and poorly tested system being rushed out by the government. 

“Everything's fine for three or four days, there's no issues, and then suddenly something will change in the government's logic and then they get a notice,” Howell said, mentioning how users could get undue restrictions over simple items like putting a letter in a unit’s numerical address for example.  

At least half the bookings at risk involve domestic travellers within Canada, despite proclamations of support for local tourism as stated by the BC provincial government. The system was implemented on June 23. 

“We have warned the government for months now in writing and verbally,” Howell explained, “we meet with them twice a week, and unfortunately, they're just not listening to reason, they're disconnected from the reality of what people are facing on the ground.”

The anonymous owner also pointed out how others have bypassed these restrictions by doing private transactions with short-term rental owners who no longer advertise their properties on services, and instead operate in more closed spaces like Facebook groups.

“The market will find a way and it's the government's decision as to whether or not they want a piece of the pie or not,’ the owner said, noting how the government is missing out on tax revenue on short-term rentals with so many being shut down or transactions being done in private.