We follow high standards of editorial integrity on this website to help you make informed decisions. This article may include links to services and products from our partners. We may receive compensation when you sign up, at no cost to you. It does not change our unbiased reviews, evaluations or advice. Please take a look at our disclosure.

Short-term rentals have ‘significantly impacted’ housing affordability: Desjardins

SHARE:

Daily news image from my rate compass
Reading Time: < 1 minute

TORONTO — A Desjardins report suggests short-term rentals likely contributed to the housing affordability crisis in Canada and around the world.

The report says the proliferation of short-term rentals on platforms such as Airbnb and Vrbo has had a significant effect on the affordability and availability of homes by reducing the number of units available for long-term rentals and resale markets.

The report, citing data from analytics firm AirDNA, says Canada has more than 235,800 unique active short-term rental listings on Airbnb and Vrbo, the two largest hosting platforms, amounting to about 1.4 per cent of the country’s housing stock.

Real estate investors often earn more money on short-term rentals than long-term rentals, according to Desjardins.

Municipalities across Canada and abroad have implemented a variety of policies to combat short-term rentals in the hopes of opening up more housing supply as affordability continues to erode.

The report suggests governments partly restrict commercial non-principal short-term rentals, strictly enforce penalties for non-compliance and hold short-term rental platforms accountable.

This report by The Canadian Press was first published Dec. 4, 2023.

Author Bio

User
The Canadian Press

The Canadian Press is Canada’s independent national news agency that informs Canadians, providing depth, breadth and perspective with regional, national and international news 24/7/365.

Offers

Credit Card Deals

Tangerine World Mastercard® Review
Apply for a Tangerine World Mastercard® by April 30, 2024 and earn an extra 10% back* (up to $100)
Ends Apr 30, 2024
Tangerine Money-Back Credit Card Review
Apply for a Tangerine Money-Back Credit Card by April 30, 2024 and earn an extra 10% back (up to $100)
Ends Apr 30, 2024
Simplii Financial™ Cash Back Visa* Card Review
For your first 4 months, enjoy 10% bonus cash back‡ at restaurants and bars up to $500 spend. Get 4% cash back after that.
Ends Feb 29, 2024
Neo Card Review
Get $25 cash back when you sign up for the Neo Credit Mastercard.
Neo CardTM (Secured) Review
$25 welcome bonus for new cardholders