A McGill University professor has found some eyebrow-raising numbers regarding short-term rentals in B.C.
David Wachsmuth conducted a study dissecting the influence of commercial short-term rental growth on B.C. housing availability and costs.
“The report underscores the need for the Province of B.C. to implement a province-wide short-term rental registry and platform accountability measures to save tenants billions in rent and address housing supply, attainability, and affordability,” the study said.
The study found that more than 16,000 homes shifted from residential to dedicated commercial (investor-owned) short-term rental in 2022, signifying a 19.1 per cent decline in housing availability across the province.
The study says the rapid surge of short-term rentals in 2022 contributed to a 28 per cent rise in rent costs.
It is estimated that B.C. tenants bore an extra $2 billion in rent costs between 2016 and 2021 due to the vast expansion of 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,” said Annie Hodgins, the Canadian Centre for Housing Rights’ executive director.
“This report demonstrates the extent to which commercial short-term rentals are exacerbating Canada’s affordability crisis by driving up rents and taking sorely needed units away from renter households.
“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 Vancouver, the city has made moves recently to try and address short-term rental issues by increasing fees.
“I think what we are hearing, loud and clear, is frustration with unlicensed or illegal operations of short-term rentals within the city,” Vancouver city Coun. Sarah Kirby-Yung said.
It will now cost $1,000 annually to license a short-term rental in Vancouver.
City staff had proposed to bring the fee up to $450, but during last week’s meeting, Coun. Lenny Zhou proposed an amendment to increase the fee.
“We can send a very clear signal to people that illegal short-term rentals are not acceptable in the city of Vancouver,” Zhou told Global News.
Vancouver’s current short-term rental fee of $109 falls well below those of other B.C. cities, such as Squamish at $500 and Kelowna at $345.
Before the year’s end, B.C. Housing Minister Ravi Kahlon said he is planning to introduce legislation to address short-term rental concerns.
© 2023 Global News, a division of Corus Entertainment Inc.
