B.C.'s Short-term Rental Regulations Already Proving Effective, New Report Reveals Repealing B.C.'s Short-term Rental Accommodations Act Could Cost Tenants Billions

VANCOUVER, BC, Sept. 18, 2024 /CNW/ - Dr. David Wachsmuth has published a new report titled "Short-term Rental Regulations in British Columbia," offering a comprehensive analysis of the impact and effectiveness of short-term rental (STR) regulations in the province, and the critical role they have played in easing rent pressures across BC.

Professor Wachsmuth is the Canada Research Chair in Urban Governance at McGill University and a leading expert on STR research.

The report reveals that STR regulations - particularly principal residence restrictions implemented by municipalities before the introduction of the Short-term Rental Accommodations Act of Bill 35 - have decreased rents by 5.7%, saving B.C. renters more than $600 million in 2023 alone.

"With the introduction of Bill 35, and principal residence restrictions covering much of the province, we expect the savings for tenants to double," said Eric Swanson of Third Space Planning and board member of Fairbnb Canada Network. "Although the legislation is only a few months old and not yet fully implemented and enforced, we're already seeing positive results, with the number of homes lost to STRs dropping by 15.8%," Swanson added.

True home-sharing activity continues to be permitted provincewide under the legislation.

The report warns that repealing these regulations would come at a significant monetary cost to B.C. tenants. The analysis shows that without Bill 35, renters would face an additional $1 billion in rent increases within two years, effectively imposing what Thorben Wieditz, Fairbnb Canada's Executive Director, described as an "Airbnb tax" on B.C.'s renter population while benefiting a small group of commercial operators and a $74 billion Silicon Valley-based corporation.

Key Highlights from the Report:

• Canadian neighborhoods with principal residence restrictions in place have seen average rent increases 3.3% lower than unprotected municipalities.
• Existing municipal STR regulations saved B.C. renters over $600 million in 2023 alone.
• Province-wide STR regulations, including residence restrictions, are projected to save B.C. renters an additional $593 million annually by 2027.
• Repealing the province's STR rules after 2024 could cost tenants an additional $1 billion.

"This report provides a transparent, data-driven evaluation of the success of STR regulations in B.C.," said Dr. Alexandra Flynn, Associate Professor, Peter A. Allard School of Law, UBC, and Co-Director, Housing Research Collaborative, UBC. "This report is based on peer-reviewed research and publicly available data, ensuring others can replicate and validate the findings."

The academic study on which the report is based can be accessed here.

Fairbnb Canada Network stresses the importance of continued enforcement of B.C.'s STR regulations to protect housing affordability and prevent commercial operators from exploiting housing stock at the expense of long-term residents.

"The housing crisis is one of the most significant issues facing residents in B.C., and this research shows that one set of government tools to reign in housing costs are working," added Flynn. "Renters stand to lose if these effective policies are repealed."

SOURCE Fairbnb Canada

For more information, please contact: JJ Fueser, [email protected], 416-893-8570