Short-term Rental Regulations Save Ontario Residents Billions

Coalition Calls for Province-wide Principal Residence Restrictions

TORONTO, Sept. 16, 2024 /CNW/ - McGill University Professor Dr. David Wachsmuth has published a new province-wide report, Short-term Rentals and Housing Affordability in Ontario. The report quantifies the impact of commercial short-term rentals (STRs) on housing affordability and rental prices across Ontario. It emphasizes the critical role that STR regulations – including principal residence restrictions – have played in stabilizing rental costs within the province.

"This report is groundbreaking because it's the first study in Canada to demonstrate a causal link between commercial STR operations and rent increases across municipalities," said Thorben Wieditz, Executive Director of Fairbnb Canada Network. "It is based on peer-reviewed academic research, providing undeniable evidence that commercial STRs have driven up rents."

The report reveals that the growth of short-term rentals—especially commercial operations—has led to significant rent increases, costing Ontarians $1.6 billion in additional rent since 2017.

One key driver of this rent inflation is that landlords can charge significantly higher rates to tourists than long-term tenants. In July 2023, commercial hosts earned an average of $6,700 per listing, nearly five times the average monthly rent of $1,408 in Ontario. A staggering 41% of Airbnb listings in Ontario are operated by commercial hosts who convert residential properties into "ghost hotels," with the top 10% of commercial hosts generating 44% of total STR revenue in the province.

"Housing planned, approved, and built to accommodate Ontario residents should not be repurposed as ghost hotels," Wieditz emphasized. "The province establishes housing targets, and it has a responsibility to prevent these housing-to-hotel conversions, which reduce housing supply and contribute to rising rents."

Key Findings:

• STR regulations are proving effective: Current STR regulations across Ontario already save tenant households more than $1 billion annually.
• Principal residence restrictions work: Municipalities with principal residence restrictions experienced rent increases that were 3.3% lower, saving tenants an average of $50 per month.
• Province-wide potential savings: Expanding principal residence requirements across Ontario could save renters an additional $572 million annually.

"These findings offer compelling evidence that STR regulations, including principal residence restrictions, successfully reduce rental costs in various municipalities across Ontario," added Laura Murphy, Senior Housing Policy Advisor at the Advocacy Centre for Tenants Ontario.

Fairbnb Canada Network and its coalition of housing advocates are urging the provincial government to implement province-wide principal residence restrictions to protect renters further and ensure housing remains affordable for all Ontarians.

About Fairbnb Canada Network
Fairbnb is a Canadian non-profit organization advocating for equitable short-term rental regulations across the country. Comprising voices from tenant organizations, the regulated hotel and B&B industry, property owners, academics, and concerned citizens, Fairbnb's mission is to protect housing security. Originally founded as an informal coalition, Fairbnb emerged in response to the 845% growth in Airbnb listings in Canada since 2012. They call for a robust, nationally consistent policy framework that balances fair, safe, and respectful short-term rental legislation without seeking to ban genuine "home-sharing." Fairbnb supports short-term rental hosts who legally rent spare rooms or spaces in their principal residences, emphasizing compliance with all applicable laws and regulations. Learn more at www.fairbnb.ca.

SOURCE Fairbnb Canada

For more information, please contact: Thorben Wieditz at 647-409-8997 or [email protected]