Is B.C.’s Short-Term Rental Crackdown Actually Fixing the Housing Crisis?

One year after British Columbia introduced sweeping regulations targeting short-term rentals, questions remain about whether those changes have meaningfully improved housing affordability.

The new rules, which took effect on May 1, 2024, limit short-term rentals to a host’s principal residence, a secondary suite, or a laneway house on the same property. They apply to most communities with populations over 10,000.

Residents like Marv Gandall in Victoria say the changes have brought some welcome relief. Gandall, who has lived for a decade in the 157-unit Era on Yates complex, said the building had become overrun with short-term renters. Long waits for elevators, missing packages, damaged walls, and increased break-ins and vandalism were common.

"We called it a ghost hotel," Gandall said, describing the disruption caused by frequent turnover of short-term guests. He added that while enforcement isn’t perfect, the activity has noticeably decreased: "There has been a dip in the noticeable [short-term rental] activity, not only at the Era, but also when I've spoken to other concerned residents in major highrises."

Housing minister declares progress, but experts are cautious

B.C. Housing Minister Ravi Kahlon is touting the new rules as a success, citing lower rents and the removal of thousands of listings from platforms like Airbnb and VRBO. He said many former short-term rentals have returned to the long-term market.

“All my colleagues have stories from their communities of people moving into what used to be a short-term rental,” Kahlon said. “And we're seeing rents come down across the province.”

As of early April, about 15,000 properties had been added to the province’s new short-term rental registry, which is required for legal operation. Kahlon noted that before the registry launched, the government estimated there were around 22,000 short-term rentals in the province. The implication is that about 7,000 operators have either exited the market or failed to register.

Hosts who haven’t registered by May 1 will see their listings removed, and future bookings will be cancelled starting June 1. So far, more than $3 million has been collected in registration fees.

Drop in listings—but impact remains debated

David Wachsmuth, an urban planning professor at McGill University, prepared a report for the B.C. Hotel Association indicating the regulations are having the desired effect. His research found the number of active short-term rentals dropped by 15.8% from May 2024 to early 2025.

Provincial data supports that trend. Between May 2024 and February 2025, these cities saw the following declines in entire-property listings on short-term rental sites:

These communities also saw rising vacancy rates over the same period.

Rents fall in some areas—but not all

According to data from rentals.ca, average rent across B.C. fell 0.6% year-over-year in March. Vancouver rent dropped by 5.7%—its 16th consecutive monthly decline—though it remains Canada’s most expensive rental market.

Nationally, the average asking rent in March was $2,119, a 2.8% decrease. Toronto saw a 6.9% drop, its 14th in a row.

However, Victoria bucked the trend, with a 3% increase in March rent. And the Canada Mortgage and Housing Corporation (CMHC) has forecast that while vacancy rates may rise due to slower population growth, average rents will likely increase due to new, more expensive units entering the market.

The CMHC’s fall 2024 report showed Vancouver’s average rent for a two-bedroom apartment rose 5.5% compared to the previous year, though the pace of growth had slowed.

Experts caution against oversimplifying the cause

While some data indicates falling rents and more available units, experts warn it's difficult to isolate the effects of the short-term rental crackdown.

Andy Yan, director of the City Program at Simon Fraser University, said many variables influence the housing market—including interest rates, immigration, and economic trends.

“There’s a lot of noise trying to figure out what the signal looks like,” he said.

Will Gladman of the Vancouver Tenants Union said his group hasn’t seen evidence of rent relief. “Quite reliably, members are still being hit with increases,” he noted. Even if rents have dipped, the cost of living remains high. “It’s still unbelievably expensive and way out of reach,” Gladman said.

He acknowledged that bringing short-term rentals back into the housing market is positive, but he doubts such measures will have a major impact unless paired with broader affordability strategies.

Tourism concerns and future uncertainties

Brendon Ogmundson, chief economist at the B.C. Real Estate Association, said that while the intent to boost housing supply is valid, the rules may have unintended consequences—particularly in tourism-heavy regions. With fewer short-term accommodations available, hotel prices have risen and choices have narrowed.

He believes recent rent declines are more closely tied to a slowdown in population growth and an increase in new housing units, rather than directly resulting from the new regulations.

“It’s hard to determine how much of an impact [the rules have had],” Ogmundson said. “My guess is pretty small.”

Back in Victoria, Gandall voiced concern that rising hotel prices might pressure the government to relax the rules. He also suspects some residents are falsely listing units as principal residences to comply on paper while skirting the law in practice.

Minister Kahlon said the verification process for determining a unit’s eligibility is robust, and violators face daily fines of $5,000. While acknowledging that some will always try to bend the rules, he remains firm in the government’s approach.

“I think we're going to see other provinces move in the same direction,” Kahlon said. “We're hearing from local governments that this system works better for them, and we'll continue down this path to ensure people have access to affordable housing in their communities.”

Written by Ashley Joannou. Originally published on CBC News, April 24, 2025.