The Role of Short-Term Rentals in the Canadian Housing Market

Short-term rentals (STRs) have become a significant and controversial part of the global housing market, and Canada is no exception. With platforms like Airbnb and Vrbo, many homeowners have capitalized on the booming tourism sector by offering their properties for short stays. However, this growth in STRs raises important questions about their impact on long-term housing availability. 

According to recent data from Statistics Canada, as of 2023, there were 107,266 short-term rental units across the country that could potentially serve as long-term dwellings. This represents about 30.2% of all STRs in Canada. These units are typically entire homes listed for less than 180 days a year. These properties, if converted to long-term rentals, could help alleviate some of the strain on housing markets, especially in areas with high demand. 

Why are Short-Term Rentals in Canada Popular? 

In many tourist-heavy regions, renting a unit on a short-term basis can generate significantly higher revenue than a traditional long-term lease. For example, in cities like Toronto, Vancouver, and Montreal, a furnished STR can bring in two to three times the monthly income of a standard rental, especially during peak travel seasons or for events like conferences, concerts, or festivals.  

Where Are Short-Term Rentals Most Common?

The distribution of short-term rentals in Canada shows notable regional variations. British Columbia leads with 1.38% of its housing stock up of potential long-term dwellings from STRs, followed by Prince Edward Island at 1.30%. In contrast, the national average is just 0.69%. Other provinces such as Ontario and Quebec see a slightly lower share, with Ontario accounting for 0.69% and Quebec at 0.51%. 

According to a February 2025 by Airbnb report, “Across the country, groups (of travellers) are also choosing staycations in premier ski destinations like Mont-Tremblant, Revelstoke, and Whistler, where world-class slopes, cozy chalets, and vibrant après-ski scenes” For instance, in Whistler, specifically, 35% of housing units could potentially be long-term rentals, highlighting the outsized influence of tourism-driven STRs in specific areas. Other tourist towns like Mont-Tremblant and Canmore also feature significant percentages of STRs that could contribute to the long-term housing market. 

The Impact on Housing Availability

While short-term rentals provide substantial income for property owners, they also reduce the number of homes available for long-term renters. In major cities even small reductions in the number of available long-term rental units can further exacerbate the affordability crisis. A Lincoln Memorial University Law Review article sums up how short-term rentals affect housing affordability.

“The lack of housing options combined with the soaring prices of rent individuals face, leaving hopeful homeowners with an insurmountable obstacle: pay more to rent while trying to save for a home. They are forced to try and save money when the lower-priced houses are the ones being bought and rented for profit, while paying more and more to rent. This leaves homeownership as a mere dream for many when our parents scarcely had the same issue.” 

The impact on local housing markets can be even more severe in cities like Whistler and Canmore, where STRs account for more than 15% of the housing market. These towns are prime examples of how STRs can drive up rents and limit availability for residents who need stable, long-term housing. 

Final Thoughts

Short-term rentals in Canada represent both an opportunity and a challenge. While they offer significant economic benefits to homeowners and attract tourists, they also have a tangible effect on housing availability, especially in popular tourist areas. As the housing crisis continues to unfold, policymakers will need to strike a balance between fostering tourism and ensuring enough long-term housing options for residents. The role of STRs in the Canadian housing market can be complicated, and understanding their full impact is crucial for shaping future housing policies. 

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