British Columbia is facing a serious housing affordability challenge, and policy solutions must be focused, evidence-based and responsive to the diverse realities of communities across the province.
In 2023, the Government of British Columbia introduced the Short-Term Rental Accommodations Act, which imposed province-wide restrictions on the use of most non-principal residences for short-term rental purposes. The intent was clear: the province wanted to return more housing units to the long-term rental market.
Nearly two years later, the evidence tells a different story. Rents continue to rise across B.C., with little measurable impact on housing affordability. Meanwhile, the unintended consequences of these blanket restrictions are being felt acutely in smaller and tourism-dependent communities throughout the province’s interior.
Supply–not short-term rentals–is causing the crunch
The latest research from the Conference Board of Canada confirms what many local leaders and residents already know: short-term rentals have a minimal impact on rents. The study found that increased short-term rental activity accounted for less than one percentage point of rent increases over a six-year period.
The real challenge in B.C. remains the substantial shortfall in housing supply. According to the Canada Mortgage and Housing Corporation, B.C. needs to build over 500,000 new homes by 2030 to restore affordability to historic levels.
At the same time, short-term rentals play an important role in supporting local economies. In the interior, they provide critical accommodation options for tourists, temporary workers, emergency responders, students and displaced residents. They also generate significant economic activity and support small businesses in communities that often lack sufficient hotel infrastructure.
Call to action
The Association of Interior REALTORS® has developed a set of practical recommendations that would improve the province’s short-term rental (STR) framework and better align it with regional needs. These recommendations would not undermine provincial housing goals but rather strengthen them by enabling local flexibility and economic resilience.
- First, the province should return zoning authority to local governments, allowing them to designate specific areas within their communities, such as tourism zones, where short-term rentals can operate under locally tailored rules. Municipalities that have invested in developing their own responsible STR bylaws should be supported, not sidelined.
- Second, the province should enable exemptions for short-term rentals located near essential worksites. In many regions, healthcare and infrastructure service delivery depends on the availability of temporary housing. The province could apply a model similar to transit-oriented development zones, allowing municipalities to approve STRs within a defined radius of hospitals and other critical projects or facilities.
- Third, the province should revise the timing of its exemption framework to better reflect the operational needs of tourism-based economies. Requiring municipalities to wait until November to implement exemptions, even if they meet the criteria, means entire summer seasons are lost. A more responsive model would allow exemptions to take effect immediately upon approval.
- Finally, the province should update its strata hotel and fractional ownership exemptions to reflect the reality of how these purpose-built properties are designed and used. The current criteria are too narrow and inconsistent, leading to confusion for operators and creating uncertainty for investors and municipalities alike.
Balanced regulations for STRs
These proposed changes would not weaken B.C.’s overall housing strategy. Instead, they would ensure that short-term rental regulation is both effective and fair, protecting long-term housing supply while respecting the unique needs of interior communities.
British Columbia’s housing challenges are complex, and solutions will require coordinated action on multiple fronts. However, the evidence makes it clear that restricting short-term rentals alone will not solve the crisis. What is needed now is a more balanced approach, one that recognizes the value STRs bring to regional economies and service delivery and gives municipalities the tools to manage them appropriately.
Seth Scott has overseen the advocacy function at the Association of Interior REALTORS since 2022. Prior to his role as the Director of Government and Stakeholder Relations, Seth was employed as a Senior Policy Analyst at the CFIB, representing the interests of small businesses and franchisees in B.C. Prior to that, Seth worked at a national think tank and has been involved in various political capacities.
Matthew Thornton founded Real North Strategies in 2023 after working over 16 years at Queen’s Park and as a public relations executive at Canada’s largest provincial association. He is on a mission to build a better Canada by helping associations, not-for-profits, and organizations solve the biggest public policy challenges of our time by providing world-class advocacy and communication services. From multi-million-dollar campaigns to working with volunteer committees & boards, he has a track record of innovation, creativity, and success when it comes to public affairs, media relations and government relations. Matthew is a proud University of Western alumni, having graduated with an Ivey Business School Executive MBA (’22), Master of Arts (’07) and Bachelor of Arts Honors (’05). He also achieved the CAE designation from the Canadian Society of Association Executives in 2012.