The popularity of short-term rentals (STRs) has exploded in recent years, and Ontario is no exception.
According to the latest available data, there are 6,063 STR listings on Airbnb in Toronto alone, 600 of which are concentrated within just three condo buildings.
But it comes at a well-known cost: Single-family homes that were planned, approved, and built as residential units are being converted into short-term accommodations, making it harder for renters and potential homeowners to find affordable, accessible housing.
Additionally, some landlords are removing their long-term tenants in favour of more profitable, less regulated STRs.
This trend is not only affecting the rental market but also the cohesion and character of some neighbourhoods, according to advocacy groups such as Fairbnb Canada, who are pushing for stricter regulation and accountability within the STR industry. They advocate for more comprehensive monitoring whether property management companies or hosts of STRs are licensed and operating legitimately.
Toronto is not the only city facing this issue. Across Ontario, cities and towns are regulating or considering regulating short-term rentals due to housing shortages and affordability concerns.
Property managers specializing in single-family and/or multi-family rentals may benefit from increased oversight of the STR industry, as it may encourage some investors to stop using Airbnb and return to long-term rentals, for which they would need professional assistance.
More rental market headlines
Ottawa looks at limiting number of Airbnbs to free up rentals – The Globe and Mail
Why are young Canadians moving from Ontario to Alberta? – PayProp
