B.C.’s Short-Term Rental Rules Reshape Housing — But at What Cost to Tourism and Tenant Relief ?

VICTORIA (Rajeev Sharma)— One year after British Columbia’s landmark short-term rental regulations took effect, the province finds itself balancing two competing realities: a modest easing in housing pressures and growing concern over the collateral damage to tourism and affordability.

At the heart of the policy is a simple goal — turn vacation rentals into permanent homes. The province’s 2024 rules limit short-term rentals to principal residences or attached units like basement suites and laneway houses. Hosts had until May 1 to register, or risk steep $5,000-per-day fines and delisting from rental platforms.

Housing Minister Ravi Kahlon is calling it a win. Listings on Airbnb and VRBO dropped by thousands. Victoria saw a 24 per cent drop in full-unit rentals. Vancouver dipped by 22 per cent. Cities report higher vacancy rates and more long-term listings.

But if the goal was meaningful rent relief, the results are mixed. Vancouver rents are sliding, down 5.7 per cent in March, and Toronto rents have fallen for 14 straight months. Yet Victoria — despite being a focus of the crackdown — saw a three per cent rent hike that same month. And in the long view, rents remain sky-high across British Columbia.

“There’s a temptation to say: the rules are working,” said Andy Yan, an urban planner at Simon Fraser University. “But housing markets are complex systems. You can’t credit one policy for all changes.”

Tenants aren’t feeling a windfall either. “Our members still face regular rent increases,” said Will Gladman from the Vancouver Tenants Union. “Yes, it’s good that former Airbnb units are becoming homes. But it doesn’t mean those homes are affordable.”

Meanwhile, the tourism sector is absorbing the impact. With thousands of short-term units off the market, hotel prices are rising and visitor options shrinking — especially in regions with already limited accommodations. Brendon Ogmundson of the B.C. Real Estate Association warned the new rules may be hurting the province’s hospitality economy more than they’re helping renters. “It’s more expensive to visit B.C. now. And there’s less choice. That has a ripple effect.”

On the ground, residents like Victoria’s Marv Gandall are seeing a shift. His building, once plagued by short-term rental chaos — frequent strangers, broken elevators, missing packages — has calmed. “It’s better,” he said, “but Airbnbs haven’t disappeared completely. People are still finding ways to cheat the system.”

Premier David Eby says the rules may eventually be relaxed — once vacancy rates improve and rent levels stabilize. But for now, the government is betting big on regulation, insisting it’s the right move to return homes to people who live in them.

Yet as B.C. moves forward, questions remain: Can housing supply be fixed without hurting tourism? Are rules enough to make rent truly affordable? And will other provinces take the same gamble?