Short-term rental restrictions reducing B.C. rents, study finds [Video]

A report led by the Canada Research Chair in Urban Governance says restrictions on short-term rentals in British Columbia have reduced rents by 5.7 per cent, saving tenants more than $600 million last year.

That figure is the result of municipal restrictions, in particular requirements that short-term rental units must be located within the operator’s principal residence.

The report, from chair David Wachsmuth and researchers at McGill University, says a new provincial regulation for B.C. communities with more than 10,000 residents has the power to carry similar savings across the province, easing affordability challenges.

The change took effect in May, requiring listings on platforms such as Airbnb and Vrbo to be located in the operator’s principal residence and one secondary suite.

Assuming the provincewide requirements have the same efficacy as existing municipal rules, Wachsmuth’s report says tenants in those cities should see rents decline by four per cent, amounting to a …