Airbnb not behind Canadian residential rent increases, study says

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Airbnb not behind Canadian residential rent increases, study says
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Conference Board of Canada study contradicts recent research from McGill.

Rents in Canada have gone up, along with the growth of Airbnb businesses, but there’s little evidence that the two are connected, a new survey from the Conference Board of Canada finds.

It concluded that, for every addition of one dedicated short-term rental per 100 rental units in a neighbourhood, rents increased an average of $49 for that neighbourhood. “We find no compelling evidence that the level of Airbnb activity had a meaningful impact on rents. Out of the 30 per cent increase in rents observed in our sample of neighbourhoods between 2016 and 2022, at most less than 1 percentage point, or just under $10, can be attributed to increased Airbnb activity.”

“The key question is whether higher Airbnb activity is causing higher rents in Canada and contributing to a worsening of rental affordability, or if both higher rents and higher Airbnb activity are driven by other factors, such as proximity to amenities like restaurants, public transit, and parks, which would increase desirability for both long- and short-term renters.”

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