Introduction
In the midst of Quebec’s ongoing housing crisis, a contentious issue has emerged: the impact of short-term rentals on the apartment supply. This debate has intensified with claims that platforms like Airbnb are exacerbating the housing shortage.
Eric Amoris, a seasoned reporter on Quebec’s housing situation, provides a detailed fact-check on this pressing matter. Here’s a comprehensive look at the role of short-term rentals in the current housing crisis, based on Amoris’s findings.
Pre-Pandemic Surge in Short-Term Rentals
Prior to the pandemic, there was a notable increase in the number of properties being converted into short-term rentals. Many landlords, enticed by the prospect of higher profits, evicted long-term tenants to transform their buildings into de facto hotels.
The financial allure was clear: instead of earning $1,200 a month from a tenant, landlords could make $4,000 a month through short-term rentals. This trend led to a surge in evictions, contributing significantly to the housing shortage.
Pandemic-Induced Reversal
The outbreak of COVID-19 brought tourism to a standstill, dramatically affecting the short-term rental market. With the decline in tourism, many of these short-term rental units were temporarily returned to the long-term rental market. This shift provided a brief respite in the housing supply crisis as properties that had been converted for short-term use were again available for long-term tenants.
Post-Pandemic Trends and Regulations
As tourism has rebounded post-pandemic, the trend of converting housing units into short-term rentals is resurging. However, Quebec has implemented stricter regulations to mitigate this issue. In most of Montreal’s boroughs, only primary residences can be listed on platforms like Airbnb, with few exceptions.
Landlords and owners must now register with the province and include their registration number on listings, facing fines up to $50,000 for non-compliance. Despite these measures, some property owners still circumvent the rules, posing ongoing enforcement challenges.
Impact on the Housing Crisis
The role of short-term rentals in Quebec’s housing crisis is multifaceted. While they are not the sole cause, they certainly contribute to the problem. The primary reason for homelessness in Quebec is evictions, which are often linked to the conversion of long-term rental units into short-term rentals.
The vacancy rate in Quebec is alarmingly low, and the shortage of large units suitable for families exacerbates the situation. By reducing the number of available long-term rental units, short-term rentals contribute to the housing supply squeeze.
Comparative Measures: Barcelona and New York
In addressing the issue of short-term rentals, different cities have taken varying approaches. Both Barcelona and New York have implemented outright bans on short-term rentals. These measures are designed to protect the housing supply and ensure that residential units are available for long-term tenants.
While Montreal has not adopted such stringent measures, the current regulations aim to strike a balance by allowing home sharing without permitting the operation of short-term rentals as a business.
Expert Opinions and Recommendations
Housing experts agree that while home sharing can have its benefits, the operation of short-term rentals as a business should be prohibited. This distinction is crucial in maintaining a balance between accommodating tourists and ensuring an adequate supply of long-term rental units. Experts believe that Montreal’s current regulatory framework, if effectively enforced, can help mitigate the negative impact of short-term rentals on the housing market.
Conclusion
The issue of short-term rentals in Quebec is a complex one, intricately linked to the broader housing crisis. While they are not the primary cause of the crisis, short-term rentals do contribute to the scarcity of long-term rental units. Quebec’s regulatory measures represent a step in the right direction, aiming to balance the interests of homeowners, tenants, and tourists.
Effective enforcement of these regulations is essential to prevent the exacerbation of the housing crisis and ensure that housing remains accessible for long-term residents. As Montreal navigates this challenge, the experiences of other cities like Barcelona and New York offer valuable insights into potential solutions.
