Deana Steele says she has never seen as many condo and vacation homes for sale as there are in Kelowna, B.C. right now.
As the glut of short-term rentals grew, nightly average occupancy rates fell, and so did the amount of revenue investors were able to generate.“Our occupancy just bombed, just because of the number of new listings,” Steele said. But in 2023, some of the shine has worn off short-term rentals as an investment strategy. It’s partly because various levels of government are increasingly imposing restrictions aimed at curbing the practice, such as banning short-term rentals where the owner doesn’t reside in the property.
“But with higher interest rates and weaker housing market, prices might not go up by nearly as much as they once did. They might even go down.”Heath added that anyone buying an investment property in Canada is required to make a minimum 20 per cent down payment before being approved for a loan. Avery Birch, founder of 365 Experience Inc., a rental property management company in Halifax, acknowledged the short-term rental market has been in flux recently.
“I think it’s actually a safer bet for the property, especially in times of craziness, because we’re not locked into any pricing,” Birch said.Story continues below advertisement