A new study has confirmed what the City of Victoria says it already knew — short-term rentals are contributing to the housing affordability crisis.
The researchers said short-term rentals took another 16,810 housing units out of B.C.’s long-term rental market in June, tightening up the rental market and driving up rental rates. The new Victoria regulations included increasing fines for operating without a business licence to $1,000 from $500, and to $500 from $250 for those who advertise without a licence; doubling the fine for contravening allowable use to $700; and increasing the cost of a licence for a non-principal residence to $2,500 from $1,000.
Across the Island, the number of short-term-rental listings grew 17.5 per cent to 6,310 over the last year, while host revenue grew two per cent to $29.6 million. For every new unit built, at least five are lost to excessive rent increases, renovation, redevelopment and conversion to other uses such as short-term rentals, Hodgins said.