How Toronto's New Airbnb Rules will Impact the Rental Market

  • Remax-Condos-Plus
  • 10 January 2018

On December 7th, the City of Toronto passed new changes to reduce the number of Airbnb rental units and force owners to rent them out as long-term rentals. The rules will go into effect July 1st. The focus, of course, is on investor condos downtown. This is just a PR and vote-appeasing move that will have little impacto n the condo rental market downtown

Here are the real facts:

  • Airbnb rentals downtown in the third week in January to rent, were just over 300 units
  • The number of condo rental units downtown is about 30,000
  • The vacancy rate for downtown condos is under 1%

So, what will forcing these units into the long term rental pool achieve? The simple answer, nothing. The City just needs to build more condos to satisfy this market. But, oh yes, the Provincial Government just introduced rent controls.