BC’s Bold Move: Turning Short Term Rentals into Long Term Homes

The short-term rental market landscape has changed rapidly in recent years, and B.C. is no exception. The hike in online platforms such as Airbnb, VRBO, Expedia, and others has led to a boom in vacation rentals across Vancouver and throughout British Columbia. While this trend has been great for tourism and property investors, it has also created a growing concern: fewer homes are available for full-time residents. 

To tackle this issue, the B.C. government has introduced bold legislation aimed at reclaiming thousands of units from the short-term rental market and converting them into long-term housing. This move, announced in early October 2023, is part of a larger strategy to ease the province’s ongoing housing crisis. 

What Are Short-Term Rentals? 

Short-term rentals refer to properties that are rented for less than 90 consecutive days — often by tourists or business travellers. Many homeowners have turned their condos, basement suites, and secondary homes into Airbnb-style listings to earn extra income. In tourist-heavy cities like Vancouver, Victoria, Kelowna, and Whistler, short-term rentals have become a popular business model. 

But as more properties were taken off the long-term rental market and turned into short stays, vacancy rates dropped and rent prices rose. This made it harder for local families, workers, and students to find stable, affordable housing. 

B.C. Government’s New Rules: What’s Changing? 

In early October 2023, Premier David Eby and Housing Minister Ravi Kahlon introduced new legislation to strictly regulate short-term rentals across the province. The goal? Put homes back into the hands of local residents. 

Here are the key changes: 

Why This Matters for Vancouver and Beyond 

Vancouver has some of the highest housing costs in Canada. With limited space and growing demand, every available unit counts. According to a provincial report, over 16,000 homes were being used as short-term rentals across B.C. in 2023 — many of them located in high-demand urban areas. 

By converting even a portion of those units into long-term rentals, the province hopes to: 

This approach is already being praised by housing advocates and urban planners. Turning short-term rentals into permanent homes is seen as a fast and effective way to add supply without the long delays of new construction. 

The Impact on Property Owners 

While some property owners and investors have raised concerns about income loss, the government argues that the broader community benefits outweigh the private business interests. 

Owners who previously relied on vacation rental income may need to adjust their plans. However, long-term rental options are still available — and with rental demand so high, landlords can still earn steady income from full-time tenants. 

Moreover, exemptions exist in certain cases, such as for: 

What This Means for Renters and Buyers 

For renters, the legislation offers hope. As more units return to the long-term market, competition may ease, and rent prices could level out. This is especially good news for students, young professionals, and families who’ve struggled to find housing near work, transit, or schools. 

For buyers, especially investors looking to enter the Vancouver real estate market, the short-term rental restrictions are a reminder to plan with a long-term lens. Properties in family-friendly neighbourhoods or near transit hubs may see higher demand as renters shift away from short-term options.

Conclusion

British Columbia’s bold decision to crack down on short-term rentals marks a turning point in how housing is managed in the province. While short-term rental platforms once offered convenience and flexibility, they also contributed to a tighter, more expensive housing market. 

By shifting focus back to long-term housing, the government is hoping to restore making it easier for locals to find and keep a home.