Is Airbnb Really Causing the Housing Crisis?

The reality of the situation is that landlords generally feel safer using Airbnb rather than rental boards like
A chorus of Canadian real estate market experts and landlords suggest that these entities are a disaster for residential property owners.  Critics will assert that players in the short-term rental market caused the challenges renters face today. Others point to studies, like one report from the Conference Board of Canada, that suggest activity levels through Airbnb and its industry rivals did not create the astronomical rents recorded in today’s climate.

“We tested for a causal link between Airbnb activity and rent increases between 2016 and 2023 across 330 neighbourhoods in 19 Canadian cities,” the Conference Board study stated. “We find no compelling evidence that the level of Airbnb activity had a meaningful impact on rents.

Of course, despite the idea of two sides having a story, media reports suggest that the federal government is looking at potentially limiting how many Airbnbs will be allowed in the housing market. 

Some critics will purport that the rental boards, like the Landlord and Tenant Board in BC and Ontario, are biased against landlords. And based on various reports, tenants often abuse the system because they know the officials will rule against landlords.

The other facet in this discussion surrounding Airbnb’s impact on the housing market is that many landlords no longer consider this to be a profitable endeavour. There is tremendous market saturation, operational costs have surged, and local regulations are stifling landlords. Additionally, landlords are taking advantage of the various platforms available in the open market.

One more thing:  A growing number of polls have found that individuals often prefer hotels, considering that Airbnb has become too costly for the typical person. This is a complete turnaround from just a few years ago when Airbnb first launched. Users would find it far cheaper and more convenient than a traditional hotel – the hotel lobby responded through innovation and lobbying public policymakers.

Ultimately, more landlords are ditching the short-term rental platform, meaning fewer listings exist on Airbnb and other comparable websites.

And yet, rents are still rising in Toronto, Vancouver, and other places across the country.