A new study conducted by researchers at McGill University has assessed the effects of municipal regulations on short-term rentals and their implications for housing affordability in Canada. The findings suggest that municipalities that impose restrictions on short-term rental practices, including rules on when and how primary residences can be used for short-term accommodations, experience lower rental rates compared to those without such regulations.
The study indicates that the positive outcomes generated by these restrictions do not only affect the municipalities directly implementing them, but also extend to neighbouring areas. This suggests a broader regional impact where the overall housing market benefits from increased stability and lower rental prices. The researchers refer to the regulation of short-term rentals as "low-hanging fruit" in the quest to enhance housing affordability, highlighting it as an achievable policy intervention.
As cities across Canada grapple with housing affordability issues, these findings may inform local policies aimed at alleviating the pressure on rental markets. By examining the relationship between rental regulations and housing costs, the study contributes valuable insights to the ongoing dialogue regarding housing strategies in urban centres.
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