BC Government Cracks Down on Short Term Rentals Like Airbnb | Canadian real estate news

The BC government has introduced legislation to ban short term rentals like Airbnb.
𝗟𝗲𝘁 𝗺𝗲 𝗳𝗶𝗻𝗱 𝘆𝗼𝘂 𝘁𝗵𝗲 𝗽𝗲𝗿𝗳𝗲𝗰𝘁 𝗥𝗲𝗮𝗹𝘁𝗼𝗿!
📆 𝗕𝗼𝗼𝗸 𝗮 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗺𝗲! calendly.com/matthewpfeifer
This is your weekly look at the Canadian real estate news.
𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗖𝗮𝗻𝗮𝗱𝗶𝗮𝗻 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗨𝗽𝗱𝗮𝘁𝗲: • Canadian Real Estate M...
𝗗𝗼𝗻'𝘁 𝗳𝗼𝗿𝗴𝗲𝘁 𝘁𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗺𝘆 𝗰𝗵𝗮𝗻𝗻𝗲𝗹: / @baldprairierealestate
𝗠𝗮𝘁𝘁𝗵𝗲𝘄 𝗣𝗳𝗲𝗶𝗳𝗲𝗿'𝘀 𝗖𝗼𝗻𝘁𝗮𝗰𝘁 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻:
🔗 linktr.ee/baldprairierealestate
➡️ / baldprairierealestate
➡️ baldprairierealestate
📞 [phone]
📧 [e-mail]
Royal LePage Regina Realty
𝗦𝗼𝘂𝗿𝗰𝗲𝘀:
www.cp24.com/news/toronto-cit...
rentals.ca/national-rent-report
www.cmhc-schl.gc.ca/media-new...
globalnews.ca/news/10027665/b...
financialpost.com/news/econom...
financialpost.com/real-estate...
My name is Matthew Pfeifer, and this is Bald Prairie Real estate, a Canadian real estate channel. I am a REALTOR® in Regina Saskatchewan working for Royal LePage Regina Realty. In over 10 years working as a real estate agent, I have seen both ups and downs in the market. But there is no real estate market that you cannot buy or sell a house in. Often the media tries to present a Canadian real estate market, or they talk about the real estate market in Canada as if there is a national real estate market. The real estate market in Canada is very regionalized and local, which is why my monthly Canadian real estate market does not just look at the national statistics, or updates that cover Vancouver and Toronto only, but other individual cities like Calgary, Halifax, Montreal and more. The very local aspect of the Canadian real estate market is why it can be so hard for governments to craft policy for the "Canadian" real estate market. Being from Regina, me and my team specialize in the Regina real estate market and have a much different approach and outlook on Canadian real estate than a REALTOR® from a larger market like Toronto or Vancouver. I cover first-time home buyer topics, tips for selling your home, how to buy a house in Canada, monthly Canadian housing market updates and weekly Canadian real estate news recaps.
#realestate #canadianrealestate #airbnb

[@BaldPrairieRealEstate]

Do you think this new legislation from the BC government will have a major impact on their housing shortage?

[@tyrellboake]

No, it will not. Why so they keep trying that bandaids? Just build more houses already.

[@SzymonStas]

Yeah this will affect our housing problems, not by adding a major amount of supply but by changing investor sentiment. 50% of new condos are owned by investors here in BC. Investors are buying these places purely based on speculation. It's not a good investment to rent it out long term, but investors are expecting a price appreciation. So what happens to demand when you signal to investors that this is not an investor friendly market? If investors are beating out 50% of locals trying to buy condos, what does that do to prices? I predict that we'll see a drop off of investor demand, especially given that the only option for investors is long-term rentals and we have exceptional tenancy laws that protect renters from the risk that investors are exposing themselves too, mainly rising interest rates. So we'll see a drop in demand, but investors in short term rentals will also be selling off their condos into a market with already weak demand from high interest rates locking out buyers from big mortgages. The SNLR will drop off even further than it already has, and 6 months later we'll see month over month prices decline in step with the SNLR, as they always do. The Vancouver market is rampant with speculation, and speculation creates volatility. Flushing out some of the STR investors from the market will drop prices enough to flush out the rest of the speculators.

[@BaldPrairieRealEstate]

@@tyrellboake because Band-Aid solutions are "easier" than actually putting in the long-term effort needed. Governments think in election cycle timelines.

[@BaldPrairieRealEstate]

@@SzymonStas with how investor unfriendly BC is becoming we are already seeing significant capital going to other areas of Canada instead of staying BC.

[@tyrellboake]

@@BaldPrairieRealEstate My thoughts exactly 👍🏼

[@maximusfuscus]

The core problem is also crazy rate of immigration. Just say it. Building that much is simply impossible. I am an immigrant.

[@BaldPrairieRealEstate]

If we cannot keep construction up with the pace of population growth it's going to continue to make the problems worse.

[@dougpatterson7494]

⁠@@BaldPrairieRealEstateis there any chance of having temporary foreign workers build housing in Canada and Australia? China has millions of extra homes and have built excess infrastructure. Canada could employ some of those workers on a temporary basis to increase supply of housing without increasing long term demand as much because these workers would go home after projects are completed. Obviously I’m in favour of treating them much better than Chinese labourers who built the transcontinental railways were but I think this is a “two birds, one stone” type of situation.

[@BaldPrairieRealEstate]

@@dougpatterson7494 that's an interesting idea. At the end of the day until we reduce taxes and red tape we aren't going to match demand.

[@rachelk8368]

28,000 is still better than nothing when we will be down 500,000 across the country. Quicker way to bring more inventory to the market. I am sure other provinces will follow.

[@BaldPrairieRealEstate]

Better than nothing but really not going to make much of a dent most likely. Of those 28,000 a larger percentage is going to be exempt because they will fit under the exemptions like a primary residence, secondary suite or in a small community. It also doesn't ban them, just fines. Some might just consider that the cost of business. Much like vacant home taxes have been vastly overestimated I expect this will be similar.

[@Pineconepicker1]

In many cases, Airbnb violates zoning bylaws and bills taxpayers for repairs. That's why the new law. Many cities are doing the same thing across Canada.

[@BaldPrairieRealEstate]

How is AirBnB billing taxpayers for repairs?

[@kitt2000car]

Iam really surprised hotel and motels did not kick up a big stink when they started.

[@BaldPrairieRealEstate]

Oh they did and it's the lobbying of the hotels that was one of the primary drivers of this new policy.

[@judylyoness2290]

Of course not. My Airbnb hosts short-term workers and students who need alternatives to expensive hotels. I also get some people passing through. The motels and hotels where I live are horrible and expensive. They would be upset if they could not find comfortable accommodations at a reasonable price.

[@stuart6478]

ha ha hotels are CHEAPER

[@anutan8769]

Legal non conforming units should be left out of it. Property rights stay with owners

[@TUDO0007]

Yes you’re forgetting that homes are residential property they’re not commercial property so which means I can’t operate it like commercial property, that’s they have that so called zoning.

[@oddassembler]

Glad you made this vid

[@BaldPrairieRealEstate]

Thanks for watching!

[@TUDO0007]

The real problem is the immigration and corporates investors

[@BaldPrairieRealEstate]

Population growth outpacing supply is the core issue for sure. Your large corporate style investors are the ones who buy and build the multifamily purpose built rentals we need badly right now.

[@TUDO0007]

@@BaldPrairieRealEstate we don’t need affordable rental housing, we need place to call home, to live to work and raise a family and worrying about greedy landlords keep raising the rent or evicted any time they want. The corporates investors and other investors are buying up all supplies to push the price so high to a crisis level.

[@BaldPrairieRealEstate]

@@TUDO0007 we don't need affordable rental housing? There's a large number of people, including myself, that would strongly disagree with that. There will always be a percentage of people who will rent for a various number of reasons. Of course I want to see as many people who want to buy a home be able to do so. But for those that need to rent I want there to be affordable options. If there is enough supply of rental properties available then landlords cannot raise rents because tenants will have the availability to just move to another more affordable property.

[@harryripetomatoe]

Good points. that's Econ 101, not too hard to figure out. But reality in Canada I guess. Should pay attention to the success on housing supply in Japan.@@BaldPrairieRealEstate

[@harryripetomatoe]

it's a free country we live in, last time I checked.@@TUDO0007

[@newworld6474]

Thanks

[@BaldPrairieRealEstate]

Thanks for watching

[@MorethanGUNZ]

Love your content!

[@BaldPrairieRealEstate]

Thank you!! Much appreciated!

[@bat2275]

Hotel industry has these politicians in their pockets worldwide. This is all about reducing competition for hotels.

[@BaldPrairieRealEstate]

Watch what happens to hotel prices and how long it takes for people to complain about that.

[@misssunshine8469]

Yes this makes sense and its all a big scam to line the big corps pockets as always and push the regular people to work all day every day to meet basic cost of living.

[@tyrellboake]

Absolutely.

[@dustincammer7953]

@@BaldPrairieRealEstateyeah, don’t care about people complaining about hotel prices.

[@BaldPrairieRealEstate]

@@dustincammer7953 I'm sure you would if you traveled or if less tourism starts impacting the overall economy

[@brentandlizscott140]

Kelowna has STR rules and zoning already…..does the provincial legislation over ride their zoning for STR?

[@BaldPrairieRealEstate]

That is a great question. The idea was that the new rules are to work in parallel or strengthen existing municipal rules.

[@SzymonStas]

I am currently looking to buy my first home in Vancouver. In the 2 buildings I'm looking at, there are 6 apartments for sale in both of them, 8 Airbnbs in one, and 10 in the other. What this means is that in some submarkets in downtown Vancouver, there could be a doubling of inventory over the next few months. I don't know much about anything, but it seems to me like doubling the supply of housing on the market might put some downward pressure on prices.

[@BaldPrairieRealEstate]

Yes a doubling in supply will generally put downward pressure on prices. But I am not sure you will see all of those places in each building all of the sudden come up for sale. Some will be kept as short-term rentals, others will be converted to long-term rentals, and some will probably be sold.

[@SzymonStas]

@@BaldPrairieRealEstate Very few people will convert to long term rental. It’s not worth it here in Vancouver. You will almost certainly be cash flow negative, even if you bought years ago. Some folks might try to ignore the law keep their rentals going, but neighbours don’t like Airbnbs and I expect they’ll get reported pretty quick. Most people will list. I’m just going through Airbnb and checking the listing counts in areas, and some areas of downtown have 3 times as many Airbnb listings vs MLS listings. The downtown area is already in a buyers market, and this is gearing up to be the buying opportunity of a lifetime.

[@BaldPrairieRealEstate]

@@SzymonStas I wish you the best of luck with this expected buying opportunity of a lifetime.

[@harryripetomatoe]

Most will become a grey area MTR 30 day plus month to month rental. @@BaldPrairieRealEstate

[@stuart6478]

it's not great news. I don't want everyone buying. hopefully people are demoralized enough to wait until no one wants anything.

[@stuart6478]

basically best news in years

[@BaldPrairieRealEstate]

Why is that?

[@harryripetomatoe]

Check out Japans housing unit starts every year!! The zoning and red tape is the problem here, not Airbnb's. Cut the tape and let them build!!

[@BaldPrairieRealEstate]

Exactly

[@stuart6478]

there's an abundance of supply. there's a shortage of availability. put the red tape up. time to drain the boomers and stop all these gen x scams

[@denesbastos2001]

Do you know the number of available rentals vs the number of available airBNBs? I think that’s a bette comparison than with the number or homes as most of them a owned or already rented out. It would be nice to know how much it would increase rental availability in percentage.

[@BaldPrairieRealEstate]

There are roughly 700,000 rental properties in BC compared to the 28,000 short term rentals.

[@denesbastos2001]

@@BaldPrairieRealEstate I mean currently available for rent, that could give us a clue on how much it could help, not sure if that number is available

[@BaldPrairieRealEstate]

@@denesbastos2001 sorry besides trying to do a rough approximation by looking at what is available online which I don't think would be accurate I don't have a good way to get that information but I will keep digging.

[@misssunshine8469]

Honestly, I enjoy using air bnbs vs hotels and I think that this is not the main issue in terms of housing supply and affordability. No matter which way you look at it, it does not solve the issue... I do think that maybe there should be a restriction on how many air bnbs someone owns but that's about it but banning them entirely is just a distraction from the real issues that they won't be able to address and don't want to. 28000 short term rentals forced to become long term rentals or sell to another landlord. People can't even enter the market to buy at this point anymore so it solves nothing except providing more expensive long term rentals and all those renters constantly complaining about rental prices and landlords anyways. Clearly there was demand for all those short term rentals bringing tourism in from outside the province. There are reasons people enjoy the air bnb experience over hotels.

[@BaldPrairieRealEstate]

I usually look at both hotel and short term rentals when I travel and have chosen both in the past. There are benefits and drawbacks to both.

[@misssunshine8469]

​@@BaldPrairieRealEstate I respect your point of view

[@BaldPrairieRealEstate]

@@misssunshine8469 thank you

[@harryripetomatoe]

This BC STR act will definitely force a lot of adjustment and I sense that STR's will come back stronger and better. If hotel rooms go up in price the demand for on market or black market STR's will be higher than before. You know what the Econ 101 supply and demand curve says.

[@misssunshine8469]

@@harryripetomatoe I think if and once they implement the change, they aren't going to be changing it back anytime soon. I think its the every day expenses that has causes people to pull back on their vacation spending. Its harder to rent your air bnb on a "black market" and there will be fines for renting out.

[@mtransport2144]

Finally

[@BaldPrairieRealEstate]

So you see this as a positive change?

[@anutan8769]

Goodbye to NDP