B.C. residents began selling real estate en masse
The reason is the new law on short-term rentals.
The founder of luxury real estate rental agency Keys to Kelowna Properties Inc. Deanna Steele spoke about the mass sale of rental properties among newcomers. The short-term rental market has long been a gold mine for many B.C. residents, but with the passage of new legislation, that vein may be drying up. While experienced players are taking a wait-and-see approach, newcomers are choosing to sell a potentially unprofitable asset now.
"Young" investors are eager to get rid of real estate. But Brandon Ogmundson, chief economist for the B.C. Real Estate Association, says it's too early to say if the new rules will have a really serious impact on the short-term rental market.
What's the law?
The law on short-term rentals was announced in mid-October, and will come into force gradually until the end of 2024. We wrote about it in detail here, and in brief the main changes are as follows:
- Short-term rental platforms (such as Airbnb) must now share data with municipalities to improve local enforcement — increasing fines for hosts who violate local municipal rules.
- All short-term rental platforms will be required to include license details and owner registration numbers in advertisements, and promptly remove advertisements without this information.
- Short-term rentals will be limited to the master's primary residence plus one additional suite or additional dwelling unit.
Property owners' reactions
Panic among the most wary property owners began almost immediately. A Kelowna realtor told reporters she counted 250 homes and 392 condominiums for sale in the Central Okanagan after the provincial government's announcement — though usually there are far fewer listings at this time of year.
According to Statistics Canada, between 2015 and 2018 alone, the amount of income earned by private home owners for short-term rentals rose to CA$ 2.2 billion, a nearly tenfold jump in just a three-year period.
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