Home Truths: Implications of Short-Term Vacation Rentals on Victoria’s Housing Market
The new ‘collaborative consumer’ model espoused by Airbnb and others is based on leveraging the
existing housing market while generating income and retaining profits outside the formal regulatory and
taxation environment. This novel form of enterprise poses a challenge for local governments: (1) how to
address the severe shortage of shelter together with soaring prices of housing and rents in urban areas
and, (2) how to handle effectively and equitably the complex issue of regulating and taxing this new
transnational home-sharing enterprise.
A 2015 study by Chris Gibbs
1
of Ryerson University’s Ted Rogers School of Management and the
hospitality consulting group, HLT Advisory, showed the growth of Airbnb across Canada and its negative
impact on hoteliers particularly in four major cities: Toronto, Ottawa, Calgary and Vancouver. The
author concluded his findings with the recommendation that municipalities carefully consider regulatory
and licensing issues relating to the operation of Airbnb and other similar platforms.
This independent white paper explores the issue of home-sharing, in particular, the potential impact of
Airbnb on the rental housing market British Columbia’s capital city, Victoria. It draws on the timely
research of Karen Sawatzky, a former Victoria resident who has just completed her S.F.U. Master of
Urban Studies thesis, “Short-Term Consequences: Investigating the Nature, Extent and Rental Housing
Implications of Airbnb Listings in Vancouver.” Her thesis also considers the important research findings
of the Canadian Centre for Policy Alternatives on the impact of Airbnb in Toronto.
2
While this paper does not purport to be authoritative academic study, it nevertheless contemplates,
from a thoughtful citizen’s perspective, the overall changes that are taking place in the urban landscape
with a view to assessing the impact of home-sharing in a popular tourist destination. Today, the City of
Victoria has 955 active Airbnb listings, or one short-term vacation rental listing for every 87 inhabitants,
while the neighbourhood of James Bay has one Airbnb listing for every 60 residents
3
. In addition to
Victoria’s experience with the new lodging model, the author also considers the experience of local
governments expressed by members of the Union of B.C. Municipalities and Tourism Victoria. These
stakeholders try to balance the needs of permanent residents needing affordable, accessible places to
live, while recognizing the need to cater to tourists looking for accommodation be it in hotels and
motels, guest houses and bed-and-breakfasts as well as granny suites and condo units.
This paper provides no definitive answers. It does however create a foundation for citizens, urban
professionals, and decision-makers to discuss issues of home-sharing, the costs and benefits of short-
term rentals to individuals and to the community, and shed light on policy guidelines that may help
develop an appropriate regulatory framework to solve issues related to licensing, compliance, and
enforcement of a burgeoning new sector of the 21
st
century economy.
1
Dr. Chris Gibbs, “Airbnb…& The Impact on the Canadian Hotel Industry”, Ted Rogers School of Hospitality and
Tourism Management, (PowerPoint Presentation), June 2016.
http://www.ryerson.ca/content/dam/tedrogersschool/htm/documents/ResearchInstitute/CDN_Airbnb_Market_R
eport.pdf
2
Zohra Jamasi, Trish Hennessy, Nobody’s Business: Airbnb in Toronto, (Toronto: Canadian Centre for Policy
Alternatives), September 2016.
3
Data based on third-party analytics firm, Airdna (December 1, 2016) and Airbnb (December 31, 2016).