As Ottawa eyes short-term rental limits, Airbnb says it won’t solve housing crisis

The federal government plans to push ahead with its crackdown on short-term rentals in Canada in an effort to alleviate the country’s housing crisis, but Airbnb says home-sharing regulations are not the solution.

As part of the 2024 federal budget that was unveiled Tuesday, Ottawa has recommitted to spending $50 million to help municipalities limit the number of short-term rentals.

According to the budget, the short-term rental enforcement fund – which was also proposed in the 2023 fall economic statement – will support the work of provinces and cities that have already taken action to free up listings on platforms, such as Airbnb and Vrbo, for the long-term market.

The budget document did not expand on how exactly this fund will be used, but said “the government is currently engaging with stakeholders to design a program that will be responsive to municipal needs, and will announcefurther details later this year.”

The Department of Finance did not respond by the time of publication to Global News’ request for more details on when the federal government plans to launch the short-term enforcement fund and how that money will be used.

Starting this year, Ottawa has already enforced a new measure that was proposed in the 2023 fall economic statement, denying income tax deductions for people leasing short-term properties that do not comply with provincial and municipal laws.

At least five provinces — British Columbia, Quebec, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island — have short-term rental laws in place or in development, according to Airbnb.

Some provinces, like British Columbia and Quebec, have recently put in place strict rules on short-term rentals with hefty fines amid growing concerns about illegal