BC government ponders short-term rental exemptions for "major event" areas

BC government ponders short-term rental exemptions for "major event" accommodation areas

Airbnb app (left) and the 2026 FIFA World Cup Vancouver logo (right). (Shutterstock | FIFA)

The BC legislature is in the process of considering major amendments to the governing BC NDP party’s week-old sweeping proposal to better regulate short-term rentals and push more property owners into sending their homes back into the long-term rental market for local residents.

Today, the opposition BC United party introduced several proposed amendments to the BC NDP’s bill, including adding an exemption for designated “major event accommodation areas,” which is almost certain to include downtown Vancouver — the location of Vancouver Convention Centre, BC Place Stadium, and Rogers Arena.

In an email to Daily Hive Urbanized upon inquiry, BC United states the amendment would provide a time-limited exemption to any major event area in the province, such as when Vancouver co-hosts the 2026 FIFA World Cup.

You might also like:

“This is to avoid surges in black market rentals and preserve affordable travel options for families,” BC United told Daily Hive Urbanized.

“While this could certainly apply to parts of Vancouver for a limited time only, it would be up to the government to designate the geography and time limit by regulation.”

The definition of “major event accommodation area” is modelled under the same framework used by the BC NDP when they introduced the Major Events Municipal and Regional District Tax (Major Events MRDT), which is essentially an additional hotel room tax to help municipal and regional governments support the direct costs of hosting major tourism-generating events. This Major Events MRDT is currently in effect within the City of Vancouver to support the municipal government’s World Cup costs.

Through platforms such as Airbnb and Vrbo, downtown Vancouver has by far BC’s single largest concentration of short-term rentals, where demand for overnight accommodations from tourists can be expected to be the greatest.

At the same time, the BC NDP’s proposed legislation aims to curb short-term rental supply within BC’s largest communities, where housing affordability and supply issues are most acute.

“Short-term rentals will continue to be available for people in British Columbia. What we have done is strike a balance,” said BC Minister of Housing Ravi Kahlon during today’s question period in the legislature.

“We’re saying that we need that housing stock for people that need it in British Columbia. Those that have an extra bedroom suite or want to rent out a garden suite in their backyard can continue to do that. We’re finding a balance to ensure that tourism can continue to happen. At the same time, we have that valuable housing stock available for people in British Columbia.”

Kahlon argued the proposed legislation outlines that some types of tourism-dependent communities can continue to have short-term rentals, including resort municipalities such as Whistler and Sun Peaks.

According to the provincial government, there are currently about 28,000 short-term rental listings across BC, which represents a year-over-year increase of 20% from 2022. Also, various research shows over 16,000 “entire homes” have been pulled from the long-term rental housing market.

The BC NDP’s proposed legislation is particularly intended to target people who operate multiple short-term rental properties akin to a miniature hotel. The provincial government asserts investors dominate the short-term rental market.

All the while, the propagation of short-term rentals over the past decade has filled much of the overnight accommodations demand that would otherwise be filled by hotel supply. It has also helped offset the impact of Metro Vancouver’s dwindling hotel supply, particularly within Vancouver, where hotels have been redeveloped or converted into housing and most recently acquired by governments for pandemic-time rapid housing.

Destination Vancouver, the local tourism bureau, estimates 20,000 new additional hotel rooms are needed within Metro Vancouver over the coming decades, including 10,000 within Vancouver. Earlier this year, they released a study that estimated seasonal hotel room shortages would begin in the 2026 peak season. This forecast was made well before the short-term rental regulations were proposed.

Tourism officials have warned that the dwindling overnight accommodations supply will send hotel room rates soaring and erode Vancouver’s ability to competitively attract tourism-generating major concerts, conferences, and other events, including sporting events.

Some concerns have also been raised that the short-term rentals legislation will reduce comparatively more affordable accommodation options for people seeking medical treatment in Metro Vancouver, where many major provincial healthcare facilities, including cancer treatment, are situated.

BC United’s proposed amendments also include requesting an exemption for “accommodation for travel related to medical procedures” and adjusting the definition of a short-term rental as a property that is used for less than 30 consecutive days instead of BC NDP’s proposed timeframe of less than 90 consecutive days.

As well, the proposed amendments by BC United would enable a short-term rental host to have one short-term rental in addition to their own primary residence.

If approved, the BC NDP’s legislation will phased in throughout 2024.

You might also like: