A new report from the Association of Interior REALTORS® (AoIR) urges the British Columbia government to reconsider its sweeping 2023 Short-Term Rental Accommodations Act, arguing for a more flexible and localized approach, especially for the province's Interior regions. The May 2025 report, titled "Unlocking Flexibility," contends that the current "one-size-fits-all" regulations are negatively impacting tourism-dependent communities and areas relying on STRs for essential worker accommodation, without significantly addressing the province's housing affordability crisis.

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STRs and the Housing Crisis: A Misplaced Focus?

A central argument of the AoIR report is that short-term rentals have a minimal impact on housing supply and affordability. Citing recent research from the Conference Board of Canada, the report states that less than one percentage point of the 30% increase in rents observed between 2016 and 2022 across 19 Canadian municipalities was attributable to increased Airbnb activity – equivalent to under $10.

The report highlights that while BC faces a significant housing shortage, estimated by the CMHC at 500,000 to 700,000 new units needed by 2030, the approximately 28,000 active STR listings in the province represent only about 4% of this required total. The AoIR suggests that the government's focus on STRs as a primary driver of the housing crisis is disproportionate and that broader supply-side measures are more critical.

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The Unintended Consequences and Economic Value of STRs

According to the AoIR, the current STR legislation is creating "negative consequences for seasonal economies, student renters and essential service delivery by medical and industry professionals" in the BC Interior. The report emphasizes that STRs provide numerous community and economic benefits:

• Economic Engine: STR activity in BC reportedly supports over 23,800 jobs and contributes approximately $2.7 billion to the provincial economy. Airbnb guests, for instance, spend an average of $275 on dining and $900 on local goods and services per stay.
• Tourism Support: In regions like the Thompson Okanagan and Kootenay Rockies, which generate over $3.7 billion in annual tourism spending, STRs are vital for accommodating visitors, especially during peak seasons or in areas with limited hotel capacity.
• Workforce Housing: STRs offer crucial flexible housing for travelling professionals like nurses, physicians, and infrastructure crews, particularly in remote or rural communities.
• Community Needs: They also serve as emergency housing during natural disasters and provide transitional accommodation for those between home sales or during renovations. For many hosts, STR income is also a way to offset rising living costs.

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AoIR's Recommendations for a More Flexible Framework

The report puts forth four key policy recommendations aimed at better aligning provincial legislation with local economic realities and housing needs in the BC Interior:

1. Return Zoning Autonomy to Local Governments: The AoIR advocates for allowing municipalities to formally designate "tourism zones" where STRs could operate exempt from the principal residence requirement, based on local land-use planning. They also suggest reducing the administrative burden for municipalities seeking such exemptions.
2. Enable STR Flexibility Near Essential Worksites: The report calls for provisions to allow STRs for essential workers near critical worksites (e.g., hospitals, resource developments), especially in regions with scarce rental or hotel options. A model similar to the Transit-Oriented Area (TOA) framework is proposed for defining these exemption zones.
3. Align STR Regulations with Seasonal Tourism Needs: To support tourism-dependent economies and address student housing, the AoIR recommends significantly shortening the implementation timelines for municipal opt-out exemptions. Furthermore, they propose a seasonal STR exemption framework (e.g., May to August) that would allow non-principal residences to operate as STRs during peak tourism months, potentially freeing them up for student rentals during the academic year.
4. Expand the Strata Hotel and Fractional Ownership Exemption: The report argues that current exemption criteria for strata hotels and fractional ownership properties are too narrow. It calls for updates to exempt purpose-built STR properties based on factors like their original zoning, marketing, and building functionality, rather than solely on limited criteria such as the presence of a front-desk service.

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A Call for Nuance

In conclusion, the Association of Interior REALTORS®' report is a strong call for a more nuanced and flexible approach to STR regulation in British Columbia. It argues that while the goal of increasing long-term housing supply is critical, the current blanket restrictions on STRs may be causing undue economic harm in the Interior without delivering significant improvements in housing affordability. The AoIR champions a system where local governments have more say in managing STRs to balance tourism, economic development, and diverse housing needs within their communities.

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Source: AoIR