Dozens of former short-term rentals have gone up for sale since the ban was announced in October, and not one has sold
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The open house is all set up, but nobody’s coming. There’s plenty of foot traffic outside, but those are mostly Airbnb guests, wheeling bags in and out of the building, and they’re not here to buy a home — just to occupy one for a few days while they still can.
In October, the B.C. government announced a ban on short-term rentals that are not in the owner’s principal residence. These units are the most troublesome, because they take housing off the market for long-term residents.
The ban includes units like this one in downtown Victoria — condos that were previously grandfathered-in despite a ban introduced by the city in 2018. That “legal non-conforming” designation kept thousands of homes off the rental and condo market in Victoria alone, and by some estimates boosted their value by as much as $50,000 to 100,000 because of their substantial revenue-generating potential. Before the new legislation, that premium could be made back in a year or two — but now the clock is ticking down to May, when these condos’ ability to earn money as short-term rentals will evaporate. That’s leading to a rush of units hitting the market as owners try to get out of pricey investments that seem destined to plummet in value.
So far, listing prices haven’t reflected this new reality. Hence the empty open house.
“I think a lot of these owners are still in denial,” says real estate broker Dustin Miller.
Not all, though. Miller started hearing from some Airbnb owners within minutes of the government’s announcement that it would severely restrict short-term rentals.
“One of them decided to list right away — like, ‘Let’s get ahead of this, let’s sell,’” he recalls.
Guess they need to drop the price by the $50-100k it was inflated when they were allowed
More like 20-30% lower
Article specifically mentions the $50k-100k but I agree that is probably optimistic
I just moved my family to the island over the summer and even though we came from a VERY high cost of living area we were priced out of Victoria. Ended up moving to the Comox Valley and paid probably half what I would have for the same house down south. I do miss some of the amenities of the “big” city, but I will adjust.
not an option for everyone I know, but it was for me and I am glad I did it.