In brief
- The regulation of short-term rentals is proving effective in containing rent increases, according to McGill University.
- Across 309 Canadian neighbourhoods studied from 2017 to 2022, monthly rents decreased by 24 to 55 dollars after the introduction of the rules.
- However, Airbnb regulation faces challenges due to the opacity of the platform’s data and derisory fines.
Faced with the widespread rise in rents in Canadian cities, Airbnb regulation is now emerging as an effective lever to mitigate the housing crisis, according to recent academic research published in 2026. To improve access to housing, particularly in a context of high rental pressure in Montréal, the regulation of short-term rental platforms has proven its relevance. An in-depth analysis conducted by researchers from the university provides a new perspective on this major socio-economic phenomenon, confirming that targeted public action can indeed change the game for tenants.
A rigorous nationwide analysis
Urban planners David Wachsmuth and Cloé St-Hilaire examined no fewer than 309 neighbourhoods from one end of the country to the other over a six-year period, spanning from 2017 to 2022. Their findings, published in the academic journal Regional Studies, demonstrate that rents remained relatively lower in Canadian municipalities that chose to regulate the short-term rental of a primary residence. Originally, these sharing platforms were intended to allow an occupant to temporarily rent out part of their home to secure additional income.
An effective but limited lever
However, market reality quickly deviated from this initial collaborative model. Many property owners increased the year-round rental of entire apartments, removing these properties from the traditional rental market intended for local residents. This mechanical reduction in available supply directly contributed to driving up the prices of the remaining properties on the market. This dynamic of residential exclusion has prompted several levels of government to intervene in an attempt to rebalance the rental market.
More moderate rents thanks to restrictions
The study provides quantitative evidence of the positive impact of these public policies. In areas where the rental of a primary residence was subject to restrictions, monthly rents were an average of 24 dollars lower in the year following the entry into force of the regulations, compared to what they would have been in the absence of legislation. This downward trend became more pronounced over time, reaching a difference of 55 dollars per month in regulated areas after a few years, and 40 dollars in adjacent unregulated areas.
Montréal, a laboratory for strict rules
In Montréal, where the rules are among the strictest in the province of Québec, this regulation has also generated a beneficial knock-on effect on neighbouring municipalities such as Laval and Longueuil. This phenomenon demonstrates that strong local legislation can stabilise prices beyond the administrative boundaries of the central city, offering welcome respite to tenants in the metropolitan area. The psychological and economic impact of these measures is thus reshaping regional property dynamics.
The limits of Airbnb regulation
Despite the introduction of binding measures, such as mandatory registration in a centralised registry and the obligation to pay taxes related to the accommodation sector in Québec, municipalities face persistent obstacles. The lack of direct access to the digital platform’s activity data considerably complicates the monitoring work of municipal inspectors. The anonymity of hosts and the general opacity of the system hinder the rigorous enforcement of the law on the ground.
Derisory fines and persistent opacity
Furthermore, the financial consequences imposed on offenders often remain too light to be truly deterrent in the face of the substantial profits generated by tourist rentals. The speed of technological evolution systematically outpaces legislative processes, creating a permanent lag between new platform practices and the regulatory tools available to govern them. Public authorities must therefore constantly adapt their monitoring methods.
A partial response to market reality
However, the authors of the study call for some caution regarding the scope of these measures. While the average decrease of 55 dollars per month demonstrates the usefulness of regulatory policies, it represents only a fraction of the overall financial cost for households. In 2022, the end date of the study, the average rent for an unfurnished one-bedroom apartment in Montréal already stood at around 1,500 dollars per month. The effect of the regulation, although real and measurable, is not enough on its own to resolve a deeply multi-faceted housing crisis.
The regulation of these sharing platforms is therefore only one piece of a larger puzzle that includes the construction of new housing and support for the social sector. For Canadian municipalities and provinces, the challenge now lies in harmonising their efforts and increasing the transparency of digital data. This increased control remains an essential tool for preserving the social balance of neighbourhoods and ensuring long-term housing affordability.
