Tourism is a crucial element of Montreal’s financial system all year-round – producing customer spending to each nook of the group, creating jobs, and fueling small companies that depend on foot site visitors that comes from travellers.
That’s why the Metropolis of Montreal’s resolution to restrict short-term leases to the summer season months (June 10 to September 10), is excessive, unreasonable, and threatens to undermine town’s financial system.
A brand new report highlights the detrimental affect of the Metropolis’s resolution. Based on a brand new financial evaluation, as soon as enacted, this restriction may put in danger over $400 million1 in financial exercise and over 4,400 jobs – affecting not solely short-term rental residents that host, but additionally the numerous small companies that rely upon tourism year-round.
“As an alternative of enacting excessive and shortsighted restrictions, the Metropolis of Montreal ought to pursue wise laws that stability the wants of residents, hosts, and the broader tourism financial system. We strongly urge policymakers to reverse this economically damaging legislation and work collaboratively to help accountable short-term leases that profit town, its financial system, and its individuals.”
– Alex Howell (she/her), Coverage Lead, Airbnb, Canada
A devastating financial affect
Based on an inner evaluation utilizing the IMPLAN financial mannequin, the restriction may end in important monetary losses for Montreal:2
400M+
Financial exercise in danger
$285M+
Labour revenue in danger
4,400+
Jobs in danger in industries similar to retail, eating places and cleansing companies
Based on Airbnb inner information, from September 11, 2023, to June 9, 2024, Montreal Airbnb hosts welcomed over 400,000 visitor arrivals together with over 83,000 Quebecers, demonstrating the demand for year-round short-term rental choices.
A risk to main occasions and tourism progress
One of the damaging features of the restriction is its affect on main occasions that drive Montreal’s tourism financial system, together with the 2026 Montreal Grand Prix, happening outdoors the working interval for short-term leases. Final yr, over 16,000 company stayed in Montreal throughout Grand Prix weekend3, and these new restrictions may go away hundreds of tourists scrambling for restricted, and costly, resort choices.4
Quick-term leases assist disperse tourism spending throughout all of Montreal, permitting guests to remain in numerous neighbourhoods and help native companies. Actually, 40 % of visitor spending occurs within the space the place they ebook their keep, and two thirds of Airbnb company say they really feel extra linked to native tradition when staying in a house reasonably than a resort.
Strict laws are ineffective at fixing the housing disaster
Quebec, together with Montreal, has among the strictest short-term rental laws on this planet, together with a major residence restriction in lots of elements of town and a compulsory registration system in place. Actually, the Quebec Minister of Tourism has acknowledged that compliance throughout the province is excessive.
Regardless of strict laws, Montreal’s rental affordability continues to erode, particularly given the province’s lack of hire management. Information from Statistics Canada exhibits that the variety of short-term rental items that may very well be transformed into long-term housing is minimal– simply 0.39 % of the housing provide. Actually, the Conference Board of Canada discovered that restrictive short-term rental insurance policies haven’t led to decrease hire.
The minimal affect on housing in Montreal and throughout Canada has additionally been seen all over the world. New York Metropolis, which decreased short-term leases by over 90 % in September 2023, is seeing record rental prices, with none enchancment on emptiness charges, all whereas resort charges are at record levels – a destiny Montreal dangers with its latest modifications.
Airbnb hosts: On a regular basis residents who depend on further revenue
Montreal’s new restrictions will disproportionately affect on a regular basis Montrealers who depend on short-term leases to make ends meet. A 2024 survey of Airbnb hosts discovered:
- 77% of hosts use their earnings to cowl the rising price of dwelling.
- 51% say their Airbnb revenue has helped them keep of their properties.
- 11% say it has helped them keep away from foreclosures or eviction.
- 61% of hosts rent skilled cleaners, supporting different native companies.
Extreme regulation has worsened housing affordability
Montreal’s extreme regulation has already contributed to declining housing affordability. A study by the Montreal Economic Institute discovered that town regulates housing extra closely than 73 % of Canadian cities and provinces, which has contributed to rising housing prices. Within the Better Montreal space, residential real estate prices have soared 30.6 percent between the fourth quarters of 2019 and 2023, despite already strict short-term rental laws.
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