Airbnb Says Short-Term Rentals Bring Millions of Dollars to Halifax
HALIFAX–Airbnb has become a source of debate in Halifax and other cities across Canada. At a time when people are struggling to find affordable rental units and housing, many argue short-term rentals are taking up too much space in the market.
But Airbnb itself released a new survey that argues the company is important to the tourism industry. The survey, the company claims, shows that Airbnb rentals spread those precious tourism dollars to areas of cities where hotels don’t operate.
According to Airbnb’s numbers, 70 per cent of Halifax areas have Airbnb listings but “sparse to no hotel” presence. Airbnb also says Halifax neighborhoods that don’t have hotels hosted 45,000 guests and earned Airbnb owners more than $30 million in 2022.
Matt McNama, a senior communications manager at Airbnb, says these guests are important to small businesses that are not located in a city’s hub or where hotels are concentrated.
“We found that Airbnb disperses itself in a much wider range of areas than traditional tourism hubs,” said McNama. “And this is particularly noteworthy in cities like Halifax, which have a core hub for visitors. We found that visitors are expanding themselves into areas that they would not normally go. And in doing so they’re spending money there.”
“Guests at Airbnb spend approximately $250 per day. And 50 per cent of that spending is directly in the neighborhood. So, by dispersing travel, what it’s really doing is creating these micro economies that we wouldn’t have seen before the idea of short-term rentals.”
“That spending goes to the mom-and-pop shops, to the restaurants, to the shopping centers, and all of those traditional places that visitors like to go. We’re no longer reliant on having to stay in downtown Halifax or downtown Toronto.”
Whatever the arguments are for and against the economic impact of Airbnb, cities across Canada are starting to regulate the industry. Last March, following a long public meeting, Halifax Regional Council approved new rules that prohibit these rentals in residential zones unless that house or apartment is the owner’s primary residence.
The new law goes into effect September 1. According to Discover Halifax, 73 per cent of short-term rentals in the city are located in residential zones. In August of 2022, there were 2,007 active listings across the city.
At the meeting, Discover Halifax estimated the new law would lead to an economic loss of $49 million.
At the meeting, several owners of short-term rentals argued against the new law. Others voiced their support, arguing that their neighbourhoods are becoming nothing but short-term rentals and temporary guests.
McNama said it’s too early to know how this new law will affect Airbnb operations in Halifax.
“What I can say is that we’re for fair and reasonable regulations,” said McNama. “We think that they can serve a purpose. You can still have people welcome guests into their home while also supporting the priorities of government.”
When asked about the argument that Airbnb rentals contribute to the housing shortage, McNama pushed back. He argued that the stats show Airbnbs take up too little of the supply to be a major factor.
“Housing is a very complicated issue,” said McNama. “I will admit I’m not a housing expert but what we do know about Airbnb is that when you look at the overall housing supply in Nova Scotia, Airbnb represents less than one per cent of the number of dwellings in Nova Scotia. So, the issue of housing is primarily one of supply.”
“It’s an issue of needing to build more homes. And Airbnb, with one per cent of the number of dwellings in Nova Scotia, would be such a small part of the pie.
McNama also noted that strict regulations in bigger cities like Toronto have not put a dent in the housing affordability crisis.
“When you look at cities like Toronto or Vancouver, they have really strict regulations when it comes to Airbnb. And those regulations are primarily focused on you must be living in the home with which you rent. Toronto put this regulation in place in 2021. They’re very strict on enforcing it. And so you can’t rent a secondary home in Toronto. And yet we’re still seeing rents going up.”
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].