Posts Tagged ‘BC rental regulations impact’

The Short-Term Rental Accommodations Act Victoria BC introduced major regulatory changes on May 1, 2024, with the goal of increasing long term housing supply. Since implementation, the legislation has influenced investment strategies, rental inventory, and buyer behaviour across Greater Victoria. From a local real estate perspective, the effects are measurable, but they are also part of a broader housing market shift rather than a single defining factor. What the Legislation Changed for Victoria Homeowners and Investors The Short-Term Rental Accommodations Act Victoria BC limits most short-term rentals to a property owner’s principal residence. In many cases, owners can only operate short-term rentals within their main home or a secondary suite or accessory dwelling on the same property. For investors who previously relied on non-owner-occupied vacation rentals, this created a significant shift. Some owners transitioned their properties into long-term rentals, while others chose to sell investment units that no longer aligned with their income goals. Increase in Long-Term Rental Supply Since the Act’s introduction, Victoria has seen signs of increased long-term rental availability. Some previously short-term rental properties have returned to the traditional rental pool. This change has contributed to slightly higher vacancy rates compared to the extremely tight rental conditions seen prior to 2024. From a realtor’s perspective, this shift has created new opportunities for tenants searching for stable housing. Buyers who plan to hold properties as long-term rentals are also seeing more available inventory in certain condominium segments. Changing Investment Buyer Behaviour The Short-Term Rental Accommodations Act Victoria BC has reshaped investor demand. Before 2024, many buyers targeted properties that allowed flexible short-term rental use. Since the regulation took effect, investors are focusing more on: Properties with legal secondary suites • Principal residence plus rental configurations • Long-term rental income stability • Properties located in municipalities or strata buildings that still permit short-term rentals This shift has created a more cautious investment environment. Buyers are spending more time reviewing zoning, strata bylaws, and municipal regulations before making purchase decisions. Impact on Condominium and Downtown Markets In Victoria’s downtown core, where short-term rental activity was historically concentrated, the Act contributed to a modest increase in resale listings during parts of 2024 and early 2025. Some investor-owned units entered the resale market after short-term rental restrictions reduced projected revenue. While this added inventory temporarily increased buyer choice, pricing impacts have varied depending on building type, location, and rental flexibility. Well-managed buildings with strong long-term rental demand continue to perform steadily. Limited Impact on Detached Housing Demand Detached homes in Victoria have generally experienced less direct impact from the Short-Term Rental Accommodations Act Victoria BC. Many single family homes were already owner-occupied or operated with legal suites that remain compliant under current rules. Demand for detached homes remains driven by lifestyle, school catchments, and neighbourhood appeal rather than short-term rental income potential. Market Stability and Long-Term Outlook Early patterns suggest the legislation has helped shift some housing units back toward long-term residential use. However, housing supply, interest rates, population growth, and construction levels continue to play major roles in overall market conditions. From a local real estate perspective, Victoria remains a supply-constrained market. While the Act has influenced investor activity, it represents one component of a complex housing system rather than a single solution to affordability challenges. What Buyers and Sellers Should Consider Moving Forward Buyers considering rental or investment properties should carefully review municipal regulations, provincial registration requirements, and strata bylaws. Sellers who previously marketed properties based on short-term rental income may need to adjust pricing and marketing strategies to reflect current regulations. The Short-Term Rental Accommodations Act Victoria BC continues to shape investment planning and housing availability. As enforcement and registration requirements evolve, market patterns may continue to adjust. If you are considering buying, selling, or investing in Victoria real estate, contact our team to discuss how current regulations may influence your options and long-term strategy.   Brett H., 5-Star Review, via Google “I can’t suggest how to make Fabers better at being good realtors. They’re already congenial, trustworthy, informed, experienced, and thorough. Cal listened and advised, and somewhere in the middle he said what the condo would sell for and he was right on. Thanks!” Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧[email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood, Zachary Parsons, and Sophie Taylor “Building Lasting Relationships, One Home at a Time.”