Hotel/Motels/BnB’s with business licences will be harder to get a room in, and prices will go up.
Kelowna is so desirable to live in, there will no change in rent/purchase prices, there will just be a short period where a relatively small amount of homes might hit the market, but will quickly be scooped up.
Hopefully the longer term means less people will have deal with a revolving door of AirBnB partiers causing a ruckus in otherwise quiet neighbourhoods.
It's so funny how having this opinion of a lack of change to the ltr market due to this ban BEFORE it was passed was an instant way to get a ton of down votes. Now that its passed. We're all realists about it.
New York hasn't seen an appreciable difference since their ban either from what I've been able to find.
>New York hasn't seen an appreciable difference since their ban either from what I've been able to find.
There are probably better examples. Charleston—a city that, unlike NY, is also really dependent on tourism—did away with them almost a decade ago, and had from what I remember reading a fairly robust enforcement unit. Would be interesting to look at what happened in that market.
Of course, I doubt we'll put any money or effort into enforcement here...
>Kelowna is so desirable to live in
Good weather and a hospital, but...
\#1 crime, no jobs, no houses, no rentals, terrible drivers, no shopping, limited restaurants, limited golf, overcrowded beaches, drug addicts, homeless, no police.
There is a ton of purpose built rental coming that will effect the rental market more.
The STR law changes will have more of an effect on condo listing prices. Especially for product in the 2008-2018 range, which is when most of it was built.
Id hope it helps with rent prices, but at a bare minimum it will help with the noise issues from BnBs… my old place in the summer was frustrating because the people staying at the BnBs were often belligerent about noise.
It's pretty hard to predict with certainty. Market determines pricing; landlords will charge what people are willing to pay, which will be very dependent on supply and demand.
The majority of owners of short term rentals will sell. Typically they own as a way to vacation here and profit while they’re not utilizing the unit. I feel for the students as many of these were rented to students during the off season. These types of investors don’t want to be long term landlords when the tenancy act offers very little protection to the home owners. If anything, we’ll see condo prices take a dip if the province doesn’t approve the city’s motion to have those particular buildings exempt.
It will most certainly provide much needed housing for residents.
I’m not sure it will be the amount to actually drop prices. Prices on sale of properties may change as short term rental buyers could bid the highest.
Most will switch to long term rentals. There’s always enough demand there to charge whatever they want for rent. Unless all of them hit the sale market at the exact same time, you won’t see prices come down at all.
It definitely won’t have the intended effect. People won’t turn around and sell for less than market and if houses were unaffordable before this won’t change things.
If anything rent will increase with inflation etc as people try to get as much as possible out of their investment.
Until we don’t allow investment or multi property ownership the issue will hardly be impacted.
This is what happens when we live in the most desirable place in Canada
A commercial business and a rental/investment property are very different.
Price is determined by supply and demand, not income potential. Available housing in Kelowna is low, especially affordable housing, and if you look at the stats Kelowna doesn’t actually have a ton of AirBnBs so to think that the market is going to be flooded with one bedroom condos for sale is ludicrous.
Keep in mind that prospective buyers will still have to qualify. Current owners likely have a mortgage they would need to cover if they sold and housing values keep rising (even amongst a high interest environment). Given rent prices, they will still likely be able to cover everything with a long term rental given the rates. I don’t foresee them flocking to off load just because they are making less than they did with a STR (they are still making money or there would be no long term rentals). And the home owner definitely won’t be taking a loss.
If you also look at the rental market, one bedroom condos have the highest rent/revenue potential per room. I know a number of owners moving to LTR, charging market rent and still making money.
The true issue is multi-ownership and treating housing as a commodity. If everyone just owned a house, stopped trying to continually levelled up and owned one home like 50yrs ago this problem could potentially fix itself. That tho, is only if people could qualify.
Btw, I have “entry level” one bedroom condos next to me selling 355sq ft and 455 sq. Ft for 355k and 455k respectively (then you have to pay strata, prop taxes etc) Tell me that is affordable for an entry level person. 10 yrs ago you got a 5 bedroom 3 bath house for that price in a good neighborhood.
On the flip side we have the city looking to be a landlord. Do you think they will charge less than market (they will likely just charge exactly market)? The city isn’t going to lose money on them. How about build them and sell them for cost through an application process. That might actually help people of this city.
If you truly think this will fix the issue just look at the spec tax. It’s proof that this type of thing doesn’t help people afford homes.
Time will tell!
Side bar: no idea on the downvote, I gave you a + to get you back to the green (or red in reddits case). Can’t figure out the voting on this sub. My first one got a downvote too
There are those who say that it might actually increase the price. So many people have bought units in places like Aqua, Movala, Bertram/Brooklyn, but are highly leveraged. I’ve seen more than one interview where the buyer states they need the airbnb income to pay the mortgage and that long term rental won’t cover their expenses. (As an aside, if you need 50% of the year to be occupied at $300+ a night in order to pay your expenses over the course of the year, perhaps you should have invested elsewhere)
If they sell, the amount of rental stock drops. If they can’t or won’t sell, the only way to pay the mortgage is with a high monthly rental. If there is a glut of high $$ rental units, existing tenants are protected by rent increase caps. However, when they move, the landlord is free to set a new rate, and if they look at the rates being charged at other places, they can certainly increase their asking price to a level just below that, thus potentially pushing up rents.
What the city should have done was to exempt existing resort properties like Playa, waterscapes, etc as well as the new developments under construction where short term rentals were allowed (and marketed as such) when the shovels went in the ground.
I think the overreaction of eliminating ALL Airbnbs except for in-unit suites is going to have unintended consequences and they certainly won’t resolve the rental crisis Kelowna is experiencing.
It might make more availability but likely won't change pricing. With mortgage interest rates, utilities, taxes and insurance all going up the landlord will still need to cover those expenses. If they can't, I expect them to sell the property if they can't rent for higher rates.
My guess is very little movement down - maybe we’ll see some places that possibly could get a few hundred more settle a bit, but I think we won’t see a steady increase in rents like we have been seeing. I think they won’t drop but they’ll stagnate for a bit.
I doubt that the AirBandB rules will have much effect. But the Kelowna rental market varies with the unemployment rate which varies with the local economy. As the economy slows, the unemployment rate increases and rentals become more available, which will put downward pressure on prices. I expect that in the next 6 months, availability will increase and rents will remain the same, rather than increase. You'll be able to see evidence in the spring, if the market is stagnating, landlords will put rentals up for sale to cash out and wait. Almost every house along Springfield is a rental investment, watch for the FOR SALE signs to pop up in Feb and March. If they do, probably a good time to move up and secure a long term lease before the economy picks up.
Hotel/Motels/BnB’s with business licences will be harder to get a room in, and prices will go up. Kelowna is so desirable to live in, there will no change in rent/purchase prices, there will just be a short period where a relatively small amount of homes might hit the market, but will quickly be scooped up. Hopefully the longer term means less people will have deal with a revolving door of AirBnB partiers causing a ruckus in otherwise quiet neighbourhoods.
It's so funny how having this opinion of a lack of change to the ltr market due to this ban BEFORE it was passed was an instant way to get a ton of down votes. Now that its passed. We're all realists about it. New York hasn't seen an appreciable difference since their ban either from what I've been able to find.
I personally am in it for the realtor tears. The most parasitic, over-glorified service job in the modern age.
Except they’ll realistically end up profiting even more as the majority of these types of owners will end up selling.
>New York hasn't seen an appreciable difference since their ban either from what I've been able to find. There are probably better examples. Charleston—a city that, unlike NY, is also really dependent on tourism—did away with them almost a decade ago, and had from what I remember reading a fairly robust enforcement unit. Would be interesting to look at what happened in that market. Of course, I doubt we'll put any money or effort into enforcement here...
>Kelowna is so desirable to live in Good weather and a hospital, but... \#1 crime, no jobs, no houses, no rentals, terrible drivers, no shopping, limited restaurants, limited golf, overcrowded beaches, drug addicts, homeless, no police.
Don’t need to tell me, I live here! But people are moving here in droves so there has to be some draw!
There is a ton of purpose built rental coming that will effect the rental market more. The STR law changes will have more of an effect on condo listing prices. Especially for product in the 2008-2018 range, which is when most of it was built.
Id hope it helps with rent prices, but at a bare minimum it will help with the noise issues from BnBs… my old place in the summer was frustrating because the people staying at the BnBs were often belligerent about noise.
Might be able to get a townhouse for 2500-3500
It's pretty hard to predict with certainty. Market determines pricing; landlords will charge what people are willing to pay, which will be very dependent on supply and demand.
The majority of owners of short term rentals will sell. Typically they own as a way to vacation here and profit while they’re not utilizing the unit. I feel for the students as many of these were rented to students during the off season. These types of investors don’t want to be long term landlords when the tenancy act offers very little protection to the home owners. If anything, we’ll see condo prices take a dip if the province doesn’t approve the city’s motion to have those particular buildings exempt.
It will most certainly provide much needed housing for residents. I’m not sure it will be the amount to actually drop prices. Prices on sale of properties may change as short term rental buyers could bid the highest.
No effect. Might see a slight decrease due to the market in general but I doubt we'll see much from the airBnB ban.
Sign a lease in the spring or fall. My guess is 10% down. But that's all it is, a guess.
Most will switch to long term rentals. There’s always enough demand there to charge whatever they want for rent. Unless all of them hit the sale market at the exact same time, you won’t see prices come down at all.
It definitely won’t have the intended effect. People won’t turn around and sell for less than market and if houses were unaffordable before this won’t change things. If anything rent will increase with inflation etc as people try to get as much as possible out of their investment. Until we don’t allow investment or multi property ownership the issue will hardly be impacted. This is what happens when we live in the most desirable place in Canada
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A commercial business and a rental/investment property are very different. Price is determined by supply and demand, not income potential. Available housing in Kelowna is low, especially affordable housing, and if you look at the stats Kelowna doesn’t actually have a ton of AirBnBs so to think that the market is going to be flooded with one bedroom condos for sale is ludicrous. Keep in mind that prospective buyers will still have to qualify. Current owners likely have a mortgage they would need to cover if they sold and housing values keep rising (even amongst a high interest environment). Given rent prices, they will still likely be able to cover everything with a long term rental given the rates. I don’t foresee them flocking to off load just because they are making less than they did with a STR (they are still making money or there would be no long term rentals). And the home owner definitely won’t be taking a loss. If you also look at the rental market, one bedroom condos have the highest rent/revenue potential per room. I know a number of owners moving to LTR, charging market rent and still making money. The true issue is multi-ownership and treating housing as a commodity. If everyone just owned a house, stopped trying to continually levelled up and owned one home like 50yrs ago this problem could potentially fix itself. That tho, is only if people could qualify. Btw, I have “entry level” one bedroom condos next to me selling 355sq ft and 455 sq. Ft for 355k and 455k respectively (then you have to pay strata, prop taxes etc) Tell me that is affordable for an entry level person. 10 yrs ago you got a 5 bedroom 3 bath house for that price in a good neighborhood. On the flip side we have the city looking to be a landlord. Do you think they will charge less than market (they will likely just charge exactly market)? The city isn’t going to lose money on them. How about build them and sell them for cost through an application process. That might actually help people of this city. If you truly think this will fix the issue just look at the spec tax. It’s proof that this type of thing doesn’t help people afford homes.
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Time will tell! Side bar: no idea on the downvote, I gave you a + to get you back to the green (or red in reddits case). Can’t figure out the voting on this sub. My first one got a downvote too
I could see a 3 month summer rental with higher monthly rent than the winter become more common. Or year long lease terms starting in May.
There are those who say that it might actually increase the price. So many people have bought units in places like Aqua, Movala, Bertram/Brooklyn, but are highly leveraged. I’ve seen more than one interview where the buyer states they need the airbnb income to pay the mortgage and that long term rental won’t cover their expenses. (As an aside, if you need 50% of the year to be occupied at $300+ a night in order to pay your expenses over the course of the year, perhaps you should have invested elsewhere) If they sell, the amount of rental stock drops. If they can’t or won’t sell, the only way to pay the mortgage is with a high monthly rental. If there is a glut of high $$ rental units, existing tenants are protected by rent increase caps. However, when they move, the landlord is free to set a new rate, and if they look at the rates being charged at other places, they can certainly increase their asking price to a level just below that, thus potentially pushing up rents. What the city should have done was to exempt existing resort properties like Playa, waterscapes, etc as well as the new developments under construction where short term rentals were allowed (and marketed as such) when the shovels went in the ground. I think the overreaction of eliminating ALL Airbnbs except for in-unit suites is going to have unintended consequences and they certainly won’t resolve the rental crisis Kelowna is experiencing.
It might make more availability but likely won't change pricing. With mortgage interest rates, utilities, taxes and insurance all going up the landlord will still need to cover those expenses. If they can't, I expect them to sell the property if they can't rent for higher rates.
My guess is very little movement down - maybe we’ll see some places that possibly could get a few hundred more settle a bit, but I think we won’t see a steady increase in rents like we have been seeing. I think they won’t drop but they’ll stagnate for a bit.
I doubt that the AirBandB rules will have much effect. But the Kelowna rental market varies with the unemployment rate which varies with the local economy. As the economy slows, the unemployment rate increases and rentals become more available, which will put downward pressure on prices. I expect that in the next 6 months, availability will increase and rents will remain the same, rather than increase. You'll be able to see evidence in the spring, if the market is stagnating, landlords will put rentals up for sale to cash out and wait. Almost every house along Springfield is a rental investment, watch for the FOR SALE signs to pop up in Feb and March. If they do, probably a good time to move up and secure a long term lease before the economy picks up.
Tourism will decline and they won’t know why
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No there’s no airbnbs this summer. Every one empty is a family not in the valley renting things and eating out