Are short-term rentals reshaping condos in Montreal? Without a doubt, Airbnb has transformed the housing landscape, pulling units away from long-term renters while simultaneously boosting tourism revenue. However, this shift raises important questions about affordability and availability. In this article, we’ll examine the effects of short-term rentals, analyze key statistics, and, most importantly, provide insights for navigating this evolving market.
1. Why Airbnb Matters for Condos in Montreal?
First and foremost, Airbnb has seen explosive growth in Montreal. The platform now hosts thousands of listings, many of which are condos. According to Inside Airbnb, Montreal had approximately 8,000 active Airbnb listings in 2023. At the same time, the city faces a housing shortage, with vacancy rates dropping to 2.2% in 2024 (CMHC). As a result, short-term rentals have intensified competition for available housing.
Additionally, Montreal’s status as a major tourist destination further fuels demand. With 11.1 million visitors in 2019, the need for short-term accommodations is evident. Naturally, many condo owners view Airbnb as a lucrative opportunity, increasing the number of short-term rental properties in the city.
2. How Airbnb Reduces Housing Supply?
Next, let’s examine how Airbnb affects housing availability. Studies indicate that short-term rentals remove a significant number of units from the long-term market. For instance, a McGill University study found that 14,000 homes across Montreal, Toronto, and Vancouver had been converted into short-term rentals. In Montreal alone, Airbnb has removed approximately 6,000 units—many of them condos.
Moreover, the impact varies by neighborhood. Areas like Hochelaga-Maisonneuve, which offer convenient transit and amenities, have lost 2-3% of their housing stock to Airbnb. Consequently, the shrinking rental supply increases competition, driving up housing costs.
3. Rising Rents and Gentrification
The financial impact of Airbnb on rent prices is another critical concern. Research from McGill University indicates that a 1% increase in Airbnb listings results in a 0.018% rise in rental prices. While this percentage may seem small, the cumulative effect is significant.
For example, the average rent for a two-bedroom condo in Montreal reached $1,800 in 2023. In high-demand areas like Mercier–Hochelaga-Maisonneuve, comparable units now command $2,500 per month.
Furthermore, short-term rentals contribute to gentrification. As more condos in Montreal shift to Airbnb use, lower-income residents are displaced. In particular, neighborhoods with high Airbnb activity experience bidding wars, further exacerbating affordability issues.
4. Condos in Montreal: The Commercialization of Airbnb
Beyond individual hosts renting out spare rooms, Airbnb has evolved into a large-scale commercial enterprise. A significant portion of listings in Montreal are managed by investors who operate multiple properties as de facto hotels. In fact, one-third of Airbnb listings are “multi-listings”, meaning hosts manage multiple properties for profit.
Additionally, McGill University’s research identified “triple threat” listings—full-time, entire-home, multi-listing properties—which make up 8% of listings but generate 34% of total Airbnb revenue. This level of commercialization exacerbates the housing crisis by removing even more condos from the long-term rental market.
5. Economic Benefits vs. Housing Costs
On the other hand, Airbnb does offer economic advantages. In 2018, tourists using the platform spent an estimated $475 million in Montreal, supporting local businesses and hospitality services. Additionally, 75% of Airbnb guests reported they were more likely to return to Montreal because of the short-term rental options available.
For condo owners, Airbnb presents a profitable alternative to traditional renting. A short-term rental can often generate more revenue per month than a standard lease. However, the benefits are not evenly distributed. While some property owners see higher earnings, renters face a shrinking supply of affordable condos and rising prices.
6. Regulatory Crackdowns for Condos in Montreal
In response to the growing crisis, Quebec has introduced stricter regulations for short-term rentals. Following a tragic 2023 fire in Old Montreal, where six people died in illegal Airbnb units, new laws were enacted to increase accountability.
As of 2025, platforms like Airbnb must verify that all listings are legally registered or face fines of up to $100,000. Additionally, Montreal now limits short-term rentals to summer months in an effort to free up more long-term housing.
However, enforcement remains inconsistent. In 2023, only 30% of Montreal’s Airbnb listings complied with regulations, and despite 252 complaints, only 19 fines were issued. As a result, illegal short-term rentals continue to thrive, further reducing available condos in Montreal.
7. Market Trends and Statistics for Condos in Montreal
To understand Airbnb’s impact, let’s look at some key figures:
- A $500,000 condo in Hochelaga-Maisonneuve could generate $3,000 per month on Airbnb, compared to $2,500 as a long-term rental.
- With 6,000 condos removed from the rental market, housing scarcity has contributed to a 5.4% annual rent increase, according to CMHC.
- In Vancouver, strict Airbnb regulations successfully returned hundreds of units to the long-term rental market. If Montreal enforces its new laws, a similar effect could follow.
8. What’s Next for Short-Term Rentals?
Looking ahead, the future remains uncertain. Stronger regulations and improved enforcement could reduce the number of Airbnb units, making more condos available for long-term renters. At the same time, tourist demand remains high, meaning short-term rentals will likely continue playing a role in the market.
By 2030, Montreal may achieve a better balance between tourism and housing. However, in the short term, the effects of Airbnb on condos in Montreal will continue shaping affordability and availability.
9. Tips for Buyers and Renters
For those navigating this shifting landscape, here are some practical tips:
- Check Airbnb History: If a condo building has many short-term rentals, it may face future restrictions.
- Review Condo Bylaws: Many buildings prohibit Airbnb—understanding the rules is crucial.
- Monitor Vacancy Rates: Areas with low vacancy rates (under 3%) tend to have higher Airbnb-related pressure.
- Consider Alternative Locations: Exploring neighborhoods outside of high-tourism zones may offer more stable rental options.
- Engage with the Community: Speak to residents about how short-term rentals impact the area.
Taking these steps can help you make informed decisions when buying or renting condos in Montreal.
10. Is Airbnb Worth It?
Ultimately, the impact of Airbnb depends on perspective.
- For property owners, Airbnb can increase condo values by 5-10%, as demand for short-term rentals remains strong.
- For renters, however, the rise of Airbnb means higher costs and fewer options. A two-bedroom apartment that once rented for $1,800 per month may now cost $2,000 or more due to Airbnb-driven competition.
Moreover, illegal short-term rentals remain a persistent issue—over 50% of Montreal’s 4,000 full-time Airbnb units operate without proper registration. While Airbnb brings undeniable economic benefits, its effect on housing affordability remains a pressing concern.
As the city enforces stricter regulations, those considering condos in Montreal should weigh the pros and cons carefully. Consulting a real estate expert can help ensure a smart investment in this rapidly evolving market.
