A narrowly focused fall fiscal update coming Tuesday from federal Finance Minister Chrystia Freeland includes a measure designed to make it less lucrative for people to use their properties as short-term rentals, the Star has learned.
Property owners in areas that already restrict short-term rentals will no long be able to claim their rental expenses against the income they make, a senior federal official told the Star, in a bid to take away the incentive to flout local restrictions and list properties on platforms like Airbnb anyway.
The move comes as the federal government faces demands to do more to increase Canada’s housing supply as quickly as possible.
In September, Canada Mortgage and Housing Corporation said that at least 3.5 million units needs to be added — on top of what’s already being built in Canada — in order for homes in the country to become more affordable within the next 10 years.
Stories about people forced out of their homes due to rising mortgage rates, families jammed into small rentals unable to find anything bigger and overflowing shelters have all led to pressure on the federal government to respond, even though housing remains the primary responsibility of provincial and municipal governments.
Nevertheless, the Liberals have been announcing billions in spending on housing in recent weeks, as a follow-through on previously announced programs and projects that tackle everything from getting more rental apartments built to freeing up federal lands to be used for housing.
There will also be additional funds made available in Tuesday’s fall financial update for new construction.