{"id":524497,"date":"2026-03-09T12:14:07","date_gmt":"2026-03-09T12:14:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/524497\/"},"modified":"2026-03-09T12:14:07","modified_gmt":"2026-03-09T12:14:07","slug":"montreal-seasonal-short-term-rental-ban-risks-millions-in-tourism-revenue","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/524497\/","title":{"rendered":"Montr\u00e9al seasonal short-term rental ban risks millions in tourism revenue"},"content":{"rendered":"

A new independent analysis<\/a> by Raymond Chabot Grant Thornton (RCGT)1 finds that the City of Montr\u00e9al\u2019s municipal bylaw\u2014which limits short-term rentals in residential neighbourhoods from June 10 to September 10\u2014will create a deficit of more than 26,000 accommodation nights during two of the city\u2019s most important and highly attended international events in 2026: the Formula 1 Canadian Grand Prix (May 22\u201324) and the UCI World Cycling Championships (September 19\u201327).<\/p>\n

According to the report, the current regulation is projected to cost Montr\u00e9al more than $19 million in lost economic activity, as both events fall outside the City\u2019s authorized short-term rental window. By limiting accommodation capacity during peak demand, the city risks turning away visitors and the millions of dollars they would otherwise spend locally.<\/p>\n

Action needed to ensure Montr\u00e9al can meet growing visitor demand<\/p>\n

As Montr\u00e9al prepares for its tourism high season, the city must act quickly to ensure it has the accommodation capacity needed to meet growing demand. Recent data shows that during peak periods and major events, limiting short\u2011term rentals reduces the city\u2019s ability to welcome visitors and fully benefit from the economic activity they generate. By lifting the seasonal ban and simplifying registration, Montr\u00e9al can support local businesses year\u2011round, maximize visitor spending, and strengthen its position as a world\u2011class destination.<\/p>\n

Airbnb is urging the City to make two focused, practical updates:<\/p>\n

End the seasonal ban for principal\u2011residence hosts. Montr\u00e9alers should be able to host in their principal residence year\u2011round to support a strong, four\u2011season tourism economy. The City should also preserve the existing principal\u2011residence exemption in commercial and industrial zones, as hosting in these areas is essential to maintaining accommodation capacity and generating economic activity in key, identified neighbourhoods that rely on it.
\nMove to a simple, fully online permit system. The current requirement for a mandatory in\u2011person visit creates unnecessary barriers for residents who want to host. Transitioning to a streamlined, fully digital process would make permitting more accessible, efficient, and user\u2011friendly for eligible hosts.<\/p>\n

A 26,000\u2011night shortfall threatening $19 million in visitor spending<\/p>\n

RCGT\u2019s analysis finds that Montr\u00e9al faces a shortfall of more than 26,000 accommodation nights during the 2026 Formula 1 Canadian Grand Prix and the UCI World Cycling Championships\u2014over 7,000 units during the Grand Prix and nearly 19,000 during the Cycling Championships. The gap peaks on Saturdays, when demand is highest and hotel capacity is most constrained.<\/p>\n

Montr\u00e9al would also forfeit more than $19 million in visitor spending because of the lodging shortage\u2014over $7 million tied to the Grand Prix and another $12 million during the Cycling Championships\u2014reducing what visitors would have otherwise spent on restaurants, entertainment, transportation, and retail across the city.<\/p>\n

Hotel prices expected to surge far beyond normal market levels<\/p>\n

When demand exceeds supply, prices surge. CoStar2 data shows that during the 2025 Formula 1 Canadian Grand Prix, the average hotel rate reached about $892 on race Saturday, a 167 per cent increase over typical high-season weekends. If the accommodation gap widens in 2026, similar pressures could drive prices even higher and make it harder for visitors to afford their trip to Montr\u00e9al.<\/p>\n

\u201cMontr\u00e9al is preparing to welcome two of the world\u2019s premier sporting events, yet current seasonal limits on short\u2011term rentals restrict the city\u2019s flexibility at the very moment demand will be at its peak. We appreciate that the Mayor has acknowledged the bylaw isn\u2019t working as intended and has expressed openness to lifting the ban. Updating the rules to allow principal\u2011residence hosts to operate year\u2011round, streamline permitting, and maintain existing paths to hosting in the zones that already support Montr\u00e9al\u2019s tourism economy would give the city the capacity it needs, help prevent extreme price spikes for visitors, and ensure the economic benefits of these global events stay in Montr\u00e9al\u2019s neighbourhoods and businesses.\u201d<\/p>\n

Louis-Martin Leclerc, Policy Manager, Airbnb<\/p>\n

\u201cAccording to our analysis, the City of Montreal\u2019s current regulations could lead, in the short term, to a shortage of accommodation in the city to accommodate the large influx of tourists and visitors during two major events in 2026: the Canadian Formula 1 Grand Prix and the 2026 UCI Road World Championships in Montreal. These events will take place outside the regulatory framework of short-term rental authorizations.\u201d<\/p>\n

Jean-Philippe Brosseau, Partner, Economic Studies, Raymond Chabot Grant Thornton<\/p>\n

Lessons from Montr\u00e9al and other global cities<\/p>\n

Additional findings from RCGT3 show that Montr\u00e9al\u2019s strict short\u2011term rental regulations did not improve vacancy rates or long\u2011term rental prices. Montr\u00e9al\u2019s experience aligns with what\u2019s been seen in cities like NYC<\/a>, Barcelona, and Amsterdam<\/a>, where similarly restrictive policies failed to ease housing pressures and instead coincided with rising rents and surging hotel prices. Without targeted, evidence\u2011based updates, Montr\u00e9al risks keeping a system that limits accommodation supply precisely when the city stands to benefit most.<\/p>\n

An economic lifeline for residents and local economies<\/p>\n

The seasonal ban may be doing more harm than good. In 2025, Montr\u00e9al welcomed over 600,000 guest arrivals on the platform. More than half of these visitors were domestic travellers, reflecting a growing trend of Canadians choosing to explore closer to home<\/a>.<\/p>\n

For many locals, hosting has become a financial necessity. In 2025, 54 per cent of Qu\u00e9bec hosts turned to hosting to combat the rising cost of living, with 76 per cent relying on it for secondary income. The impact is felt in everyday essentials: 58 per cent of hosts used their earnings for basic needs like groceries, while 13 per cent reported that hosting helped them avoid foreclosure.<\/p>\n

Beyond supporting residents, these listings drive hyper-local economic growth. The typical Montr\u00e9al guest spends an average of $245 per day\u2014excluding lodging\u2014with more than half of that spending staying within the neighbourhood of their stay. Hosts are funneling critical revenue toward small businesses, such as local restaurants and shops, economic activity the seasonal ban puts at risk.<\/p>\n

Updating Montr\u00e9al\u2019s short\u2011term rental rules is essential to giving residents, businesses, and the tourism sector the flexibility they need during the city\u2019s biggest moments. With targeted changes, Montr\u00e9al can ensure it remains competitive and once again ready to welcome the world.<\/p>\n","protected":false},"excerpt":{"rendered":"A new independent analysis by Raymond Chabot Grant Thornton (RCGT)1 finds that the City of Montr\u00e9al\u2019s municipal bylaw\u2014which…\n","protected":false},"author":2,"featured_media":524498,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194292],"tags":[49,48,2338],"class_list":["post-524497","post","type-post","status-publish","format-standard","has-post-thumbnail","category-montreal","tag-ca","tag-canada","tag-montreal"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/524497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=524497"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/524497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/524498"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=524497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=524497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=524497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}