Kelowna has become one of the most affordable Airbnb destinations in Canada and it has nothing to do with the tough new restrictions on short-term rentals.
"We're looking in the rearview mirror for this one," said Airbnb's Toronto-based senior communications manager Matt McNama.
"Kelowna's Airbnb affordability is based on the biggest drop in average daily rate from summer 2023 to fall 2023."
So, the affordability rating is based on year-old numbers.
However, Airbnb decided to distribute the list to promote the platform and destinations to consider visiting this fall.
Airbnb didn't reveal what the average daily rate was in the summer or the fall of 2023 nor how large a decline it was.
And McNama didn't want to disclose either.
So, all we have to go by is Airbnb's word for it and the ranking of No. 8 for Kelowna on the top 10 list of most affordable cities for fall.
Here's the list:
1. Penetanguishene, Ontario
2. Edmundston, New Brunswick
3. Central Elgin, Ontario
4. Drumheller, Alberta
5. Cardston, Alberta
6. Chestermere, Alberta
7. Sylvan Lake, Alberta
8. Kelowna
9. Granby, Quebec
10. Saint-Jerome, Quebec
Kelowna is arguably the best known tourist hotspot on the list.
McNama says Kelowna made the list because summer is high-high season for tourism in the city and there can be a significant drop in overnight Airbnb rates from summer to fall as demand wanes.
"However, Kelowna is still a stunning place to visit in the fall with sunny, warm weather," he said.
"We want people to know that and that it's affordable in the fall."
Since we don't know the dollar values Airbnb worked with to calculate summer-to-fall affordability, we can only look at what rates are right now on the website.
For instance a one-bedroom suite with its own entrance and own patio near downtown Kelowna is $224 a night, with a two-night minimum stay.
A three-bedroom condominium in the Playa del Sol complex with a pool near Rotary Beach is going for $314 a night (again with a two-night minimum), which is about $100 a night discount from summer peak.
The most affordable Airbnbs in Kelowna tend to be about $200 a night currently.
Now let's get to the province's crackdown on short-term rentals, of which Airbnb is the biggest player.
Effective May 1, new rules stipulate a short-term rental in many communities, including Kelowna, Victoria and Vancouver, can only be in a host's principal residence and one secondary suite or accessory building on the property.
Previously, any unit could be a short-term rental, including properties bought by investors specifically to operate as a money-making business.
The province wanted to stop that in order to increase the number of affordable long-term rentals in cities that have a housing crunch and high rents.
"The law is having a negative impact, for sure," said McNama.
"Restricting short-term rentals hasn't added to housing inventory or long-term rental affordability. In fact, it's allowed hotel prices to skyrocket, reduced the short-term rentals that were more affordable for vacationers, hurt tourism and there's been no reduction in apartment rents or housing affordability for long-term residents."
He's right.
The short-term rental inventory in Kelowna has gone from about 2,400 units to about 1,300 units in reaction to the new rules.
And, the vacancy rate is still tight in Kelowna and the median monthly rent for a typical one-bedroom apartment was $1,970 in July, up 3% from the month before and up a hefty 19% in a year.
In Airbnb's news release announcing Kelowna as an affordable destination for fall, it referenced a KelownaNow article in which Renee Merrifield, the BC United MLA for Kelowna-Mission, blamed the provincial NDP government short-term restrictions that have backfired and limited traveller choice and hurt tourism.
McNama pointed out New York City as another jurisdiction that severely restricted short-term rentals in an effort to increase the number of long-term rentals for residents and reduce high apartment rents.
"Instead, hotel prices went through the roof, short-term rentals are down and rather than reduce long-term apartment rents, apartment rents are up 3% and homes are still unaffordable," he said.
McNama cited New York City and British Columbia as the two biggest and most important jurisdictions to come down harshly on short-term rentals.
But, there could be more to come with Barcelona considering a crackdown.
