Will banning short-term rentals make a difference in housing supply?

In April, Canada’s finance minister announced a two-year ban on foreig nhome buying. Also in April, the island of Oahu in Hawaii passed a law nearly eliminating short term rentals. Many local communities and even condo HOAs are passing similar regulations.

The reason for these moves? An attempt to stop investors from gobbling up entry level housing, and to maintain higher quality neighborhoods.

Will that happen? It’s likely that some short-term rental owners will start to divest, which will put more houses on the market. Others will shift to long-term rentals (if they can be profitable), which is good for renters. All this action should stabilize communities that have been overrun by short-term rentals in recent years. But you know the Burns quote: “The best-laid plans of mice and men often go awry.” So, we’ll see.