2024 Short-Term Rental Performance Report: Major Canadian Cities

This analysis report is aimed to help homeowners and property managers to have an understanding of the short-term rental industry and how earnings compare to long-term rental rates. By comparing short-term rental and long-term rental income of different property types in 2023, I hope that it will become easier to gauge the profitability of Airbnb and make a decision about whether to enter the Airbnb market in 2024. 

Please note that this report uses general numbers from each city, encompassing both downtown and outskirts locations where short-term rentals are permitted. To learn about your property’s specific earning potential, I recommend you register a free account with StayPro and speak with one of our experts directly. To register, visit the StayPro website.

Canadian Cities and Their Permit Rules and Revenue Increase Grade
City	Permit Rules	1BR	2BR	3+BR
Calgary	Easy	C-	C	B-
Edmonton	Easy	D	C+	B-
Montreal	Strict	A	A+	A+
Ottawa	Easy	C	B	B
Toronto	Flexible	B-	B	B
Vancouver	Flexible	C-	C+	C+

Where Did We Get This Data?

Data for long-term rental income was collected from Zumper. 

Short-term rental data was determined by market data and StayPro's own experience doing short-term rental management in many Canadian cities.

How Do Letter Grades Work?

The performance of short-term rental unit types across major Canadian cities can be evaluated using a letter grade system, which ranges from A+ to "Not Recommended." This system compares and ranks the revenue potential of short-term rentals to their long-term rental counterparts given the same parameters. 

• A+ to A- Grades (70-100% Revenue Increase): Units that achieve these grades exhibit exceptional performance, with short-term rental revenues significantly surpassing those of long-term rentals, by 80 to 100%. These units are typically in high-demand locations and offer features or amenities that are particularly appealing in the short-term rental market.

• B+ to B- Grades (50-70% Revenue Increase): This range indicates strong performance, where short-term rentals generate 60 to 80% more revenue compared to long-term rentals. These units are likely well-maintained and well-located, offering good value and consistent demand.

• C+ to C- Grades (30-50% Revenue Increase): Units receiving these grades show moderate performance, with short-term rental revenue exceeding long-term rental revenue by 40 to 60%. These properties may benefit from certain strategic improvements to enhance their appeal or may be located in areas with less consistent demand.

• D+ to D- Grades (10-30% Revenue Increase): These grades are assigned to units where the revenue increase from short-term renting, as opposed to long-term, is marginal, ranging from 20 to 40%. These properties might struggle with higher operational costs, less optimal locations, or other factors that limit their profitability in the short-term rental market.

• Not Recommended: This category is for units where short-term rentals do not yield favorable results. In these cases, the revenue from short-term renting may be comparable to or even less than that from long-term renting, making them unsuitable or less attractive as short-term rental investments. These units might be in areas with low tourist attraction, high competition, or regulatory challenges that adversely affect short-term rental viability.

Toronto

Studio or 1-Bedroom (2024 Grade: B-)

2023 Performance:

Toronto's performance on the short-term rental market varies dramatically depending on its location; downtown properties near public transportation networks are very popular and therefore lucrative. Summer months in downtown can yield incomes of even $5,000 CAD. If you are in the outskirts, incomes are subsequently reduced. In 2023, the average short-term rental rate for these units was $125 per night, compared to the average long-term rental rate of $2,500 per month. Strong demand in Toronto generated high earnings, especially for attractive properties with professional photography and good reviews, who made the most out of the 180-day occupancy limits imposed on Toronto Airbnbs. 

2024 Projection:

Given the consistent demand and lack of affordable hotels, these units are expected to maintain their profitability. The central location and convenience continue to attract short-term renters willing to pay a premium.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,500/month

• Average Short-Term Rental Monthly Earnings (2023): $3,750/month

Grade: B-

The revenue increase is expected to remain stable around the 50% mark.

2-Bedroom (2024 Grade: A-)

2023 Performance:

Two-bedroom units in downtown Toronto were one of the most popular and profitable unit types. In the outskirts, they were also in high demand due to a lack of this type of accommodation, where most homes have 3 or more bedrooms. The long-term rental rate averaged $3,000 per month, while short-term rental nightly rates ranged from $190 in the outskirts to about $250+ in the downtown core. 

2024 Projection:

The market for accommodations that accommodate larger groups is expected to remain stable in 2024.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $3,350/month

• Average Short-Term Rental Monthly Earnings (2023): $5,910/month

Grade: A-

The revenue increase is expected to remain stable around the 76.42% mark. 

3+ Bedrooms (2024 Grade: B)

2023 Performance:

Larger units in Toronto, with 3 or more bedrooms, fetched an average of $290 per night in short-term rentals, while the long-term rental rate averaged around $4,580 per month. This type of unit was especially popular during important events and holidays and attracted large groups of singles and families alike. 

2024 Projection:

Demand is likely to remain stable in 2024. Notably, in downtown, there is a lack of larger accommodations, so rates will likely continue to be significantly higher than $290 per night. 

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $4,580/month

• Average Short-Term Rental Monthly Earnings (2023): $7,200/month

Grade: B

The revenue increase is expected to remain stable around the 57.21% mark.

Montreal

Studio or 1-Bedroom (2024 Grade: A)

2023 Performance:

In 2023, studio and 1-bedroom units in Montreal were very popular in the short-term rental market, with an average nightly rate of $107. Due to a policy change in September 2023, restrictions became much more strict in Montreal and many hosts had to stop renting on Airbnb. This increased rental rates in the city, however we have yet to reach high season to truly gauge how this will affect the industry.

2024 Projection:

The demand for these units is expected to remain strong and hosts will hopefully see an increase in both rates and occupancy following the permit changes.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $1,700/month

• Average Short-Term Rental Monthly Earnings (2023): $3,210/month

Grade: A

With the smaller amount of available Airbnbs in Montreal, the revenue increase from long-term rentals is expected to either remain stable at or exceed the 88.82% mark. 

2-Bedroom (2024 Grade: A+)

2023 Performance:

Montreal's 2-bedroom units were popular on Airbnb in 2023, reflecting the high number of groups that visit the city. Rates ranged, but on average were about $160/night. Comparatively, monthly long-term rental rates were about $2,300 per month.

2024 Projection:

With the new restrictions in Montreal introduced late 2023, there is some speculation about how the Montreal short-term rental market will respond. However, it can be expected that the remaining Airbnbs will be able to demand higher prices given the reduced supply.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,380/month

• Average Short-Term Rental Monthly Earnings (2023): $4,800/month

Grade: A+

With the smaller amount of available Airbnbs in Montreal, the revenue increase from long-term rentals is expected to either remain stable at or exceed the 101.68% mark. 

3+ Bedrooms (2024 Grade: A+)

2023 Performance:

In 2023, larger units with 3 or more bedrooms in Montreal attracted an average short-term rental rate of $300 per night. These were especially popular in summer months where there were some daily rates of $900+. Comparatively, the long-term rental rate averaged $3,200 per month.

2024 Projection:

With growing interest in group travel and family vacations in urban centers, these units are likely to see continued high demand and profitability.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $3,200/month

• Average Short-Term Rental Monthly Earnings (2023): $8,010/month

Grade: A+

The revenue increase percentage for this set of data is approximately 150.31%. Therefore, it surpasses the criteria for an A+ grade and indicates great income potential for 2024.

Vancouver

Studio or 1-Bedroom (2024 Grade: C-)

2023 Performance:

Vancouver's studio and 1-bedroom units experienced high demand in the short-term rental market in 2023. Vancouver attracts visitors in summer and winter alike, so it doesn’t have the same seasonal market as some other Canadian cities. Average long-term rent was $2,700 per month. 

2024 Projection:

2024 is projected to have the same strong demand as 2023, especially with Vancouver's growing status as a major tourist and business hub.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,700/month

• Average Short-Term Rental Monthly Earnings (2023): $3,630/month

Grade: C-

The revenue increase is expected to remain stable around the 34.44% mark. 

2-Bedroom (2024 Grade: D)

2023 Performance:

Two-bedroom units in downtown Vancouver were popular in the short-term rental market in 2023, with an average nightly rate of $160. These units appealed particularly to families and small groups seeking convenience and space. The long-term rental rate for these units was between $2,800-$4,000 per month depending on the location.

2024 Projection:

Demand for spacious, centrally-located units is likely to continue, driven by Vancouver's appeal to tourists and business visitors.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $3,500/month

• Average Short-Term Rental Monthly Earnings (2023): $4,400/month

Grade: D

The revenue increase is expected to remain stable around the 25.71% mark. 

3+ Bedrooms (2024 Grade: C+)

2023 Performance:

Larger units with 3 or more bedrooms whether downtown or in the outskirts fetched a higher average nightly rate of around $220/night. Some particularly luxurious properties with splendid views of the water could earn upwards of $320 per night in the short-term rental market in 2023. Long-term rents continued to be high in 2023 with an average of $4,500 per month.

2024 Projection:

The market trends indicate continued high demand in Vancouver.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $4,500/month

• Average Short-Term Rental Monthly Earnings (2023): $6,600/month

Grade: C+

The revenue increase is expected to remain stable around the 46.67% mark. 

Ottawa

Studio or 1-Bedroom (2024 Grade: C)

2023 Performance:

In 2023, studio and 1-bedroom units in Ottawa showed a strong performance on Airbnb. The average nightly rate was $80 while the average long-term rental rate for these units was around $1,700 per month, with a consistently high occupancy rate.

2024 Projection:

With Ottawa's growing appeal as a tourist and business destination, this size of unit is likely to remain in demand.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $1,700/month

• Average Short-Term Rental Monthly Earnings (2023): $2,400/month

Grade: C

The revenue increase is expected to remain stable around the 41.18% mark. 

2-Bedroom (2024 Grade: C-)

2023 Performance:

Just like many of the other cities in this report, 2-bedroom units were the most popular type of accommodation offered on the short-term rental market in 2023 and had an average nightly rate of $100. Alternatively, the long-term rental monthly rent for these units was about $2,250 per month.

2024 Projection:

The demand for spacious, centrally located units is likely to continue, driven by Ottawa's increasing popularity.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,250/month

• Average Short-Term Rental Monthly Earnings (2023): $3,000/month

Grade: C-

The revenue increase is expected to remain stable around the 33.33% mark. 

3+ Bedrooms (2024 Grade: B)

2023 Performance:

Larger units with 3 or more bedrooms in Ottawa generated an average of $150 per night in the short-term rental market. The long-term rental rate was approximately $3,500 per month.

2024 Projection:

Ottawa is expected to have similar performance in 2024. 

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,800/month

• Average Short-Term Rental Monthly Earnings (2023): $4,500/month

Grade: B

The revenue increase is expected to remain stable around the 60.71% mark. 

Calgary

Studio or 1-Bedroom (2024 Grade: C-)

2023 Performance:

Calgary's studio and 1-bedroom units in 2023 generated an average nightly rate of $80. Comparatively, the average long-term rental rate for similar units was around $1,800 per month. 

2024 Projection:

As long-term rental rates rise, short-term rental rates are likely to stay stable in Calgary in 2024.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $1,800/month

• Average Short-Term Rental Monthly Earnings (2023): $2,400/month

Grade: C-

The revenue increase is expected to remain stable around the 33.33% mark. 

2-Bedroom (2024 Grade: C)

2023 Performance:

Two-bedroom units in Calgary were a more desirable choice in the short-term rental market in 2023, with an average nightly rate of $105 when looking at both downtown and outskirt accommodations. Of course, downtown units were the most profitable of all. The long-term rental rate for these units was about $2,250 per month.

2024 Projection:

The demand for Airbnbs that can accommodate a larger group will always be in demand, especially in summer when there are concerts in town. During Stampede season, Calgary can charge very high prices, in particular if you are near the grounds.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,250/month

• Average Short-Term Rental Monthly Earnings (2023): $3,150/month

Grade: C

The revenue increase is expected to remain stable around the 40% mark. 

3+ Bedrooms (2024 Grade: B-)

2023 Performance:

Larger units do not have the same type of demand, especially if they are in the outskirts. Downtown units of 3+ bedrooms will attract more bookings in peak season between June and September. Downtown units can charge on average $230 per night, but on average throughout the city, an income of $150/night should be expected. The long-term rental rate was approximately $3,000 per month.

2024 Projection:

There is no reason to suppose that there will be less demand this year. Prices should remain stable.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $3,000/month

• Average Short-Term Rental Monthly Earnings (2023): $4,500/month

Grade: B-

The revenue increase is expected to remain stable around the 50% mark. 

Edmonton

Studio or 1-Bedroom (2024 Grade: D)

2023 Performance:

Edmonton's real estate market is much lower than some of the other cities on this list. Nightly rates reflect this decrease. Studio and 1-bedroom units in 2023 generated an average nightly rate of $55. Comparatively, the average long-term rental rate for similar units was around $1,300 per month. 

2024 Projection:

As long-term rental rates rise, short-term rental rates are likely to stay stable in Edmonton in 2024.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $1,300/month

• Average Short-Term Rental Monthly Earnings (2023): $1,650/month

Grade: D

The revenue increase is expected to remain stable around the 26.92% mark. 

2-Bedroom (2024 Grade: C+)

2023 Performance:

Like most of the cities on the list, two-bedroom units were the most popular type of accommodation in 2023. The long-term rental rate for these units was about $1,600 per month.

2024 Projection:

Demand in Edmonton is likely to remain stable in 2024.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $1,600/month

• Average Short-Term Rental Monthly Earnings (2023): $2,340/month

Grade: C+

The revenue increase is expected to remain stable around the 46.25% mark. 

3+ Bedrooms (2024 Grade: B-)

2023 Performance:

Income potential for units with 3 or more bedrooms vary dramatically depending on the location. In the outskirts, it is reasonable to assume you will have nightly rates of less than $120 per night. In downtown, they can be more than $300 on some days. On average throughout the city and throughout the year, an income of $105/night should be expected. The long-term rental rate was approximately $2,000 per month.

2024 Projection:

There is no reason to suppose that there will be less demand this year. Prices should remain stable.

Financial Comparison:

• Average Long-Term Rental Monthly Earnings (2023): $2,000/month

• Average Short-Term Rental Monthly Earnings (2023): $3,150/month

Grade: B-

The revenue increase is expected to remain stable around the 57.50% mark.