Report: Montréal seasonal short-term rental ban risks millions in tourism revenue

Key Takeaways

• Montréal is at risk of losing more than $19 million in visitor spending due to a projected 26,000-night accommodation shortfall during the 2026 Formula 1 Canadian Grand Prix and the UCI World Cycling Championships.
  
  
• Hotel rates are expected to surge again, with past Grand Prix weekends showing price spikes of more than 160 per cent when supply is constrained.
  
  
• Targeted policy updates—giving Montréal residents the flexibility to host in their principal residence year-round, supported by a simpler, more efficient permitting system—are essential to ensure Montréal can meet demand during its biggest moments.
  
  

A new independent analysis by Raymond Chabot Grant Thornton (RCGT)¹ finds that the City of Montréal’s municipal bylaw—which limits short-term rentals in residential neighbourhoods from June 10 to September 10—will create a deficit of more than 26,000 accommodation nights during two of the city’s most important and highly attended international events in 2026: the Formula 1 Canadian Grand Prix (May 22–24) and the UCI World Cycling Championships (September 19–27).

According to the report, the current regulation is projected to cost Montréal more than $19 million in lost economic activity, as both events fall outside the City’s 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.

As Montréal 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‑term rentals reduces the city’s ability to welcome visitors and fully benefit from the economic activity they generate. By lifting the seasonal ban and simplifying registration, Montréal can support local businesses year‑round, maximize visitor spending, and strengthen its position as a world‑class destination.

Airbnb is urging the City to make two focused, practical updates:

• End the seasonal ban for principal‑residence hosts. Montréalers should be able to host in their principal residence year‑round to support a strong, four‑season tourism economy. The City should also preserve the existing principal‑residence 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.
  
  
• Move to a simple, fully online permit system. The current requirement for a mandatory in‑person 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‑friendly for eligible hosts.
  
  

RCGT’s analysis finds that Montréal faces a shortfall of more than 26,000 accommodation nights during the 2026 Formula 1 Canadian Grand Prix and the UCI World Cycling Championships—over 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.

Montréal would also forfeit more than $19 million in visitor spending because of the lodging shortage—over $7 million tied to the Grand Prix and another $12 million during the Cycling Championships—reducing what visitors would have otherwise spent on restaurants, entertainment, transportation, and retail across the city.

When demand exceeds supply, prices surge. CoStar ² 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 Montréal.

“Montréal is preparing to welcome two of the world’s premier sporting events, yet current seasonal limits on short‑term rentals restrict the city’s flexibility at the very moment demand will be at its peak. We appreciate that the Mayor has acknowledged the bylaw isn’t working as intended and has expressed openness to lifting the ban. Updating the rules to allow principal‑residence hosts to operate year‑round, streamline permitting, and maintain existing paths to hosting in the zones that already support Montréal’s 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 Montréal’s neighbourhoods and businesses.”

Louis-Martin Leclerc, Policy Manager, Airbnb

“According to our analysis, the City of Montreal’s 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.”

Jean-Philippe Brosseau, Partner, Economic Studies, Raymond Chabot Grant Thornton

Additional findings from RCGT ³ show that Montréal’s strict short‑term rental regulations did not improve vacancy rates or long‑term rental prices. Montréal’s experience aligns with what’s been seen in cities like NYC, Barcelona, and Amsterdam, where similarly restrictive policies failed to ease housing pressures and instead coincided with rising rents and surging hotel prices. Without targeted, evidence‑based updates, Montréal risks keeping a system that limits accommodation supply precisely when the city stands to benefit most.

The seasonal ban may be doing more harm than good. In 2025, Montréal 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.

For many locals, hosting has become a financial necessity. In 2025, 54 per cent of Québec 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.

Beyond supporting residents, these listings drive hyper-local economic growth. The typical Montréal guest spends an average of $245 per day—excluding lodging—with 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.

Updating Montréal’s short‑term rental rules is essential to giving residents, businesses, and the tourism sector the flexibility they need during the city’s biggest moments. With targeted changes, Montréal can ensure it remains competitive and once again ready to welcome the world.

¹Raymond Chabot Grant Thornton study

²Raymond Chabot Grant Thornton study

³Raymond Chabot Grant Thornton study