Most Profitable Airbnb Locations in Canada Revealed

Discover Canada's most profitable Airbnb locations for lucrative short-term rentals, from urban centers to stunning landscapes. Invest wisely today!

Canada, a vast expanse of breathtaking landscapes and vibrant urban centers, presents a veritable treasure trove for astute investors in the short-term rental (STR) market. From the bustling streets of Toronto to the serene vistas of Vancouver Island, the nation is replete with opportunities for those willing to navigate its dynamic Airbnb landscape. 

In this exploration, we unveil the most profitable Airbnb locations across Canada, where cultural vibrancy, economic vitality, and natural allure coalesce to create enticing investment prospects. Whether one is captivated by the artistic pulse of Montreal or the tranquil lakes of Winnipeg, each locale narrates a unique story of profitability, ripe for discovery. 

The Case for Airbnb Investment in Canada

The Canadian STR market is currently experiencing a remarkable resurgence, defying post-pandemic expectations and solidifying its status as a formidable player in the global arena. From coast to coast, STRs are not merely recovering from the disruptions of COVID-19; they are flourishing. The robust growth in both supply and demand, coupled with impressive revenue gains, paints a compelling portrait of a sector primed for investment.

Key Statistics at a Glance:

- STRs generated a staggering C$5.1 billion in 2023, marking a 50% increase from 2019 and a 9.5% growth since last year.

- Supply has expanded by 10% since 2019, while demand has risen by 3% compared to pre-pandemic levels.

- The national average occupancy rate stands at 55.3%, approximately 6% lower than in 2019.

- STRs in Canada boast an average daily rate (ADR) of C$261, reflecting a 44.5% increase in nightly rates since 2019.

However, the distribution of Airbnb revenue varies significantly across provinces. For instance, Prince Edward Island sees 31.1% of lodging expenditure directed towards vacation rentals, while Saskatchewan lags behind with a mere 4.9%.

The Top 10 Most Profitable Airbnb Locations in Canada

For those eager to plunge into the STR market, Canada offers a veritable smorgasbord of investment opportunities. Our rankings of the best Airbnb locations are based on market scores derived from AirDNA’s proprietary metrics, which evaluate market performance on a scale of 100. In instances of tied scores, projected net return on investment (ROI) served as the tiebreaker, factoring in operating costs and property prices to yield a more realistic profit estimate.

1. Edmonton

- Revenue Potential: C$20,567

- Occupancy Rate: 59%

- Average Daily Rate: C$129

- Median Condo Price: C$200,968

Dubbed the "City of Champions," Edmonton's unique blend of government, business, and tourism makes it a prime candidate for STR investment. The city's extensive festival calendar and attractions like the West Edmonton Mall contribute to its appeal.

2. Ottawa

- Revenue Potential: C$26,893

- Occupancy Rate: 57%

- Average Daily Rate: C$166

- Median Condo Price: C$425,000

As the capital of Canada, Ottawa attracts a steady influx of government officials and tourists. Despite a higher median condo price, the STR market shows promising revenue potential.

3. Winnipeg

- Revenue Potential: C$20,328

- Occupancy Rate: 56%

- Average Daily Rate: C$133

- Median Condo Price: C$225,000

Winnipeg's rich cultural scene and central location make it an attractive option for STR investors, offering a balanced investment opportunity.

4. Toronto

- Revenue Potential: C$36,300

- Occupancy Rate: 59%

- Average Daily Rate: C$223

- Median Condo Price: C$626,000

Toronto, Canada's largest city, boasts a robust STR market with high potential returns, driven by its diverse attractions and business opportunities.

5. Québec City

- Revenue Potential: C$44,199

- Occupancy Rate: 64%

- Average Daily Rate: C$232

- Median Condo Price: C$379,500

With its UNESCO World Heritage status, Québec City offers a captivating STR market characterized by strong tourism and cultural appeal.

6. Mississauga

- Revenue Potential: C$23,553

- Occupancy Rate: 57%

- Average Daily Rate: C$152

- Median Condo Price: C$655,200

Mississauga's proximity to Toronto and its own attractions make it an appealing STR destination, despite its high median condo price.

7. Vancouver

- Revenue Potential: C$51,324

- Occupancy Rate: 69%

- Average Daily Rate: C$266

- Median Condo Price: C$776,500

Vancouver's STR market boasts the highest revenue potential and occupancy rate among the top ten, although its high entry cost poses a challenge for investors.

8. Burnaby

- Revenue Potential: C$30,212

- Occupancy Rate: 64%

- Average Daily Rate: C$176

- Median Condo Price: C$818,278

Burnaby offers a unique STR proposition, balancing access to Vancouver's amenities with its own attractions.

9. Montreal

- Revenue Potential: C$42,080

- Occupancy Rate: 60%

- Average Daily Rate: C$245

- Median Condo Price: C$403,000

Montreal's vibrant culture and relatively affordable entry costs make it an attractive option for STR investors.

10. Canmore

- Revenue Potential: C$82,299

- Occupancy Rate: 68%

- Average Daily Rate: C$376

- Median Condo Price: C$1,549,068

Nestled in the Rocky Mountains, Canmore presents a premium STR market, albeit with a high median condo price that may deter some investors.

Insights into Canada’s STR Market

The summer months are particularly lucrative for STRs, accounting for 31% of annual revenue during July and August. Additionally, foreign travelers now represent 37% of short-term rental reservations, reflecting a significant rebound from the pandemic's lows.

Notably, the Canadian STR market is predominantly operated by individuals, with 96% of hosts managing 75% of all listings. This democratization of the hospitality industry presents opportunities for smaller hosts to thrive.

In conclusion, Canada’s STR market is a vibrant tapestry of opportunities, where savvy investors can navigate the complexities of this burgeoning sector. With a blend of cultural richness, economic potential, and natural beauty, the Canadian landscape is indeed a treasure map for those seeking to capitalize on the lucrative world of short-term rentals.