Discover the top 10 most profitable Airbnb markets in Canada, each offering unique opportunities for investors. Learn about the key factors driving growth and why Canada is a hotspot for short-term rental investments.

The Top 10 Most Profitable Airbnb Locations in Canada

With a remarkable C$5.1 billion in revenue in 2023 and a 50% increase from 2019, the Canadian STR market is thriving. 

We rank the top 10 most profitable Airbnb locations in Canada by their AirDNA market score and their net return on investment (ROI)

Canada's STR market is shaped by strong seasonality, the dominance of individual hosts, and regional regulations.

Imagine Canada as a vast landscape dotted with hidden treasures, each city offering its own chest of opportunities for smart investors. From the urban canyons of Toronto to the pristine shores of Vancouver Island, Canada beckons with promise in its short-term rental market. 

Like a map to buried riches, we unveil the most profitable Airbnb locations in Canada. In these ten destinations, vibrant culture, economic dynamism, and natural beauty converge to create lucrative investment prospects. Whether you’re drawn to the bustling streets of Montreal or the serene lakes of Winnipeg, each destination holds a unique tale of profitability waiting to be told.

Read on for the best cities for Airbnb investment in Canada and uncover insights that will empower you to seize the potential of this flourishing market.

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Why Airbnb Investment in Canada Pays Off 

Canada's STR market is experiencing a remarkable surge, defying post-pandemic expectations and cementing its place as a key player in the industry. From coast to coast, STRs are not just recovering from COVID-19 interruptions—they're thriving. The market's robust growth in both supply and demand, coupled with impressive revenue gains, paints a picture of a sector that's ripe for investment. 

STR’s generated C$5.1 billion in 2023, a staggering 50% increase from 2019 and 9.5% growth since this time last year.  

Supply has grown 10% since 2019, and demand has increased 3% compared to pre-pandemic levels.

Canada has an average 55.3% occupancy rate nationwide, which is approximately 6% lower than 2019 occupancy levels.

STRs in Canada have an average ADR of C$261, a 44.5% increase in nightly rates versus 2019.

Short-term rentals account for 19% of all lodging spend in Canada, which translated to 19 million booked nights in 2023. However, Airbnbs don’t capture an equal share of lodging spend in each Canadian province. The following map gives you an idea of where short-term rentals are a more common lodging choice for travelers. On Prince Edward Island, 31.1% of lodging spend is invested in vacation rentals. On the other end of the spectrum, short-term rentals only account for 4.9% of lodging spend in Saskatchewan.

The 10 Most Profitable Airbnb Locations in Canada

For those looking to dive into the STR market, Canada is serving up opportunities on a silver platter. From coast to coast, the country offers a diverse range of investment possibilities.

We ranked the best airbnb locations in Canada based on their market score, AirDNA’s proprietary metric that tells you how well a market is performing out of 100. In cases where the top airbnb locations in Canada share the same market score, we used the projected net return on investment (ROI) as a dealbreaker.

The net ROI takes into account both operating costs and home prices to give a more realistic estimate of potential profits. We use a 50% expense ratio in our ROI calculation, which assumes that owners will spend half of their earned revenue on running their vacation rental business. Note that revenue potential figures are based on annual yield if a property is listed year-round. In reality, though, the majority of short-term rental owners are not offering their properties 365 days per year. Most hosts’ earned revenue will fall short of these projected revenue numbers.

We go into methodology in greater detail in a later section—for now, let’s get to the good stuff!

Based on our analysis of AirDNA's market data and performance metrics, here are the top 10 most profitable Airbnb locations in Canada:

The City of Champions earns the name in our roundup of Canadian STR markets. Edmonton, Alberta's capital, offers a unique blend of government, business, and tourist appeal for STR investors. Known as the "Festival City," it hosts over 50 annual events, drawing visitors year-round. West Edmonton Mall and the city’s extensive River Valley park system add to its attractions. 

For investors, Edmonton's low median condo price of just over C$200,000 provides an accessible entry point. With an annual revenue potential of C$20,567 and a solid 59% occupancy rate, properties can generate steady income, especially during the summer festival season. The average daily rate of C$129 allows for competitive pricing, attracting both budget and comfort-seeking travelers. This combination of affordable real estate, cultural appeal, and consistent tourist influx makes Edmonton the #1 market for STR investors looking to balance cost and potential returns.

As Canada's capital, Ottawa boasts a unique appeal for STR investors. The city attracts a steady stream of government officials, diplomats, and tourists drawn to landmarks like Parliament Hill and the Rideau Canal. 

Despite a higher median condo price of C$425,000, Ottawa's STR market shows strong potential with an annual revenue of C$26,893. The 57% occupancy rate and higher average daily rate of C$166 indicate that properties command a premium when booked. While the initial investment might be higher, there's potential for strong returns.

Winnipeg is known for its rich cultural scene, including the Royal Winnipeg Ballet and numerous festivals. The city’s position as a central prairie hub also draws regional business travelers. 

With a revenue potential of C$20,328 and a median condo price of C$225,000, Winnipeg presents a balanced investment opportunity. The 56% occupancy rate and C$133 average daily rate indicate steady demand. While these figures are slightly lower than some larger cities, they suggest a stable market with reasonable entry points for investors. Winnipeg's growing reputation as a cultural destination could provide opportunities for STR properties catering to tourists seeking authentic local experiences, potentially driving future growth in the market.

As Canada's largest city, Toronto offers a robust STR market with high potential returns. The city's diverse attractions, from the CN Tower to world-class museums, coupled with its status as a major business hub, brings in a steady flow of visitors. 

The high revenue potential of C$36,300 reflects strong demand, while the 59% occupancy rate indicates consistent bookings. The average daily rate of CC$223 allows for premium pricing, especially in prime locations. However, the expensive median condo price of C$626,000 presents a significant barrier to entry. For investors who can manage the initial investment, Toronto's market offers the potential for substantial returns, driven by its year-round appeal to both tourists and business travelers. The city's continuous growth and global reputation contribute to a dynamic and potentially lucrative STR landscape.

Québec City, with its UNESCO World Heritage status and European charm, offers a highly attractive STR market. The high revenue potential of C$44,199 and strong 64% occupancy rate reflect the city's popularity among tourists. 

The average daily rate of C$232 allows for premium pricing, especially in the historic Old Town. With a relatively affordable median condo price of C$379,500, Québec City stands out as an investment opportunity ripe for the picking. The city's year-round appeal, from summer festivals to winter carnivals, translates to consistent guest traffic. For investors, Québec City's unique cultural position, historic significance, and strong tourism infrastructure create a potentially lucrative STR market with a lower barrier to entry compared to some larger Canadian cities.

Mississauga, part of the Greater Toronto Area, presents a unique STR opportunity. Its proximity to Toronto and Pearson International Airport makes it an easy choice for business travelers and tourists seeking more affordable accommodations. The revenue potential of C$23,553 and 57% occupancy rate suggest a stable market. The average daily rate of C$152 offers competitive pricing compared to Toronto. Mississauga's own attractions, including the Square One Shopping Centre and waterfront parks, add to its appeal. 

The high median condo price of C$655,200 may be a challenge for some investors. For those who can swing it, however, Mississauga offers a balance between urban amenities and suburban charm. Mississauga offers guests a quieter alternative to Toronto while still being close to major attractions and business centers.

Vancouver's STR market boasts impressive numbers, with the highest revenue potential and occupancy rate among the top 10. The city's natural beauty, outdoor activities, and position as a gateway to Asia drive strong tourism. 

However, the high median condo price of C$776,500 presents a significant investment hurdle. The average daily rate of C$266 reflects the premium visitors are willing to pay for Vancouver's amenities. Investors should note new BC regulations effective May 1, 2024, which restrict STRs to principal residences and one additional unit, potentially impacting market dynamics. Despite these changes and the high entry cost, Vancouver's strong performance metrics suggest potential for solid returns. 

Burnaby, part of Metro Vancouver, offers a unique STR proposition. Its proximity to Vancouver and lower average daily rate of C$176 make it an ideal alternative for budget-conscious travelers. The 64% occupancy rate indicates strong demand. However, Burnaby has the second highest median condo price on this list behind Canmore, and the C$818,278 price tag may deter some investors. 

Burnaby's own attractions, including Burnaby Mountain and Metrotown shopping center, make it a destination in and of itself. The revenue potential of C$30,212 suggests a healthy market. Like Vancouver, Burnaby is subject to new BC regulations from May 2024, limiting STRs to principal residences and one additional unit. 

For investors, Burnaby represents a balance between access to Vancouver's amenities and a more suburban environment, but carefully consider the new regulations when planning your investment.

Montreal's STR market combines strong performance with relatively affordable entry costs. The city's vibrant culture, festivals, and historic charm drive a steady influx of tourists. Montreal offers solid returns with a revenue potential of C$42,080 and a 60% occupancy rate.

The average daily rate of C$245 allows for competitive pricing while maintaining profitability. The median condo price of C$403,000 is more accessible compared to Toronto or Vancouver, making Montreal an attractive option for investors. Montreal’s Old Port offers picturesque cobblestone streets lined with quaint shops and cafes, while Mount Royal Park provides stunning views of the city skyline. Its rich cultural heritage, bilingual charm (French and English), and bustling nightlife make it a dynamic destination for travelers and investors alike that seek both cultural immersion and lively entertainment.

Median Condo/Apartment Price: C$1,549,068

Canmore, nestled in the Rocky Mountains near Banff National Park, offers a premium STR market with the highest revenue potential among the top 10. The high revenue potential comes at a high median condo price, though—a whopping C$1,549,068. 

If you are able to get your foot in the door as an investor, Canmore’s stunning natural beauty and outdoor recreational opportunities drive strong tourism year-round. The high occupancy rate of 68% and ADR of C$376 reflect the destination's popularity and upscale appeal. STR hosts in this area cater to high-end tourists seeking mountain getaways. The town's proximity to Calgary and its airport also contributes to its accessibility and appeal for both domestic and international visitors.

Methodology: How We Ranked Canada's Top STR Markets

Our list of most profitable Airbnb locations in Canada is ranked by Market Score. AirDNA’s Market Score is a unique score that tells you how well a market is performing out of 100 based on 4 different factors:

Rental Demand: Rental demand measures how popular a market is in terms of bookings. The rental demand score shows how booking performance has changed from the same time last year. A high score indicates high booking demand.

Revenue Growth: This factor measures whether rental listings in this location earned more this month than they did during the same month last year. We calculate this by measuring year-over-year (YOY) change in Revenue per Available Rental (RevPAR).

Seasonality: This factor considers how much seasonality affects a market. In other words, are bookings made at specific times of the year or are they consistent month after month? A high score indicates low seasonality and consistent bookings.

Regulation: Our regulation score measures how strictly short-term rentals are regulated in a given market. A high score means fewer regulations. 

These 4 factors are synthesized to create one overall Market Score.

Note that the Market Score for U.S. locations takes into account a fifth factor, Investability. Investability considers whether a market presents a good investment opportunity. The investability score is calculated by measuring average revenue potential against average mortgage cost. While the Market Score for Canadian cities does not take into account Investability, our net ROI calculations offer similar insights.  

What You Should Know about Canada’s STR Market 

Canada's short-term rental market experiences a significant surge during the summer months, with 31% of annual revenue earned during just July and August. This seasonality presents both opportunities and challenges for STR hosts. Other notable peaks in demand occur around holidays such as Christmas, Thanksgiving, and Victoria Day, indicating the importance of adjusting pricing and availability to match fluctuating demand throughout the year.

If you’re entering Canada’s highly seasonal market, be sure to read out guide on how to prepare for peak season. 

More than ⅓ of guests are foreign travelers

As of 2023, foreign travelers accounted for 37% of short-term rental reservations in Canada. This represents a significant rebound from the low of 14% in 2021. The trend shows a steady increase in foreign bookings since 2021, approaching pre-pandemic levels of 38% seen in 2018. 

This international appeal underscores the importance of catering to a diverse, global clientele. Guests are increasingly looking for local, authentic experiences, and offering an Airbnb guidebook or welcome basket that provides a taste of your area might be the touch that inspires international guests to leave a positive review.

Canada is a land of opportunity for smaller hosts

The Canadian short-term rental market is dominated by individual operators. An impressive 96% of hosts are individuals, managing 75% of all listings. This statistic highlights the accessibility of the market for small-scale operators and homeowners. 

It demonstrates that the Canadian STR landscape is not controlled by large corporations, but rather by a diverse array of individual hosts. This democratization of the hospitality industry provides opportunities for many Canadians to participate in, and benefit from, the growing short-term rental economy.

Minimum stay requirements are a prevalent feature in many Canadian short-term rental markets. 

Vaughan leads with 65.7% of listings requiring a minimum 30-day stay, followed closely by Laval at 62.6% and Gatineau at 59.2%. Even major cities like Ottawa have over half (52.2%) of their listings with this requirement. 

This trend varies across the country, with cities like Toronto (32.0%) and Vancouver (35.5%) having a lower proportion of long-term minimum stays. These requirements can significantly impact the market dynamics, affecting both guest booking patterns and host strategies in different regions.

Understand the investment potential of any address in the world.

Canadian short-term rentals excel in cleanliness, getting the highest review ratings amongst major countries including the US, UK, France, Japan, and Mexico. Canada also leads in communication and location scores, and performs strongly in other categories such as check-in and accuracy. These high ratings reflect the quality of Canadian STRs and how high the bar is set for new investor-operators entering the market.

Overwhelmed by how much there is to clean? We’ve got a cleaning checklist for you.

As of May 1, 2024, British Columbia implemented regulations restricting short-term rentals to principal residences and one additional unit in 65 communities. The impact was swift and significant, with the number of distinct monthly listings in B.C. decreasing by 3.6% from April to May 2024. The effect varied widely by location, with the communities under new regulation experiencing a 6.2% drop in monthly listings, compared to only a 1% decline in unregulated areas. 

These changes are reshaping the STR landscape in B.C., potentially affecting availability and pricing for travelers while presenting new challenges and opportunities for hosts. Don’t write off B.C, but be sure to get a solid understanding of how regulations can impact your short-term rental strategy. 

Gain insights into the revenue and occupancy trends in your market.

Take Charge of Airbnb Investment in Canada

As you consider the best airbnb markets in Canada, remember to leverage tools like AirDNA to uncover detailed insights into market performance, demand trends, and regulatory landscapes. Market analysis will help you narrow down your investment focus. Whether you're aiming for high returns in Vancouver or exploring emerging markets like Winnipeg, strategic planning and data-driven decision-making will be key to your success.

Start applying these insights today to position yourself at the forefront of Canada's dynamic short-term rental market. Dive into the details, assess potential risks, and seize the opportunities that align with your investment goals. With Canada's STR market flourishing, there's no better time—or place—to embark on your journey into profitable Airbnb investments.

Canada is a goldmine for short-term rental investors eyeing its diverse and profitable landscape. We’ve got the scoop on the best STR markets in Canada.

The Top 10 Most Profitable Airbnb Locations in Canada

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