British real estate firm Nested analyzed home price data from HSBC and the World Bank and average rental costs in 75 global cities which revealed just how much faster short-term rentals can bring a return on investment.
In Canada, Montreal ranks the best. To recoup the cost of an average-priced home ($354,371) would take 273 months at an average rent of $1,296. Short-term rentals would bring in $4,816 per month, recouping the cost of the home in just 74 months.
In Toronto, an average home costing $615,737 would mean renting for 297 months at an average $2,073 rent; with short-term rentals, the cost would be recouped in just 135 months.
Meanwhile, the cost of an average Vancouver home ($865,344) would be recouped in 214 months from short-term rentals compared to 341 months with long-term tenants.
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Homeowners could recoup the purchase price of their homes faster through short-term rentals such as Airbnb compared to a long-term rental strategy.