The federal government plans to limit short-term rentals to help Canadians reduce their living costs, The Globe and Mail reported.

Two government sources told the Globe that the government is determined to get back on track with a plan approved by cabinet in August to make housing affordability and cost of living the central issues over the coming months with targeted announcements by Prime Minister Justin Trudeau and key ministers.

One initiative could see Ottawa incentivize municipalities to limit the number of Airbnb units through bylaw changes covering long-term STRs, according to the two officials.

The report comes after Bloomberg reported that more Ontario rental-housing landlords are looking to take their properties off the long-term market and list them as STRs to avoid difficulties with tenants and debt repayments

Canadian housing regulators are looking to crack down on STRs to boost rental-housing supply amid a severe national shortage. The B.C. government plans to introduce new STR rules this fall.

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