Calgary's short-term rental market grew from roughly 4,000 active listings in 2019 to over 7,000 in 2024 before flattening as municipal licensing tightened. For owners weighing Airbnb against a traditional 12-month lease, the right answer in 2026 depends on neighbourhood, property type, available time, and tolerance for regulatory uncertainty.
Gross revenue: short-term usually wins (until you check net)
A 1-bedroom Beltline condo renting long-term at $1,800/month grosses $21,600/year. The same unit on Airbnb might gross $32,000–$38,000/year at 65–70% occupancy and a $135 average nightly rate (AirDNA-style estimates for the Beltline submarket). Short-term wins gross by 50–80%. The question is what happens to the net.
Net cash flow: the gap closes fast
On a $35,000 STR gross: cleaning ($5,000), supplies and consumables ($1,500), platform fees ($1,800), STR management (typically 20–25%, so $7,000–$8,750), higher insurance ($600 premium), higher utilities tenant-doesn't-pay ($2,400), GST collected and remitted but not all flowing to you. Realistic net: $14,000–$18,000. Long-term net on the same unit after vacancy, maintenance, and management: roughly $14,500–$16,500. The premium for the workload is often less than $3,000/year.
Calgary STR regulation in 2026
Calgary requires a business licence for short-term rentals (under 30 days). Tier 1: primary residence with host on-site, lower fees. Tier 2: any other short-term rental, higher fees, more inspection requirements. Municipal pressure on STRs is rising across Canada (Quebec, Vancouver, Toronto have all tightened), and Calgary council has debated further restrictions. Buying for STR in 2026 means accepting that the rules can change.
When short-term still wins
High-demand neighbourhoods (Beltline, downtown, Mission, Inglewood), proximity to major employers or hospitals, parking included, unique character or design, owner willing to do quick turns or pay a great manager. In these conditions STR can net 30–40% more than long-term. Outside of those conditions, the workload and risk usually swing the math toward long-term.
The hybrid: mid-term rentals (28–90 days)
Mid-term rentals, corporate housing, travel nurses, insurance displacement, sit in a sweet spot: GST-exempt at 28+ days, far less turnover than nightly, premium pricing vs long-term. UrbanLease has seen growing demand in this segment in Calgary 2024–2026. It's the right answer for many properties that are not quite right for either pure strategy.