How a former child star left real estate lenders on the hook and the Home of the Week: Canadian real estate news for August 2

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Tiny share of Canadian homes are Airbnbs that have potential to be long-term housing

With rental vacancy rates remaining at under 2 per cent in most major Canadian cities, housing experts have been trying to understand how short-term rentals, like Airbnbs and Vrbo rentals, are actually affecting the housing market. Now, a new Statistics Canada study finds that less than 1 per cent of the country’s housing stock are short-term rentals that could be turned into long-term rentals or permanent housing, writes Rachelle Younglai. Statscan’s report found the share of short-term rentals was “generally small” across the country. In Toronto and Vancouver, the percentage was 0.36 per cent and 0.45 per cent, respectively — something that they say is due to policies designed to prevent homeowners from removing supply from the market by turning units into short-term rentals.

How a former child actor’s crumbling real estate empire left hundreds of lenders on the hook

In February, mortgage broker Claire Drage, founder and CEO of Hamilton-based Windrose Group, sent a frantic e-mail to hundreds of her investors, notifying them that they were caught in what would become one of the largest real estate lending insolvencies in Canadian history, writes Shane Dingman. At the centre of it all is former actor Robby Clark – best known for a 2000 YTV kid’s show – who has recently confirmed he was 50-per-cent owner of all 11 companies named in the insolvency, and Drage’s largest borrower. Her financing allowed Mr. Clark to risk almost none of his own money as he went on a reckless buying spree that amassed more than 600 properties across Ontario. But by the time she had notified her investors, it was already out of control.

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Some B.C. companies try to adapt to new restrictions on vacation rentals

Short-term rentals have become vital amenities in many cities in British Columbia where tourism is central to the economy. But the province’s new rules around those short-term rentals — which include banning any rentals for less than three months, and registration with a provincial site — are pushing those cities and towns to adapt to the new rules to keep business flowing into their regions, writes Frances Bula. Local politicians and business owners have struck compromises with the province, such a special resort zoning that would keep vacation rentals out of regular residential zones.

Market bets surge for Bank of Canada interest rate cut next month, but economists are left guessing why

Last week, the Bank of Canada cut its key overnight rate to 4.5 per cent. In the moments both before and after that decision, swaps market probabilities suggested the odds of whether there would be another cut by September was pretty much down to a coin flip. But those probabilities have been aggressively climbing in the days since. Some economics experts note that even though the Bank of Canada is saying they plan to consider each potential rate cut individually, it appears that interest rates are going to be steadily going down for the next few months.

Home of the Week: Renovated historic mill is ‘part of the heritage’

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46 Concession Rd. S., Tamworth, Ont. — Full gallery here

Before undertaking a massive restoration project in 2004, this building was no more than the ruin of a former grist mill, which had been severely damaged by a fire in 1960. Now, the two-bedroom heritage home still retains elements of its stone mill history, but with modern comforts. The kitchen, which runs along one side of the room, has a stone-clad island and breakfast bar. Next to the kitchen, a dining area has French doors opening to a balcony, and a den tucked into one corner of the great room provides a cozy spot for reading. There’s also a basement for storage, which features the original footprint of the mill’s operation (in case you want to get into the stone milling business).