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Explore how Canmore’s Housing Action Plan affects tourist-zoned properties and local housing availability. Learn about the tourist zoning tax implications for full time residents, and the potential impact on the residential market in Canmore.
Canmore Housing Action Plan: New Rules on Tourist-Zoned Homes – Who Really Benefits?
Starting in the 2025 tax year, Canmore’s Housing Action Plan will implement sweeping changes to tourist-zoned properties. All existing tourist homes will be taxed at the non-residential rate, with no option for personal use declarations. For those continuing short-term rentals, the tourist zoning will remain intact, requiring a valid business license in all advertisements.
Incentives That Lead to Unintended Consequences
To encourage long-term resident housing, the town is waiving fees for converting tourist homes to residential zoning for a two-year period. However, this conversion can decrease property values, pressuring full-time resident owners of tourist homes to either pay the higher tax rate or sell to investors focused on short-term rental income, ultimately reducing the local housing stock available for residents. These sellers will likely buy residential properties, further reducing homes for long-term residents, counteracting the plan’s intentions.
Impact on Local Housing Availability
Ironically, the policy may drive full-time residents into the residential market, reducing inventory and increasing competition rather than creating more livable space. The initiative is prompting questions about whether it is more a tax revenue move than a housing solution.
For more information on Canmore’s 3 step Housing Action Plan, visit Canmore Housing Action.
