As the debate continues on how to address the nationwide challenges of housing availability and affordability, the discussion has now reached Whitehorse. The city is inviting the public to have their say on the issue via a survey on its website.

The City of Whitehorse is seeking public input on its recommendations for revising zoning and business regulations to address short-term rentals.

Earlier this year, the Housing and Land Development Advisory Committee (HLDAC) presented a report to Council aimed at improving access to housing in the City through the regulation of STRs.

The report stresses that changes in business licensing and zoning regulations are needed to implement its recommendations. It proposes tighter controls on STRs and clearer definitions of the types of STRs used. The changes aim to regulate the positive and negative impacts of STRs across the city.

Ben Pereira, president of Neighbourly North, which manages many STRs in Whitehorse, responded to the proposed changes with preliminary research notes. Those notes, based on analysis by data provider Airdna, suggest that Airbnb homes make up less than five percent of the total housing stock in Whitehorse.

Pereira stresses that STRs serve an important function in the housing market, as thousands of essential workers rent short-term accommodation in the city each year. He warns that the wrong regulations could lead to problems with supply and quality.

YukonDOCS, a program to recruit physicians for the Yukon, supported Pereira’s claims by confirming in a letter of recommendation from Neighbourly North that STRs assist in their recruitment efforts.

Pereira also points out that while STRs are currently regulated by municipal zoning plans like other residential rentals, there are no clear definitions of STRs in the current regulations. He welcomes the introduction of regulations that will not disrupt the housing market.

“I think it’s time for some regulations to be introduced in Whitehorse. But regulations that are supportive and smart and don’t disrupt the real estate market,” said Pereira.

Part of the effort to regulate STRs in Whitehorse is to align local regulations with rules proposed for the entire country.

In a press release on December 23, the federal government announced a draft law that would crack down on STR owners who do not comply with the regulations, by exempting them from income tax the costs of short-term rental income, and would apply if the operators violate regional or municipal licenses.

The HLDAC report notes that there are currently no municipal permitting and licensing requirements for STRs in Whitehorse. It recommends that STR operators meet basic health and safety standards to qualify for an annual business permit, thereby recognizing their commercial nature.

The report also raises concerns about the city’s ability to enforce the proposed changes. To support municipal enforcement, the federal government announced $50 million over the next three years in its 2023 Fall Economic Statement.

Earlier this year, in response to the ongoing policy debate about housing market challenges, Statistics Canada released an analysis of STRs in the Canadian housing market. The document examined a subset of STR units that are not currently serving as residences but have the potential to serve as long-term housing units, either as owner-occupied homes or as rental properties.

The analysis found that 0.9 percent of Yukon’s homes are currently rented out for short-term rentals and could also be used for long-term rentals. This is the highest figure in six years. The share of this type of housing in Yukon is well above the national average of 0.69 percent.

Contact Jake Howarth at [email protected]