Whitehorse is considering regulating short-term rentals

The debate over short-term rentals continues this week with the release of survey results from the City of Whitehorse.

The data was collected in August and September. The majority of respondents, 81 percent, were Whitehorse residents, which also included out-of-territory short-term rental operators and short-term rental users.

The city also consulted with Indigenous governments and nonprofits such as the Yukon Anti-Poverty Coalition, as well as organizations such as the Tourism Industry Association and the Yukon Medical Association.

Thirty-nine percent voted in favor of implementing regulations, while 36 percent voted in favor of maintaining the status quo.

The city said the findings could be used to develop a regulatory framework for managing short-term rentals.

How many short term rentals are there in Whitehorse?

Because short-term rental operators are currently not required to have a business license in Whitehorse – something that 64 percent of respondents said should change – it is hard to pin down how many there are.

But from the available figures, it appears that those looking for a long-term apartment in Whitehorse are having better luck finding a one- or two-night stay.

According to the Yukon Bureau of Statistics, the vacancy rate for private rental properties in Whitehorse was 1.8 per cent when it was last measured in April 2024, with a total of 2,230 private rental units, of which only 40 were vacant.

Market research firm PriceLabs, which collects data from Airbnb and VRBO, estimates the number of active short-term rental properties in Whitehorse at 260.

AirDNA, another company offering the same service, reports 218 active listings in Whitehorse.

Ben Pereira, president and CEO of short-term rental company Neighborly North in Whitehorse, is aware of the numbers appearing online, but says the actual number of short-term rentals in the city is much lower.

“The many, many times I have gone to City Hall to talk about Airbnb in the city of Whitehorse, the number I often mention is 150,” Pereira said. “And then it concerns the entire housing supply within the municipal boundary.”

Pereira hosts 57 listings on Airbnb. On the Neighborly North website, the company claims to operate more than 60 short-term rental units. The company was one of a number of organizations invited to participate in the city’s research through an interview process.

“If you just filter by entire houses, there are dozens and dozens of listings for the Black Spruce Motel. I think the Sternwheeler hostel has a listing, Midnight Sun and other licensed bed and breakfasts, campgrounds, trailers and RVs,” Perriera said.

When CBC went through listings on PriceLabs and AirDNA and removed duplicate listings, traditional hotels and listings outside municipal boundaries, and added short-term rental listings that don’t appear on Airbnb or VRBO, the number of active listings appeared to hover around 250.

The majority of these listings offered an entire apartment or house.

What does the average short-term rental look like?

A total of 158 short-term rental companies responded to the survey, but fewer than 40 shared information about the rental companies they operate.

According to the city’s research, downtown single-family homes are the most common form of short-term rentals in Whitehorse. Most operate year-round and function as secondary real estate investments.

The majority of guests are tourists, although visiting professionals come in second.

AirDNA and PriceLabs said the average short-term rental unit in Whitehorse generates between $2,700 and $3,000 per month in total revenue.

For comparison, the average long-term rental price in Whitehorse in April 2024 was $1,440 per month.

What would regulating the industry look like?

In the survey, the city asked for feedback on a range of policy options, from limiting the number of short-term rental properties in residential areas to limiting the number of days per year that short-term rental properties can be available for rental.

The most popular policy options among respondents are to require short-term rental operators to obtain a business license from the city annually and include that licensing information in their listings.

Kate Mechan, executive director of Yukon nonprofit Safe at Home, has long advocated for this type of regulation in Whitehorse. Safe at Home was also one of the groups consulted for the city’s recent investigation.

“We… had a call to action years ago about regulating short-term rentals,” Mechan said in an email to CBC.

In 2022, the organization said to regulate the industry was one of several policies that would help address the housing crisis and reduce homelessness in Whitehorse.

Although numerous academic studies Because short-term rentals lead to higher rents and home prices, especially in small and rural areas, the impact of regulation is less clear.

British Columbia may soon serve as a Canadian case study.

The strictest requirement under consideration in Whitehorse — which would limit short-term rental operators to renting out their primary residence or a secondary suite on the same property — went into effect in the province last May.

In September, McGill professor David Wachsmuth found in a study commissioned and funded by the British Columbia Hotel Association that in communities with short-term rental regulations in place, rents fell 5.7 percent and the supply of short-term rentals fell 16 percent.

But in Whitehorse, Pereira is confident that implementing similar regulations will not impact access or affordability.

“The vast majority of the inventory that supplies the short-term rental market is of a condition where the owners cannot or do not want to rent them out as traditional permanent housing,” he said. “Airbnb’s regulations will not increase rental supply in the long term.”

A spokesperson for the City of Whitehorse said work is underway to develop several short-term rental policy options, and there will be more opportunities for public feedback.