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Tourist Home? Residential Use? What Canmore Property Owners Need to Know About Recent Land Use Changes: Understanding Canmore's Evolving Land Use Designation for Tourist Accommodations

In Canmore, we often refer to "zoning" when talking about how a property can be used — but technically, that's not the correct term here. The Town of Canmore uses land use designations under its Land Use Bylaw (LUB), which carry the same purpose: regulating what kind of development and activity is permitted on a property. So while “zoning” isn’t official terminology, it’s commonly used in real estate and by the public because it gets the point across.

One designation that’s been under increasing scrutiny is Tourist Home, which allows a dwelling unit to be used for both full-time living and short-term rental (e.g., Airbnb or VRBO). This hybrid use is rare — and valuable — but recent changes to the Land Use Bylaw and taxation structure are poised to significantly reshape how these properties are used and valued.

So, What’s Changing?

Over the past year, the Town has made a clear policy shift to discourage short-term rentals in residential areas. Key changes include:

  • Tourist Homes will no longer be allowed as a permitted use going forward, meaning no new Tourist Home properties will be approved. Existing ones will be “legally non-conforming,” meaning you can keep operating — but if you stop renting it short-term for six consecutive months, you lose the right.

  • All Tourist Homes will now be taxed at the non-residential rate, regardless of how the owner personally uses the home. Previously, owners could self-declare personal use and pay the lower residential rate. That subclass has now been eliminated.

  • You can voluntarily convert your Tourist Home to residential, and the Town has waived the rezoning application fees (until December 31, 2026). But — and this is important — this decision is irreversible. Once a Tourist Home is converted to residential, it cannot be converted back.

What If You Use Your Tourist Home as a Full-Time Residence?

If you own a Tourist Home but don’t actually rent it out short-term — maybe you live there full-time or rent to a long-term tenant — this change presents a tough choice.

On paper, converting it to a residential designation saves you money on your property tax bill (since non-residential mill rates are about 3x higher). But here's the trade-off: you’ll almost certainly lose resale value.

Tourist zoned homes in Canmore typically sell for 20–30% more than comparable residential properties, simply because of that short-term rental flexibility. That’s a huge premium. If you bought when the market had already priced in that flexibility (and especially if you paid peak market rates), giving up that designation could actually put you underwater if you ever need to sell.

It’s a personal choice:

  • Save thousands each year in taxes but risk tens (or hundreds) of thousands in equity

  • Or pay the higher tax rate and preserve the property’s full market value

Some owners might find a balance by keeping the Tourist designation but renting out their unit during personal vacations or shoulder seasons to offset the tax hit. That was, after all, the original spirit of the designation — not full-time Airbnb hotelization, but part-time flexible use. The rise of online booking platforms changed the game, but the core model still works.

Opinion: This Isn’t Going to Help Local Housing Inventory

Let’s call a spade a spade — I don’t believe this policy change will result in more long-term housing options for locals.  And I don’t think it’s going to bring down housing prices, even for this one segment of the market.

Why? Because:

  • The value of these properties is in the Tourist designation.

  • Removing the residential tax subclass removes the incentive to use it long-term.

  • Most owners who bought these units as investments won’t willingly devalue them by 20–30% just to save on taxes.

If anything, this change may prompt the opposite effect: owners who were using the property residentially or renting to long-term tenants may now pivot to short-term rentals to justify the higher tax bill. Those tenants could be displaced.

And from a market economics perspective, here’s the kicker: supply of Tourist Homes is now capped. Aside from a limited number in already-approved ASPs like Three Sisters, we won’t see new Tourist Homes in the future. But demand for them isn’t going anywhere. That scarcity will only drive their value higher over time — further incentivizing owners to hold onto the designation, not give it up.

I appreciate that the Town wants more transparency and planning clarity. And yes, for the small number of owners who truly just want to live in the unit and never rent it, this might feel like an easy win. But from where I stand? It feels like a well-intentioned move that could backfire — and actually reduce available long-term housing.

In Summary

If you own a Tourist Home in Canmore, now’s the time to reassess your strategy. Talk to your accountant & a local REALTOR® who understands the nuances of our market (👋), and weigh your long-term goals carefully.

Questions? Curious what your home’s designation means for value? Happy to chat anytime.

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Springtime in Canmore: Soggy Trails, Epic Ski Days & Fresh Starts

There’s something about spring in Canmore that feels like magic. The light lingers a little longer each evening, patios start to buzz again, and the mountains show off both their snow-capped peaks and sun-drenched valleys. But if you're local—or just know where to look—you’ll also know that spring in the Bow Valley is full of contradictions.

Right now, the trails are soggy, the kind of soggy where you’re either skating across patches of ice or sinking into mud up to your ankles. It's shoulder season for hiking and mountain biking, and while some lower-elevation paths are starting to open up, most are best left to dry out a bit longer. If you’re venturing out, stick to south-facing trails like the Benchlands Ridge or the Bow River Pathway, and always be mindful of trail damage—I know you have the itch to get the bikes on some dirt but this is the time we need to exercise patience and give them a chance to dry out or we’ll be in rut city all spring!

But while the valley floor is in melt mode, resort skiing is the best it’s been all year. The spring snowstorms have delivered—big time. Sunshine, Lake Louise, Nakiska and Norquay are all enjoying a late-season boost, with soft turns, fewer crowds, and those bluebird days we all dream of. If you haven’t had your fill of winter yet, now is the time to grab your skis (and sunscreen!) and head up high.

What’s Happening Around Town

Spring also means a shift in local energy. There’s a gentle hum returning to Canmore as we swap Blundstones for Birkenstocks and reconnect with community happenings:

  • 🧘‍♀️ Yoga at the Opera House (Mondays & Wednesdays until April 16) — Cozy vibes and a midday reset in one of Canmore’s most charming historic buildings.

  • Weekly Trivia and Game Nights:

    • Sundays:

      • Tavern 1883: Sunday Night Bingo/Trivia starts at 8:30 PM. Enjoy multiple rounds of music, bingo, and trivia combined, with food and drink specials and prizes after every round. Free entry.

    • Tuesdays:

      • The Rose & Crown: Trivia Night begins at 7 PM. Free entry with drink specials available.​

    • Thursdays:

      • The Drake Pub: "Let's Get Quizzical" Trivia Night starts at 7 PM. Free entry, prizes, drink specials, and a $14.50 steak sandwich offer.Weekly Bingo Nights:

    • Fridays:

      • Canmore Legion - Three Sisters Branch #3: Friday Night Bingo starts at 7 PM. Arrive early to make sure you get a seat and enjoy food from Avi's Kitchen.

  • 🍸 Happy Hours:

    • Crazyweed (Daily from 2-5PM) — ½ price drinks and pizzas

    • Where the Buffalo Roam (Mon-Fri from 2-5PM) — 20% off bar snacks, small comforts, treats, beer & Wine.

    • Bridgette Bar (Daily from 2-5PM) — ½ price drinks and pizzas (don’t forget to add on the chili infused honey for your pizza)

    • The Stirling (Daily from 12–5PM) — 25% off the drink menu and great bites to match.

    • Sheepdog (Mon-Fri from 2-5PM) — 32oz mini pitchers, varied prices but good value for volume (Bring your dog!)

    • Canmore Brewing Co. (Mon/Wed/Thu: 7-9PM. Fri: 4-7PM. Sun 6-8PM) — $6 Pints (Be sure to check out the live music on Fridays until the end of April at Community Fridays!

  • Running Groups:

    • Dirtbag Runners Bow Valley

      Founded in 2015 by local trail and ultrarunner Andy Reed, this group offers structured one-hour interval sessions suitable for all abilities. They meet year-round, regardless of weather conditions, and often gather for post-run socializing in downtown Canmore.

    • Canmore Trail Culture

      Dedicated to promoting trail running in the Bow Valley, this inclusive group welcomes runners of all abilities, emphasizing fun and adventure. They typically meet on Tuesday evenings throughout the year and on Saturday mornings during the summer.

And soon…
🌻 The Canmore Mountain Market returns May 22 at Elevation Place and runs every Thursday through early October. Local produce, handmade crafts, baked goods, and that sweet small-town energy we all love.

Oh, I almost forgot… Your Bike Called—It’s Time for a Spring Tune-Up

  • Outside Bike: Offers comprehensive bike repair services, including 200-hour fork and shock servicing, pivot overhauls, and custom bike builds. Their technicians have over 15 years of experience.

  • Rebound Cycle: Provides year-round bike services, including full-service repairs, custom builds, and bike fitting. They also offer bike rentals and coaching/instruction services.

  • Bow Valley Bike Guy: A mobile bike repair shop serving the Bow Valley area, offering services such as geared and non-geared bike tune-ups, tire services, and suspension refreshes.

  • Sports Garage: Provides a range of services including bike tuning and repairs, ski and snowboard tuning, and skate sharpening. They also offer e-bike rentals and sales.

  • Bike Therapy: Specializes in suspension services for bikes, offering expert tuning and maintenance to enhance performance. 

Real Estate Snapshot

In the real estate world, spring often brings renewed activity. Whether you're thinking of buying your first home, upgrading, or just want to know what your home might be worth after the long winter, this is a great time to check in. Despite soggy trails, the market is far from sleepy—and in some segments, demand is heating up just as fast as the April sun.

Final Thoughts

Spring in Canmore is messy, magical, and completely unique. It’s the season of rubber boots and ski passes, of après patios and mud-splattered dogs. It’s when locals know to pack for all four seasons in one day—and love the adventure that comes with it.

If you're looking for a home (or a lifestyle) that embraces all the wild transitions of mountain living, I’d love to help.

— Kristen

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.