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.

Downhill Skiing Delights:

Are you ready to carve your way through some of the most breathtaking slopes in the world? Look no further than the Bow Valley, home to premier downhill skiing destinations like Nakiska, Norquay, Sunshine, and Lake Louise.

• Nakiska Ski Area: Host to the 1988 Winter Olympics, Nakiska offers 79 runs for all skill levels and a tube park, set against the stunning backdrop of Kananaskis Country.

• Mount Norquay: Located near Banff, Mount Norquay boasts challenging terrain across four mountain faces, along with panoramic views of Banff National Park.  Norquay offers tubing for those not looking to hit the slopes but want a quick adrenaline hit and night skiing on weekends.

• Sunshine Village: With abundant snowfall and vast terrain, Sunshine Village promises unforgettable powder days and thrilling chutes.  Sunshine also offers some great ‘slack-country’ skiing so if you have Avalanche training & equipment, bring your skins & beacon to head out of bounds when safe to do so.

• Lake Louise Ski Resort: Nestled in Banff National Park, Lake Louise features diverse terrain across 4,200 acres, making it a favorite among skiers and snowboarders alike.

Cross-Country Skiing Serenity:

While the Bow Valley is renowned for its downhill skiing, it also offers a haven for cross-country skiing enthusiasts, with the crown jewel being the Canmore Nordic Centre.

• Canmore Nordic Centre: Situated just minutes from downtown Canmore, the Canmore Nordic Centre is a world-class facility that hosted the Nordic events during the 1988 Winter Olympics. Boasting over 65 kilometers of meticulously groomed trails, the Centre caters to skiers of all abilities, from beginners to elite athletes. With its stunning mountain backdrop and variety of terrain, the Canmore Nordic Centre provides a picturesque setting for a day of cross-country skiing.

• Banff National Park: For those seeking a wilderness experience, Banff National Park offers an extensive network of track-set trails that wind through pristine forests and meadows. From easy loops to challenging routes, there's something for everyone to enjoy amidst the breathtaking scenery of the Canadian Rockies.

• Peter Lougheed Provincial Park (PLPP): Venture into the heart of Kananaskis Country and discover the beauty of Peter Lougheed Provincial Park. With well-maintained trails that traverse a diverse landscape of forests, lakes, and alpine meadows, this park offers an ideal setting for cross-country skiing adventures.

• Mount Shark: Located south of Canmore, Mount Shark is a hidden gem for cross-country skiers. With its remote location and stunning mountain vistas, Mount Shark provides a peaceful escape from the crowds, allowing you to immerse yourself in the beauty of the backcountry while exploring its groomed trails.

Whether you're gliding through the manicured tracks of the Canmore Nordic Centre or exploring the pristine wilderness of Banff National Park and beyond, cross-country skiing in the Bow Valley offers a serene and rejuvenating experience amidst some of the most spectacular scenery in the world. Nordic Pulse is a great resource to see current grooming and trail conditions.

Backcountry Bliss (with Caution):

For those seeking a more adventurous skiing experience, the Bow Valley and Canadian Rockies offer unparalleled opportunities for backcountry ski touring and splitboarding. However, it's essential to remember that venturing into the backcountry requires advanced skiing abilities and a thorough understanding of avalanche safety.

Before embarking on any backcountry adventure, be sure to familiarize yourself with avalanche awareness and practiced rescue knowledge, proper equipment, and always check the Avalanche Forecast & Weather Conditions before heading out. With the right skills and precautions, backcountry skiing in the Bow Valley can be an exhilarating and rewarding experience, allowing you to explore untouched powder and breathtaking landscapes far from the crowds.  AST1 is a must and AST2 is recommended, click here for current course offerings.

Whether you're drawn to the adrenaline rush of downhill skiing, the serenity of cross-country skiing, or the thrill of backcountry exploration, the Bow Valley offers something for every winter enthusiast. So grab your skis or snowboard, and get ready to discover the winter wonderland that awaits in this spectacular corner of the Canadian Rockies.

Please note for Nakiska, the Canmore Nordic Center, PLPP & Mount Shark, a Kananaskis Conservation Pass is required to park your car at any of these locations.  For Norquay, Sunshine, Lake Louise and any cross-country trailheads in Banff National Park (including the Town of Banff & Lake Louise Village & Lake), a Discovery Pass is required to park in any of these locations.  Passes for both Kananaskis and the National Parks can be purchased ahead of time or on the way to your location.  At the time of publishing this blog post, a daily family National Park pass is $22 or annual is $151.25 so if you are going to go into any of the National Parks (Banff, Kootenay, Yoho, etc.) more than 7 days in a 12 month period, it’s best to buy the annual pass and the Kananaskis Pass is $15 for the day or $95 for the year so again, you only need to go 6 days in a 12 month period to make it worthwhile just to buy the annual pass.  If you are visiting both areas, you need both passes - the Kananaskis Conservation pass and the National Discovery Pass are independent of each other - which is especially fun if you’re hiking to Assiniboine via Sunshine to Mount Shark and you car drop at both locations.. and have to have both park passes.