The City of Whitehorse is preparing to adopt a major update to its zoning framework through the proposed Zoning Bylaw 2025-37, replacing the current Zoning Bylaw 2012-20. Among its most significant additions are detailed regulations for short-term rentals (STRs), which were previously unaddressed in local zoning. These new rules are set to reshape how homeowners, tenants, and investors can operate STRs across the city, while balancing tourism opportunities with the ongoing pressure on local housing supply.Why the City Is Regulating STRs NowUntil now, Whitehorse’s zoning bylaw contained no specific rules for short-term rentals in either residential or commercial zones. The absence of clear standards created uncertainty for operators and enforcement challenges for the City, especially as online platforms like Airbnb and Vrbo became common tools for income generation.Public feedback collected through Engage Whitehorse from 2023 to 2025 showed strong interest in defining fair, transparent parameters for STRs. Many residents supported allowing small-scale rentals, provided they did not displace long-term tenants or alter neighbourhood character. Others raised concerns about housing affordability, noise, parking, and enforcement. The new bylaw responds to those issues by formally categorizing STRs as a regulated use, setting clear limits on where and how they can operate, and linking them to licensing and safety verification requirements.Key Provisions in the Proposed BylawUnder the proposed Zoning Bylaw 2025-37, all short-term rentals will be subject to a new, city-wide regulatory framework. The rules differ by zone and by whether the STR is operated as part of a primary residence or as a commercial enterprise.Residential ZonesIn residential areas, STRs would become a conditional and restricted use, permitted only under specific conditions designed to preserve housing availability for permanent residents.Primary Residence RequirementThe operator must live on the same property. This ensures that short-term rentals remain secondary to a full-time dwelling and are not used as full-time investment properties.Operational Time LimitHomeowners can rent their primary residence for a maximum of six months per year, typically when they are away. This mirrors approaches used in several other Canadian cities seeking to prevent the conversion of homes into de facto hotels.Suites and Accessory UnitsA living suite or garden suite may be rented out on a full-time basis, provided that the owner or operator continues to occupy the main dwelling.Numerical LimitsOnly one STR per person and one STR per lot will be permitted, closing the door on multiple listings operated by a single owner within the same residential property.Permitting and safety requirements: Every STR will need to obtain a business license, a development permit, and a building safety verification, formalizing oversight and safety compliance that was previously absent.This framework effectively treats STRs as a supplemental income activity for homeowners rather than a stand-alone business model within residential neighbourhoods.Commercial ZonesThe proposed bylaw also addresses STRs in commercial districts, where tourism activity and higher density development are already encouraged.Operators may run an STR in their primary residence for up to six months per year while away. Alternatively, they may operate full-time short-term rentals, sometimes referred to as commercial STRs, with no limit on the number of units per operator or per lot.This distinction between residential and commercial areas allows the City to accommodate hospitality uses where appropriate, while preventing widespread displacement of long-term housing in lower-density neighbourhoods.Balancing Tourism and HousingThe introduction of zoning regulations for short-term rentals is part of Whitehorse’s broader effort to align its land-use policies with the goals outlined in the Official Community Plan (OCP). The OCP emphasizes sustainable growth, protection of housing stock, and the creation of mixed-use areas that support both residents and visitors.The City’s approach to STRs reflects this balance. By restricting non-owner-occupied STRs in residential areas but permitting them freely in commercial zones, the bylaw aims to maintain neighbourhood stability while still capturing the economic benefits of tourism. It also helps clarify expectations for operators and nearby residents, reducing the number of disputes and enforcement challenges that arise when short-term rentals operate informally.Rental Vacancy RateThe rental vacancy rate in Whitehorse has consistently hovered at critically low levels in recent years, and city planners have identified the expansion of short-term rentals as one factor that can exacerbate the shortage. By ensuring STRs function as part of an owner-occupied property, the City hopes to prevent the loss of long-term rental units to the vacation market.Implementation and EnforcementIf adopted, the new bylaw will require existing short-term rental operators to comply with the updated zoning rules. Because the previous bylaw did not explicitly permit STRs, there will be no grandfathering for current operators. Those wishing to continue hosting will need to apply for the necessary permits and licenses under the new system.The City has signalled that compliance will be supported by a combination of business licensing, zoning enforcement, and safety inspections. This structure brings STRs under the same level of accountability as other regulated land uses.Formalizing a Growing SectorWhitehorse’s decision to formally regulate STRs represents a shift from reactive enforcement toward proactive management. If the proposed Zoning Bylaw 2025-37 is adopted as drafted, STR hosts will face new responsibilities and fewer opportunities to run multiple properties as full-time vacation rentals. At the same time, legitimate operators will gain greater certainty and the ability to operate openly under clear, standardized rules.As the bylaw moves toward Council consideration later in 2025, both homeowners and prospective operators will need to review how the new framework affects their properties.