Province likely to ease short-term rental restrictions in Kelowna soon

The B.C. government has often touted its short-term rental crackdown as a force for lower housing costs. Now, it's planning to relax the rules in Kelowna.

Kelowna may be called the Orchard City, but these days it’s better known for its lake views, vineyards and golf.

It’s a true summer playground in the Okanagan—for those who can find a place to stay.

“We’ve been hearing from our business community and others in the community that feel the short-term rental restrictions have had a negative impact on our tourism numbers and visitors to the area,” George Greenwood, CEO of the Kelowna Chamber of Commerce told CTV News.

To increase rental stock for locals, the province implemented short-term rental regulations in 2024, reducing the number of listings available on sites like Airbnb and Vrbo.

A municipality must have a vacancy rate above three per cent for two consecutive years to be eligible to apply for an exemption.

The latest data from the Canada Mortgage and Housing Corporation shows Kelowna’s vacancy rate hovering just below seven per cent.

The city would like to see the restrictions eased.

“They’ve been very thoughtful about not wanting to repeal all of the work but take a more nuanced approach,” said Housing and Municipal Affairs Minister Christine Boyle.

“I really appreciate the leadership that mayor and council there have shown and look forward to saying more soon.”

Through his office, Kelowna Mayor Tom Dyas declined an interview request until there is something concrete to announce on the issue.

On a visit to the Okanagan last week, Premier David Eby made it clear that could happen very soon.

“The timeline we had was for November. We recognize that’s not helpful for the summer tourist season,” he said at an unrelated news conference on Wednesday.

Dale Holmes runs a company that manages short-term rentals on behalf of owners.

Many of his clients own units in buildings near Kelowna’s downtown core that were built to accommodate tourists.

He hopes the changes will apply specifically to those properties.

“They allowed for these to be built under the premise that they could be a short-term rental. They were sold as that. They were marketed as that,” Holmes said. “And so, we’ve had owners purchase with that in mind.”

With the Memorial Cup, a pair of B.C. Lions regular season games and the B.C. Summer Games all happening in Kelowna this spring and summer, short-term rental hosts and potential visitors are anxiously waiting for details on the scope of the changes.