Yukon’s Short-Term Rental Market: Tourism Recovery Driving Accommodation Demand Amidst Potential Impacts from Proposed Regulatory Changes

Tourism in the Yukon has recovered strongly in recent years, helping to drive demand for accommodations of all kinds. In 2024, an estimated 596,100 people visited or participated in tourism within the territory, which was the highest total ever recorded. Early 2025 figures show this trend continuing. Between January and March, there were 35,800 visitors, a 24.7% increase from the same period in 2024 and up 43.8% from 2019.

Much of this growth is reflected in air travel. Whitehorse International Airport saw over 51,000 arrivals in the first three months of 2025, continuing a strong upward trajectory that began in 2023. In contrast, land border crossings have seen a more mixed recovery. While some entry points have experienced increases, total international border crossings are still significantly below pre-pandemic levels, down 24.6% from 2019 as of February 2025.

Potential Regulatory Changes to Short-Term Rentals in Whitehorse

Of note are potential regulation changes that could impact the short-term rental market in Whitehorse. In response to rising concerns about the impact of short-term rentals (STRs) on long-term housing availability in the city, it is reviewing potential regulatory approaches. This includes examining local challenges, consulting legislation and best practices from other jurisdictions, and possibly introducing rules on where and how STRs can operate.

To gather public input, the City conducted two surveys and released the results, which, along with stakeholder feedback and external research, will inform proposed STR regulations expected in 2025.

The City has released a Draft Zoning Bylaw that outlines how land and property can be used across the city, and is seeking public input on it. In-person sessions have been held. A virtual open house and the online survey are open until June 20, 2025.

Short-Term Rentals Outpacing Hotels in Revenue Growth

Yukon’s short-term rental (STR) sector has expanded steadily over the last decade, with more listings entering the market and average prices rising, especially during peak travel seasons. From January to April 2025, the average daily rate (ADR) for short-term rentals reached $213.82, up 2.5% from the previous year and 27.4% higher than in 2019. Revenue per available room (RevPAR) followed the same pattern, up 2.5% year-over-year and 11.7% above 2019 levels.

While occupancy rates have declined slightly, down 2.8% year-over-year to 48.6%, this appears to be largely due to the increase in available listings, which grew 5.7% over the same period. In other words, the market is absorbing more supply while still maintaining strong pricing, especially in high-demand months.

By comparison, hotels saw a year-to-date occupancy rate of 48.0% (January–February 2025), with an ADR of $159.00. Though pricing is lower than in the short-term rental market, hotel ADR growth has also been slower. STRs continue to command a premium, particularly for entire-home rentals that offer more space and flexibility.

Peak Season Pricing and Revenue Trends

Summer remains the most lucrative time for short-term rental operators. In 2024, average daily rates during the summer reached $240, a 41% increase from 2019. For the same period, RevPAR rose from $125 to around $165, a 32% gain. These figures suggest that while occupancy may fluctuate, travellers are still willing to pay higher rates during peak months.

Even during the shoulder season, prices have remained strong. In April 2025, the average daily rate was $206.20—up 3.8% from the previous year, despite a year-over-year drop in occupancy from 44.3% to 39.9%. RevPAR for the month declined slightly, from $88.10 to $82.20, but remained higher than in several earlier years.

Long-Term Growth in Supply and Pricing

Over the past decade, the short-term rental market in the Yukon has grown dramatically. In April 2015, there were just ten listings, with an occupancy rate under 15%. By April 2025, there were 266 listings, for an increase of over 2,500%. During that time, the average daily rate climbed from $136.10 to $206.20, while RevPAR more than quadrupled.