After plenty of anticipation, short term rental restrictions may finally be changing in Kelowna. The question has recently shifted in a hopeful direction – from a matter of ‘if’ to a matter of ‘when’ – giving us plenty to keep our eyes on in the coming weeks and months.

Since short term rental restrictions went into effect in May 2024 we’ve seen many potential side effects in our community, one of which being Kelowna’s accelerated vacancy rate. By the end of 2025, Kelowna had the highest vacancy rate in Canada at just under 7% – a significant increase from the 3.8% we saw in 2024. Locals and industry experts alike speculate this is largely due to the change in short term rental policies, as we saw a spike in vacation- and rental-intended properties completed around the same time.

Thankfully, the BC government has made it clear that eligibility for short term rental exemptions would come into effect in Kelowna by November 1st due to our vacancy rates being over 3% for two consecutive years. But with so many tourism opportunities on the horizon like the Memorial Cup, BC Lions games, and the BC Summer Games to name a few, the City of Kelowna started pushing for an earlier exemption date as soon as we started 2026. 

In anticipation of an earlier exemption date, the Kelowna City Council has already started the process of creating a new Short Term Rental (or STR) sub-zone. This new STR zoning would apply to 16 properties and open up nearly 2,200 units for eligibility, of which over 700 had already been granted principal use licenses (allowing for short term rentals without being the owner’s primary residence). While the planning is clearly underway, the decision will still ultimately come down to the province signing off on Kelowna’s exemption from the BC Short Term Rental Accommodations act.

Despite no announcement being made yet, discussions are active and ongoing at local and provincial levels to move this exemption forward, so stay tuned for updates! As new information becomes available, I’ll be sure to let you know right away.