Lake of Bays monitors short-term rentals amid housing pressures

Photograph: Andy Zeltkalns

The growth of short-term rentals in Lake of Bays is raising concerns about the availability of long-term housing in the township. With 285 listings and 223 licensed, short-term rentals are becoming an increasingly visible part of the local real estate landscape.

Municipal staff reported that 14 administrative monetary penalties were issued in the last quarter of 2025, a period when bylaw enforcement is typically quieter. Some duplicate listings remain in the system, and quarterly enforcement will continue to ensure compliance.

Council discussion highlighted potential impacts on housing, noting that nearby communities such as Huntsville and Bracebridge have implemented caps on short-term rentals due to shortages of long-term units. Lake of Bays is beginning to see similar trends.

New residential developments intended for permanent housing are increasingly being converted to short-term rentals, with some properties showing up to 85 per cent of units dedicated to STRs. This shift has prompted discussion about whether limits on STRs may be necessary in the future.

At present, council received the fourth-quarter STR report but did not direct staff to take new action. Monitoring and enforcement will continue to ensure compliance, with potential policy decisions to be considered as STR numbers grow and housing pressures intensify.