Is a 3 bedroom Canmore Airbnb a good investment? This is a question I hear from clients so frequently, I figured it was time to break it down in a quick article.
The short answer: Yes. But – like anything worthwhile – its not that easy.
The answer really depends on a number of factors: what properties are on the market, your budget, and the overall shape of the marketplace for short-term rental zoned properties in Canmore.
In this article, let’s explore:
I’ll try to keep this article concise as I can tend to ramble. But – as always – if you have questions about our marketplace, short-term rental zoning, or any listings you’re seeing at all, feel free to reach out to me directly via text, email or call. No question is too small and I’m happy to help!
Canmore is a very small town; we only have about ~5500 dwellings. But its important to note that our short-term rental zoned supply is distinctly separate than our residential properties. Airbnbs / STRs are only allowed in specific buildings and areas, typically clustered around the town centre. The vast majority of these properties are resort-style condos that were created specifically to be visitor accommodation – not housing. This is a key distinction from other markets and cities.
As of this writing, there are 2,710 active short-term rentals in Canmore and the surrounding area:
As you can see, over 76% of the rentals above fall into mainly 1 & 2 bedroom categories.
Looking at the numbers above, there should be plenty of 3 & 4 bedroom properties to choose from, no?
Unfortunately, even though it seems like there are a lot above, these properties rarely change hands. Part of this is because of their desirability; for some folks, only 3 bedrooms will fit their family and the property is mainly for personal use. For others, it comes down purely to revenue performance. Some 3 bedroom properties can perform twice as well as many 2 bedroom units. 4 bedroom properties (especially with a rare private hot tub) are the very peak of performance.
If we look back at the market data, in the full year 2024, for 3 bedroom short-term rental zoned properties, we only saw 8 properties sell publicly on the open market. Of these 8, half were priced above $1.5M.
In our local database, for 4 bedroom nightly rental properties, in 2024 only one changed hands on the open market. And I’m proud to have represented the lucky Buyer who acquired that stunning property!
Herein lies the problem with 3+ bedroom Airbnb properties in Canmore. Strong performance, highly sought after, desirable… and tough to get your hands on. Buyers with their hearts set on a 3 bedroom may encounter multiple offers and aggressive pricing – not always the most fun.
For most clients, a 1 or 2 bedroom property will be the perfect investment. They also perform very well; after all, for most travellers, that’s all the space they need. Larger groups could always book additional units. I have several families who have started with a 2 bedroom property, and then purchased another 1 or 2 bedroom property nearby. This way they can accommodate their own larger family while still growing the amount of revenue generated.
Regardless of the number of bedrooms, I always coach clients to focus on the enduring features that will make your property stand out. Great views, a generous floorplan, and on-point decor will always make a property shine.
If you’re looking for an investment property in Canmore, feel free to reach out to me directly. I’m happy to answer any questions you have, create a specialized search based on our local zoning rules, and have a strong track record of helping investors and their families get exactly the properties they want.
Cheers!