In May 2024, Calgary’s City Council passed blanket rezoning changes aimed at increasing housing density and flexibility across the city. This move allows for the construction of duplexes, triplexes, and fourplexes in areas previously restricted to single-family homes. With the city grappling with housing affordability challenges and a growing population, this policy shift was aimed at increasing the housing supply while preventing urban sprawl.
Jesse Davies of Century 21, a top Calgary realtor and an experienced Calgary investment realtor, has seen first-hand how the new zoning rules have sparked considerable debate. He indicates that “Homeowners are concerned about potential changes to their neighbourhood’s character and property values, while investors are debating whether this will lead to opportunities or greater risks.”
What Has Changed?
Under the previous zoning framework, large portions of Calgary were zoned exclusively for single-family homes, limiting the density of housing in these areas. The new zoning law effectively removes these restrictions by applying blanket zoning, which allows multi-family housing to be built in most residential zones. This policy shift follows a trend in Canadian urban planning aimed at increasing density in larger cities like Vancouver and Toronto, which face similar challenges related to housing shortages and affordability.
According to the city, the new policy will make it easier to build affordable housing in established communities, reduce the cost of housing over time by increasing supply, and allow for more diverse housing options to meet the needs of different demographics. The Calgary rezoning aims to enable single-family property owners to explore low-density housing options without having to apply for a land-use redesignation. While apartment buildings won’t be allowed on parcels designated for single-detached homes, rezoning will streamline redevelopment by reducing the need for case-by-case rezoning, which can take months.
From a practical standpoint, this means that developers can bypass many of the bureaucratic hurdles that previously made it difficult to build anything other than single-family homes in certain neighbourhoods. For residents, it raises concerns that the appearance of their neighbourhoods may shift, with more multi-family homes being built alongside traditional single-family residences. For investors, the resulting new opportunities, risks, and rewards as the Calgary real estate landscape shifts as a result of this change are a top concern.
Purpose of the Change
Calgary’s Housing Strategy aims to rezone residential areas across the city, making it easier to build a wider variety of housing. This will give property owners more options beyond single or semi-detached homes, though some communities, particularly newer ones, may not see much redevelopment for 15-20 years. Factors such as land value and location will influence the likelihood of redevelopment.
What Won’t Change
Rezoning won’t affect parks or green spaces, and existing single-family homes can still be replaced with new ones. All proposed developments will still undergo review to ensure compatibility with the surrounding area. The City will continue using a development permit process to regulate building heights, lot coverage, setbacks, and other requirements.
Calgary’s Strategy for Investing in Amenities and Services as Communities Grow
A Citywide Growth Strategy is in place to guide development and investment in both new and established communities to help them remain vibrant and successful.
Property Owners’ Concerns: Neighbourhood Character and Property Values
For many property owners, particularly those in Calgary’s suburban areas, the zoning changes raised concerns about how their neighbourhoods will evolve.
Jesse Davies of Century 21, notes: “Many homeowners are worried that the introduction of multi-family units will alter the aesthetic and quiet nature of their areas, changing the character of the neighbourhood. They have expressed concerns that increased traffic, parking issues, and changes in the socio-economic composition of neighbourhoods will have an impact and potentially lower home values.”
Neighbourhood Character
Calgary has long been characterized by its suburban feel, with expansive single-family homes dominating the landscape in many communities. These neighbourhoods offer space, privacy, and a slower pace compared to denser urban centers. With blanket zoning, homeowners are apprehensive about how an influx of duplexes and triplexes will impact their quality of life.
This concern is particularly relevant for neighbourhoods that have historically prided themselves on their distinct identities. In areas like Altadore or Crescent Heights, where single-family homes dominate, the introduction of higher-density housing could lead to shifts in the demographic composition of the area. Some homeowners worry that these changes could lead to a loss of community cohesion as more transient residents, such as renters, move in.
While these concerns are understandable, research shows that carefully planned developments increasing housing density can be achieved without sacrificing the character of a neighbourhood. Additionally, replacing older, worn-down homes with attractive duplexes or multiplexes that fit the character of a neighbourhood can positively contribute to the overall appearance of the area.
Jessie Davies recommends getting the help of an experienced realtor, like the Jessie Davies team: “A skilled realtor can guide you on the realistic impacts to your existing or potential property, assessing any proposed multiplex developments onto plots that used to have a single detached home for impacts, both positive and negative. It’s important for homeowners to stay informed on potential developments in their area, and be involved in any consultation phases, seeking professional guidance on property impacts as necessary.”
Impact on Property Values
Perhaps the most significant concern for property owners is how the new zoning laws will affect property values. It’s a common assumption that increasing density by allowing duplexes and triplexes in single-family neighbourhoods could reduce the value of existing homes. The fear is that denser developments could lead to overcrowding, strain public services, and reduce the exclusivity that single-family homes traditionally offer.
However, studies provide a more nuanced picture. Research from the Lincoln Institute of Land Policy suggests there’s no noticeable difference in how property values grow between homes near higher-density developments and those that aren’t, and that higher-density development can even boost property values.
Jessie Davies stresses that “In Calgary, the impact on property values will likely vary by neighbourhood and the proposed development. Areas close to downtown or transit-oriented developments (TODs) could see property values rise as densification allows for greater housing supply in high-demand areas, and as rezoning allows for potential investment properties. Accurate property appraisals and assessments of planned changes are essential.”
Opportunities for Investors: Capitalizing on the Zoning Change
For real estate investors, Calgary’s new zoning rules offer opportunities to develop multi-family housing in new areas typically restricted to single-family homes, opening up new potential markets.
Redevelopment and Conversion
One of the most notable opportunities is the potential for redevelopment without having to deal with rezoning applications that can delay proceedings. Investors can now potentially purchase single-family homes in desirable neighbourhoods and convert them into duplexes, triplexes, or even small apartment buildings. This allows for a significant increase in rental income, as multiple tenants can be accommodated on a single plot of land.
There are also opportunities to find older, affordable properties for potentially high returns on investment. Jessie Davies suggests, “Inner-city neighbourhoods like Beltline, Mount Royal, and Kensington are prime candidates for redevelopment. These areas already have a strong demand for rental properties, and the ability to develop higher-density housing can significantly increase both rental yields and property values. The removal of previous zoning restrictions makes it easier to execute such projects without the need for lengthy rezoning applications.”
Mixed-Use and Affordable Housing Developments
A key opportunity for investors is the development of mixed-use or affordable housing projects. As Calgary’s population grows, there will be an increasing need for housing that caters to a diverse range of income levels. Developing affordable units, particularly in areas close to public transportation or commercial hubs, can offer stable long-term returns while also meeting the city’s demand for affordable housing.
The Gentrification Debate
With increased density comes the potential for gentrification, which occurs when rising property values and redevelopment displace long-standing residents. This is a common concern when urban areas experience rapid development, as lower-income residents may be pushed out of their neighbourhoods in favour of wealthier newcomers.
In Calgary, areas such as Forest Lawn and Ogden, which have traditionally been lower-income neighbourhoods, could see an influx of investment under the new zoning rules. While this may lead to rising property values and increased economic activity, it also raises concerns about affordability and social displacement.
A top Calgary realtor can guide you through the possibility of gentrification in a neighbourhood, and discuss how your properties may be affected, as well as the benefits or disadvantages of buying or selling within the area. Accurate forecasts are essential to determine these effects.
How a Top Calgary Realtor Can Guide You Through the Changes
Navigating Calgary’s new zoning landscape can be complex, especially when considering factors such as property values, redevelopment potential, and community response. Working with a knowledgeable real estate professional is crucial for both residents and investors.
A Calgary real estate professional can provide localized market insights, helping homeowners understand how the zoning changes might affect their specific property and neighbourhood. They can also guide investors toward areas with the greatest development potential, ensuring they capitalize on the opportunities created by the new zoning rules. Additionally, real estate professionals can help mitigate risks by advising on regulatory compliance, infrastructure considerations, and community engagement strategies.
Calgary’s blanket zoning policy represents a fundamental shift in how the city will develop in the coming years. While the new rules create opportunities for increased housing supply and investment, they also raise concerns about neighbourhood character, property values, and gentrification.
For property owners, understanding how these changes will affect their specific neighbourhood and property value is crucial. For investors, the opportunities to redevelop properties, invest in high-demand areas, and create mixed-use or affordable housing projects are significant. However, a balanced approach that considers both profitability and community impact is essential for long-term success. A skilled Calgary real estate professional can provide invaluable guidance for any situation, given the evolving real estate landscape due to the rezoning changes.
The award-winning Jessie Davies team is uniquely equipped to help buyers, sellers, and investors navigate Calgary’s new rezoning changes. With their deep market knowledge and proven expertise, they can guide you through the complexities of these new regulations, whether you’re looking to capitalize on development opportunities, assess potential impacts on property values, or explore investment prospects. Their experience ensures tailored advice on how these zoning changes can work in your favour, whether for expanding housing options, safeguarding property investments, or understanding community impacts.
