How does Calgary keep market housing affordable and in supply?
Article content
Calgary's market housing is at the tipping point of affordability. But does home ownership have to slip out of reach or can the situation be reversed?
Article content
Building Industry and Land Development Calgary Region brought together independent industry experts for a summit, Unlocking Doors: Housing Supply and Affordability Summit, earlier this month to discuss ways to prevent market housing from escaping the reach of would-be homebuyers.
Article content
Article content
'We're the second most affordable metropolitan area in Canada. That is great, but that will also draw people here, so we have to redouble our efforts,' says Brian Hahn, CEO of BILD Calgary Region.
Article content
Article content
Canada Mortgage and Housing Corp. describes housing as affordable when a household spends less than 30 per cent of its pre-tax income to cover mortgage, property tax and utilities. That number has hovered above 40 per cent in the Calgary area for the past three years, show RBC's Thought Leadership Series on Canadian Housing quarterly reports. By comparison, the latest report shows the average across Canada was 58.4 per cent in the fourth quarter of 2024. Vancouver reflected the most unaffordable metropolis at 92.8 per cent, while Toronto was at 70.8 per cent. Edmonton came in as the most affordable of the group at 33.6 per cent.
Article content
Article content
While the solution to tight demand and high prices might be simple in theory — build more homes — the reality of increasing market housing and affordability involves many moving parts.
Article content
'The biggest challenges are the time from dirt to door, and cost. Every bit you can shorten up on time helps on the cost side, and everything you can do on the cost side helps,' Hahn said.
Article content
SHORT ON HOUSING
Article content
According to CMHC, Alberta needs 130,000 more housing units by 2030 to meet demand created by so much in-migration in the past few years.
Article content
There's an argument to be made that Alberta's builders and developers are up to the challenge. The province marked record building starts topping 46,000 in 2024. However, it's not quite that simple, points out Hahn. Top of mind is the aging skilled labour force.
Article content
'We need to make sure that people are entering the fields that are the skill sets that support land development and housing,' Hahn said. 'Trades are one, and we're grateful for what the province and the federal government has done in terms of supporting that. But also we would like to see focused programs in terms of immigration and making sure that amongst those who come to Canada are those who have experience in construction, and home construction, in particular.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
2 days ago
- Winnipeg Free Press
Manitoba ‘particularly vulnerable' to tariff-fuelled core building materials price hikes: CMHC
Due to a reliance on imports, tariffs on core building materials could hit Manitoba harder than other provinces. A Canada Mortgage and Housing Corp. report in February flagged Manitoba and Saskatchewan as facing the highest potential cost increases because of a 'heavy' reliance on imported U.S. steel, aluminum and concrete. The market insights report was assembled as Canadians braced for sweeping 25 per cent tariffs. It was shared with the Free Press recently via a freedom of information request. MIKE DEAL / FREE PRESS FILES A Winnipeg Construction Association memo notes a 10.7 per cent drop in permit numbers during the first three months of 2025. At the time, the CMHC projected Manitoba could see a 3.7 per cent price increase on core building materials: steel, aluminum, concrete and softwood. 'Regions like Manitoba and Saskatchewan are particularly vulnerable due to limited local production capacity,' the report reads. Four months later, blanket 25 per cent tariffs haven't appeared. However, a levy applies to all steel and aluminum imports to the U.S.; Canada reciprocated with a swath of 25 per cent tariffs on inbound steel and aluminum. U.S. President Donald Trump doubled his tariff on the two core building materials Wednesday. 'This report certainly shows that the construction industry in Manitoba has exposure to the evolving tariff situation,' said Darryl Harrison, Winnipeg Construction Association director of stakeholder engagement. Industry members have been altering their supply chains to minimize costs. It includes sourcing more Canadian steel and ensuring contracts don't specify American products, Harrison said. Manitoba imported $32.9 million worth of U.S. iron and steel more than it exported in 2023, per Statistics Canada data. It saw a similar deficit — but $51.9 million — for aluminum. Despite the economic uncertainty, Manitoba contractors have more bidding opportunities now than a year ago, Harrison said. The Winnipeg Construction Association has an online tender platform. The projects awarded during the first three months of 2025, however, was a noticeable drop from the same period in 2024. 'The tariffs certainly would have an impact,' Harrison said. U.S. levies — and Canada's reciprocal fees — came online in March, after months of threats and uncertainty. A Winnipeg Construction Association memo notes a 10.7 per cent drop in permit numbers during the first three months of 2025. Then, $988 million worth of permits were awarded; the number was $1.1 billion a year earlier. Institutional permit numbers plunged 53 per cent; industrial followed with a 36 per cent decline. Commercial and residential permits bucked the trend with year-over-year increases. 'My feeling is that people are more comfortable (now) in trying to find ways to manage the uncertainty of tariffs,' Harrison said. But the recent doubling of American steel and aluminum import tariffs — and possible reactive tariffs from Canada — could have an impact, he added. Supply-Build Canada hasn't clocked big differentials in tariff exposure across the country, said president Liz Kovach. Some U.S. suppliers have eaten tariff costs. 'I don't know how long they're going to be able to do that,' Kovach said. '(And) now that the tariffs have doubled, it's going to take a little while to see what that impact will be on the industry.' Monday Mornings The latest local business news and a lookahead to the coming week. Canadian construction firms also face a headwind from an ongoing softwood lumber dispute with the U.S., Kovach added. She's bracing for a doubling of duties on such exports this year. Manitoba exported more softwood to the U.S. than it imported in 2023, at a net export of $244 million. Freight costs — and the distance required to get material — seems to be a large factor in price fluctuations, Kovach said. The CMHC hasn't analyzed whether core building material prices have increased since February, but stakeholders say rising prices are affecting construction, spokesman Leonard Catling wrote in a statement. 'We continue to closely monitor housing market activity.' Gabrielle PichéReporter Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle. Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Global News
3 days ago
- Global News
Calgary may speed up building new neighbourhoods if it doesn't require upfront costs
A city committee endorsed a move to fast-track approvals for new communities on Calgary's outskirts, but only if they don't require capital investments from the city. Currently, developers submit applications throughout the year to build new subdivisions, but a final decision from city council only comes once a year, during budget deliberations in November. According to city administration, this is because applications are reviewed to determine the capital costs required to enable construction, which could include roads, utilities and water, as well as emergency services like fire stations. However, city administration says some of the applications for new neighbourhoods only require operating investments for the city services and not new capital costs, as they leverage previously installed infrastructure. On Wednesday, the city's Infrastructure and Planning committee unanimously endorsed a proposal that would speed up approvals for new subdivisions, provided they only require operating costs. Story continues below advertisement 'We talk about removing red tape, and this is an opportunity to remove red tape,' said Ward 1 Coun. Sonya Sharp, who chairs the committee. As part of the proposal, administration is also recommending city council approve six new subdivisions. View image in full screen The six new subdivisions the City of Calgary is recommending get fast-tracked as they only require operating funding. Courtesy: City of Calgary Operating costs, which are supported by property taxes, for the neighbourhoods are $140,000 per year to expand Calgary Transit service to the areas. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy But the city's report on the proposal warns council's approval of a new community commits the city to future long-term operating and capital investments 'as a community develops and services are provided to future residents.' Story continues below advertisement City administration estimates at full buildout, the six new subdivisions will require $3 million in tax-supported funding annually for city services. The communities will also eventually require $609 million of capital investment, with $189 million supported by taxes, $109 million coming from off-site levies and development fees, and $311 million coming from utilities to be repaid by user fees. 'When you look at full buildout you have to look at the return on investment and how much those houses and that area will bring money back into the city as revenue generation,' Sharp said when asked about the potential future costs. The move is getting support from the development industry with representatives from BILD Calgary Region noting the current process can create delays. 'It better aligns approvals with infrastructure readiness, reduces uncertainty for investors, and supports a more responsive approach to Calgary's growing housing needs,' Deborah Cooper with BILD Calgary told committee. 'That small shift helps manage costs and risk more effectively and supports a more reliable housing supply.' However, it follows a slew of spending commitments from city council outside of budget talks, including $20 million in surplus Enmax dividends for city facility upgrades, and $15 million to retrofit Calgary Transit buses with improved shields to protect operators. 'There are times that you have to look at making decisions that are outside of the budget cycle in the best interest of the people you serve,' Mayor Jyoti Gondek said. Story continues below advertisement 'When we are trying to deliver on housing, sometimes those ideas need to come forward ahead of a budget cycle.' The six new communities as well as proposed change to the approvals process will now go to city council as a whole for a final decision later this month.
Edmonton Journal
26-05-2025
- Edmonton Journal
How does Calgary keep market housing affordable and in supply?
Article content Calgary's market housing is at the tipping point of affordability. But does home ownership have to slip out of reach or can the situation be reversed? Building Industry and Land Development Calgary Region brought together independent industry experts for a summit, Unlocking Doors: Housing Supply and Affordability Summit, earlier this month to discuss ways to prevent market housing from escaping the reach of would-be homebuyers.
