Will wonders never cease? Calgary just finished a 15-day Public Hearing about housing and zoning. A LOT of very intelligent and passionate people spoke about needs, wants, worries, possibilities and opportunities. I’m actually really impressed: a government that took the time to listen to the people. It’s like we’re living in a democracy, or something like that! =)
Regardless of which “side” Calgarians are on, we can be grateful for Council’s best attempt to gain perspective about the broader issues of housing, land use, affordability, and a growing population. 736 Calgarians provided verbal input, and 6101 people submitted written remarks. When was the last time so many citizens got so involved? Maybe the 1988 Olympics here in Calgary?
And then council received a summary of all the presentations and comments—before they voted. It was close: nine to six in favour of changing the default zoning in Calgary. It’s not going to be a free-for-all. There will be amendments to the original bylaw proposed last fall. And there will still be some checks and balances throughout the permitting process. All of the details are still being worked out, but the bylaw is currently scheduled to come into effect August 6, 2024.
I wonder how many applications the city will receive on August 6 and 7?
I wonder if the inspectors, structural engineers and architects (just to name a few of the specialists that will be in demand) are ready for the ensuing storm?
What does this mean for real estate investors in Calgary? “In addition to single detached houses, other types of low-density housing including semi-detached, rowhouses and townhouses are now allowed in new and established areas of the city.” https://newsroom.calgary.ca/city-council-approves-citywide-rezoning-with-amendments-in-response-to-calgarys-housing-crisis/.
It is possible that a luxury Airbnb might end up beside a 6-plex. It is possible that semi-detached homes might start showing up in neighbourhoods where they had previously been blocked. And it is possible for a real estate investor with a suited home, to now add a backyard suite (for a third source of income, plus extra parking if it is above a new garage). With increased density, will property values decline, as some Calgarians fear?
The winds of change don’t usually come inside a crystal ball like our image of the week. So, no one can truly predict how this entire process will play out.
But we see the start of many opportunities that our Edmonton neighbours have already been benefitting from. Smaller investors can simply upgrade their existing properties with one or two affordable suites (basement and/or backyard). Owners of everyone’s favourite tear-down properties now have many choices, including suited duplexes. More ambitious investors can create rowhouses, to maximize their sources of income on one piece of land.
With more homes, affordability should improve (eventually) for renters. But with more choices, affordability will also improve for real estate investors. We have been challenged by interest rates and rising building costs—but investors will now need to completely re-work their numbers, and strategies.
Calgary is about to enter a “building season” unlike anything since the 1980’s. And we thought it was already construction around every corner! With record immigration into our province, we believe a greater variety of housing options will benefit many people—including our kids! We are hopeful that these new changes will be like the warm Chinook winds that Calgarians have come to love!
