Calgary’s housing market is facing a growing affordability crisis, with homeownership increasingly out of reach for many potential buyers. While Calgary remains one of the more affordable major cities in Canada, its residential real estate market has surpassed the threshold of what is considered affordable. According to the Canada Mortgage and Housing Corporation (CMHC), housing is considered affordable when a household spends less than 30% of its pre-tax income on mortgage, property tax, and utilities. In Calgary, this number has been above 40% for the past three years, signaling a shift away from affordability.

To address this, industry experts gathered at a summit to explore solutions for keeping housing within reach for residents. A central point of discussion was the need to increase the housing supply. However, the challenges are more complex than simply building more homes. The primary issues involve the long timelines and high costs associated with land development. Shortening construction times and reducing costs are key factors in making homes more affordable.

One of the main drivers of Calgary’s affordability crisis is the shortage of available land and the rising costs of development. Land prices in Calgary, while lower than those in cities like Vancouver and Toronto, still put pressure on affordability. Experts agree that urban expansion, the densification of older neighborhoods, and a more competitive land market are necessary to address the affordability issue.

Additionally, there is a shortage of skilled labor in Alberta’s construction industry, partly due to an aging workforce. Solutions such as targeted immigration policies and specialized training programs are seen as essential for meeting housing demand. Further complicating the issue is the need for significant investments in infrastructure like water systems, transit, and power to support new housing projects.

To mitigate the impact of rising development costs, there is a push for new funding models, including grants to developers to help offset infrastructure costs. This would reduce the financial burden on taxpayers and speed up the development process.

Addressing Calgary’s housing affordability crisis will require a multifaceted approach, combining urban expansion, more efficient building practices, and targeted financial support for developers. Without these efforts, homeownership may continue to move further out of reach for many residents.