Calgary seeks density and development to solve housing crisis

As Calgary's housing crisis continues, the city is trying to strike a balance between increasing density in both established neighborhoods and new neighborhoods.

After councilors approved a controversial rezoning, the city committee approved four new communities that will bring more than 18,000 new homes to the city.

“We need to build homes in Calgary in a timely manner,” said Ward 1. Sonya Sharp said Wednesday. “But we have to strike a balance between inner city development and green space.”

Seven communities were nominated at Wednesday's infrastructure and planning committee meeting, but the administration only nominated four.

If approved by the council, the four communities would add 18,677 homes. That would add up to $81 million in capital costs, which must be discussed in six months when the council considers budget amendments.

As new communities are being considered, one in southeast Calgary held an official groundbreaking Thursday morning.

Located near the Seton community, Heartwood features 2,000 homes on 200 acres. The planned community should include single-family homes and high-density projects within the next five years.

“Our mixed-use site has the potential for townhouses and duplexes, which will again increase the density of the neighborhood, while also allowing for an affordable mix,” explained Luciano Salvador, executive vice president of Rohit Communities.

The need for housing diversity is something city officials and housing advocates have repeatedly raised about the proposed rezoning to try to address affordability during 16 days of public hearings.

The latest market update from the Canadian Real Estate Association (CREA) shows that Canadian home prices fell slightly in April compared to last year, but Alberta was very high.

While prices nationally fell 0.6 percent, the benchmark home value rose 9.6 percent to now stand at $577,100.

“Calgary is moving against the grain with national housing price increases,” said Mark Parsons, ATB's chief economist.

“What we're seeing is a migration story. People are coming to Alberta in droves from the rest of Canada, and that's putting additional pressure on Alberta's housing market,” he said.

Parsons said more housing is urgently needed in Calgary and Alberta as more people move into the province.

“The good news is we're starting to see an increase in home construction across the province. Multi-family initiatives have really taken off in Calgary, and that's good. But we need to build more as the construction industry struggles to keep up with growing demand,” he added.