There's been a lot of buzz in the real estate industry of Calgary city council's proposal to blanket rezone the majority of the city.

What does rezoning mean? It means that the land-use 'rule' for a particular parcel of land will be changed. This will dramatically change the landscape of how the city evolves overtime. 

For instance, a property with R-C1 zoning means that traditionally, only one dwelling unit is allowed on the parcel of land. Rezoning this to a different code, will allow a different use on the same piece of land. Due to the influx of migration and resulting housing crunch, the goal of rezoning is to densify certain communities.

This is only a proposal for now, until council votes on this April 22, 2024 – public input will be reviewed on March 7, 2024 (implementation likely June 2024). 

Proposed Rezoning

• R-CG in Established Communities: primarily for the development of townhomes, but also allows for single detached, semi-detached that may include a secondary suite

• R-G in Newer Communities: allows for a mix of low-density housing (including detached, semi-detached, duplex, cottage housing clusters and townhomes, all which can include a secondary suite)

• H-GO in Newer Communities: which allows for higher intensity redevelopment than that of R-CG, but still maintaining direct ground-level access to all homes (no apartments)

These changes make it easier to build various types of housing in the communities and to reduce permit costs timelines. The changes do not prevent certain development, but rather increase the types of housing available to be built.

How does this affect housing in Calgary?

• Short-Term: In the short run, it's likely that prices will run up given the numerous options available for redevelopment. Think of it this way: previously a developer could only build one single detached home in an area with a certain profit margin. After rezoning, they can now consider an array of options to increase that profit margin by building higher density homes. Increasing competition for those specific desirable lots. 

• Long-Term: In the long run, prices should levelize with an abundant array of housing options for consumers; that is, if it can satisfy the demand. Remember, building homes take time (on average 9–12 months for a detached home), even longer for larger complexes (townhouse complex, apartments, etc.).

Timeline

• January 2024: Information sharing with citizens and interest groups

• February 2024: In person and online information sessions

• March 2024: Notification to impacted landowners

• March 7, 2024: Proposed rezoning presented to Calgary Planning Commission and Recommendation to Council

• April 22, 2024: Public Hearing meeting of Council

Resources

City of Calgary Rezoning Proposal HERE

Proposed Rezoning Map HERE

News Coverage HERE

Well, that wraps it up for 2023! Wishing you a wonderful and blessed New Year, filled with health, happiness, and prosperity in 2024!

Thank you to all my clients this past year, I wouldn't be here without your support and trust.

Lets take a look at the performance of the Calgary real estate market over the last year (helpful to look at annual performance for an idea of the longer term trend).

Key fact: The average price for a home in Calgary has appreciated by at >8% since last year (which considers properties across all ages and conditions) and we're a squeeze into lower priced product such as condos and townhomes due to affordability.

More details in CREB's official released figures this week:

Looking ahead, we wonder what could be in store for 2024? There's no crystal ball, but here are the fundamental facts:

• Steepest Canadian Immigration Growth of NPR: Canadian immigration of non-permanent residences surpassed half a million in 2023, part of the steepest single-year rise in at least 50 years – Statistics Canada

• Record Inter-Provincial Migration to Alberta: Alberta saw inter-provincial migration of 45,194 individuals between Q1-Q3 2023 (+103% change from 2022) – Province of Alberta

• Continued Labour Shortage to Build Homes: By 2032, an estimated hiring requirement will exceed 299,000 of construction / trade labour, with nearly 245,000 of planned retirements – BuildForce Canada

• Potential Rate Cut in 2024: Economists are expecting BoC rate cuts in 2024 as a result of a slowing Canadian economy, to help stimulate growth again –  TD Financial

• High Absorption in Calgary: It's clear that the Calgary market continues to demonstrate HIGH demand - the absorption rate (Sales-to-New-Listings Ratio above), remains at or close to 100% across all property types which means for every new listing, there is a sale, with no build up of inventory – CREB

Those are the facts, and these components are likely to drive an insane spring market, depending on what the inventory looks like. These factors are likely to also drive home prices up further, if indeed the BoC eventually cuts interest rates – this will supercharge the Calgary market. 

My advice: if you're thinking about getting into the market, best to ACT NOW. Get the team you need to advise you appropriately (realtor, mortgage broker, lawyer, etc.) to ensure you have a smooth process and the best advice ahead of the craziness.

Have a wonderful start to the year, and lets help you achieve you home ownership goals this year!