The Proposed Repeal of Calgary's Blanket Rezoning: What Buyers and Sellers Need to Know

A significant development is on the horizon for Calgary's real estate landscape. A "Notice of Motion" has been filed with Calgary City Council to propose the repeal of the city's recent blanket rezoning bylaw (Bylaw 21P2024), which came into effect between August 2024 and January 2025. This proposal aims to revert land use districts to their prior low-density designations. As your local inner-city market expert, I'm here to break down what this means for you.

Key Dates:

• November 17, 2025: Technical review of motion to repeal blanket zoning

• December 15, 2025: Council debate and voting

• March 2026: Potential public hearing

• Beyond March 2026: Bylaw readings / voting

Understanding the Blanket Rezoning Context

The original blanket rezoning, part of Calgary's Housing Strategy, sought to increase housing supply and streamline development approvals. It allowed for residential development of up to three storeys and four units (plus secondary suites) on all residential parcels 50 feet wide, city-wide, subject to specific criteria. However, this policy change generated considerable public concern. During the lengthy Public Hearing process in April 2024, nearly 70% of the 736 speakers opposed the bylaw, and over 6,100 written submissions were received, highlighting widespread discontent.

Why the Push for Repeal?

Since its implementation, the Notice of Motion cites that the blanket rezoning has "failed to deliver greater housing affordability" and has generated "significant public concern" regarding:

• Loss of neighbourhood character and private tree canopy.

• Increased pressure on aging infrastructure (water, sewer, stormwater).

• Inadequate parking and traffic management in established communities.

• Unintended density impacts in areas without sufficient transit or amenities.

• Traffic congestion from excessive waste carts.

The current proposal seeks to restore the low-density land use districts that existed prior to August 6, 2024, aiming to give Calgarians more direct say in the redevelopment of their communities. Importantly, the proposal includes exemptions for developments that have already received approval or have applications in progress under the higher-density R-CG, R-G, or H-GO land use districts before the new amending bylaw takes effect.

Impact on Buyers

For those seeking infills/higher density: If the repeal passes, the supply of new infill projects, particularly smaller-scale multi-unit developments, could slow down. This might lead to increased demand and potentially higher prices for existing infills or properties that secured their rezoning approvals before the repeal. Buyers hoping for a broader range of housing types from the original blanket rezoning may find fewer options going forward.

For those valuing established neighbourhood character: Buyers drawn to Calgary's mature, low-density communities might see this as a positive step. It could help preserve existing aesthetics, reduce pressure on local infrastructure, and maintain the current residential feel.

Affordability: The original bylaw aimed to improve affordability through increased supply. If repealed, the proposed goal of increasing supply might be hampered, potentially slowing the creation of more diverse and affordable housing types, although the motion itself argues the blanket rezoning failed to deliver on this.

Impact on Sellers

For sellers of properties suitable for infill: If your property received higher-density rezoning approval or had an application in progress prior to the amending bylaw, its value could be significantly enhanced due to its grandfathered status. For properties without such pre-existing approvals, the repeal could reduce development potential, potentially impacting future market value for those looking to sell to a builder or investor.

For sellers of established homes: This repeal could be viewed favourably by sellers who want to maintain the character and density of their immediate neighbourhood. It might alleviate concerns about high-density infill projects directly next door, potentially contributing to the stability of property values linked to current character.

Timing: The proposal is scheduled for review by the Executive Committee in November 2025, with a Public Hearing for the amending bylaw anticipated in March 2026. This extended timeline means market participants should remain informed and flexible.

My Take as Your Calgary Real Estate Expert

Calgary's real estate market is always dynamic, and policy shifts like this have real consequences for homeowners and future buyers. While the long-term effects of this proposed repeal remain to be seen, understanding the immediate implications is crucial for making informed decisions.

Whether you're considering selling a property with development potential or looking to buy into a community where character preservation is paramount, these policy discussions directly influence your strategy. Don't navigate these changes alone.

Contact me today to discuss how this proposed repeal might specifically impact your property or your buying goals. I can provide a personalized market analysis and strategic advice tailored to your needs.

For more specifics, here’s the Notice of Motion submitted and passed this past Monday:

The 2025 federal budget introduced measures aimed at housing affordability, tax fairness and targeted support for first‑time buyers. While many changes focus on supply and long‑term policy, several provisions affect mortgage access, closing costs and investor behaviour, all of which influence YOU – homeowners of Calgary.

What Changed?

• More support for first‑time buyers (expanded credits/programs) and incentives for purpose‑built rental/affordable housing.

  • Elimination of GST for first-time home buyers on NEW homes up to $1 million

  • Reducing GST for first-time home buyers on NEW homes between $1–1.5 million

  • Significant focus on increasing multi-unit homes, providing additional funding through mortgage loan insurance and securitization

  • Government’s “Build Canada Homes” focused on non-market housing, building co-op housing

• Stricter reporting/compliance for rental and short‑term rental income; some limits on deductions for unlicensed short‑term rentals.

• No direct mortgage‑rate cuts — borrowing costs still driven by Bank of Canada and lender pricing.

Impact on Buyers

• First‑time buyers: easier entry if you qualify for federal programs – check income limits and timing.

• Investors: reduced borrowing power as lenders tighten rental‑income treatment; expect higher down payments and stricter underwriting.

• Overall: mortgage rates unchanged by the budget – affordability still depends on market rates.

Impact on Sellers

• Investor listings: smaller buyer pool and more lender scrutiny — longer marketing times possible.

• Entry‑level sellers: increased demand possible where first‑time buyer supports apply.

• More scrutiny on documentation: sellers should provide clear rental documentation and highlight compliance for short‑term rentals.

Calgary Specifics

• Budget incentives likely to spur rental construction locally over 18–36 months, helping long‑term supply.

• First‑time buyer programs may be especially effective in Calgary’s relatively affordable market.

• Local investor market must adapt to tighter reporting; borrowing remains rate‑sensitive.

Bottomline…

The 2025 federal budget adds useful supports for first‑time buyers and boosts incentives for rental and affordable housing – both positive for longer‑term housing health in Calgary. However, these moves won’t immediately change mortgage rates or eliminate affordability pressures. Additionally, a material amount of funding has been directed to government agencies to build non-market housing which impacts those at most risk.

Overall, there isn’t much here. Governments issue budgets term after term, and sure there may be some impactful changes, but this is largely geared towards first-time buyers and those who are looking for non-market housing.

Buyers and sellers should focus on preparedness: clean documentation, early conversations with mortgage brokers, and realistic pricing and timelines tied to Calgary’s market fundamentals – reach out and schedule a call with me today for a consultation on how best to prepare!