Is Calgary in a Housing Crisis?

Yes, Calgary is in a growing housing crisis. 

In our listening, we have heard stories of families losing their housing and being stuck on waiting lists, and some being forced to wander the city looking for a place that is warm and safe. We have heard of people with disabilities being forced out of their housing and being unable to find a place to live with dignity. We have heard stories of students who graduate with a desire to live and serve communities in Calgary, but then face rents they can’t afford because they have increased by 25-50%.   

Here are the stats:

• Calgary’s current rental vacancy rate is 1.4% tied with Toronto for one of the lowest in Canada. 
• The average rental cost in Calgary increased by 14.3% in 2023, the largest increase in Canada.
• One in five Calgary households, at least 84,000 households, cannot afford their housing. 
• There are over 6,000 households on the Calgary Housing Company’s Affordable housing waitlist. 
• A family now needs a household income of $156,000 to afford a detached home. 

What is R-CG or R-G Zoning? 

R-CG stands for Residential, Grade-Orientated Infill District. R-G stands for Low-Density Mixed Housing District.  R-CG is used for existing districts, while R-G is the same zoning in newer communities (built after 1985). This zoning allows for single-detached homes, semi-detached homes, rowhouses, secondary suites, and backyard suites. It does not allow for multi-story apartment buildings. The C in R-CG means that buildings are still required to meet contextual rules for that particular neighbourhood. 

Read below for more common questions and answers.

Will it result in more Affordable Housing? 

The answer is no and yes. In the short term, what people often see is older, more affordable homes being replaced with newer, more expensive homes - so how does this increase affordability? The critical element is that the new zoning will allow more homes to be built. One of the fundamental causes of the housing affordability crisis is that the housing supply has failed to keep up with demand. As more people move to Calgary, if supply does not go up to meet the demand, prices will increase overall, and those with the least ability to pay will get pushed out of their housing. This rezoning is also important because it will give the city access to $230 million dollars in grants to build non-market affordable housing. The reality is that addressing the housing crisis will require many different solutions. 

Will Communities Still Have A Say?

Yes, during the development permit process, communities will still have a chance to provide input about particular developments in their communities. The rezoning will reduce the overall process, time, and cost of starting to build new housing. The time and the complexity of the current process are factors that have been identified as preventing the market from keeping up with the demand for housing.

How Will It Impact City Finances and Taxes?

R-CG zoning will help us increase density so that we won’t have to increase taxes to the same extent. One of the biggest issues that our city faces is that the current tax rate at the current density of housing we have doesn’t cover the cost of having a vibrant city, nor the cost of maintaining and replacing our current infrastructure as it ages. The problem is that downtown (commercial taxes) no longer provides the revenue we need, and our services (and the people who provide them) have been cut to the breaking point. As our city ages, we will soon be facing infrastructure replacement costs in the billions of dollars. So we have two options - increase the density of our neighbourhoods or increase the taxes charged to residents. 

How does this relate to the Environment and Climate Change? 

Many environmental groups have advocated for R-CG and R-G zoning because to get to net zero and preserve our natural spaces, increased density of housing is essential. Increased density allows neighbourhoods to attract businesses and amenities. The result is walkable communities with the population density needed to provide affordable, frequent, quality transit. It also enables local transportation solutions like bikes and e-bikes to be effective. Higher density means less land is used, leaving pockets of land in its natural condition. This land can be used for parks, agriculture, and recreation. Increased density also allows types of housing that require less heating, such as row houses and duplexes.

Will my neighbourhood change? 

All of our neighbourhoods are in a constant state of change. People come and go. Families grow up, children leave, and new families move in. The estimates are that the change in zoning will result in about 1,500 new homes being built in a year. Spread across the city, this means that most neighbourhoods won’t see too much change from this re-zoning. Since buildings such as duplexes or row houses are more affordable for families as they raise their children, the change you will likely see is more families and children moving into your neighbourhood. This can be important for maintaining neighbourhood schools, playgrounds, and local parks. It also makes it more likely that children and grandchildren can purchase homes closer to their families.  To learn more about the impact on neighbourhoods check out this blog.0

 

Learn More

There is a lot of information available on this issue. 

• The Drop-in Center has written a policy paper and a related op-ed .
• Listen to a podcast that explains these issues from the  Enough for All poverty reduction strategy.
• Some Instagram Posts explaining R-CG 
• To see the impact where this has been tried elsewhere, read this article