Unlocking Investment Potential: The City of Calgary’s Secondary Suite Incentive Program

This post is written by Trusted Partner, Phipps Real Estate Group. To become a contributing editor, please contact our Real Estate Investor Solutions Specialist, David Maxwell at david@reincanada.com.

The City of Calgary recently unveiled an incentive program to support those thinking of adding a legal secondary suite to their property. Designed to encourage the creation of secondary suites within existing homes, this program offers financial incentives and opens doors to a number of benefits for investors. Let’s delve into why secondary suites continue to be a prime investment strategy and how Calgary’s new program amplifies their appeal.

The allure of secondary suites continues to gain traction in the real estate landscape for several compelling reasons:

1. Income Generation: One of the most appealing aspects of secondary suites is their potential to generate an additional income stream for property owners. By converting underutilized space within a property into a self-contained rental unit, homeowners and investors alike can offset mortgage payments and boost cash flow.
2. Increased Property Value: Beyond immediate rental income, secondary suites can significantly enhance the overall value of a property. With housing affordability remaining a pressing concern, properties with secondary suites appeal to a broader demographic, thereby commanding higher resale values and rental rates.
3. Flexibility and Versatility: Secondary suites offer unparalleled flexibility, catering to a diverse range of housing needs. Whether it’s accommodating multigenerational families, providing affordable housing options for students or young professionals, or catering to short-term rental markets, the versatility of secondary suites provides options and ensures a steady demand regardless of market fluctuations.

Calgary’s Secondary Suite Incentive Program: Here’s a glimpse into what the program entails and why it’s a game-changer for investors.

1. Financial Incentives: The program will provide qualifying homeowners with up to $10,000 to build and register a legal secondary suite. At this time, the incentives apply to suites built within the main dwelling only and not for backyard or detached suites. Applications are limited to one per person, and you must own the property throughout the entire process. Additional incentives include up to $5,000 for those that meet certain accessibility standards and up to $1,250 for energy efficiency improvements. For specific details on the application process, visit the City of Calgary website.
2. Streamlined Approval Process: Recognizing the bureaucratic hurdles that often deter homeowners from pursuing secondary suite development, Calgary’s program aims to streamline the approval process. The program empowers investors to navigate regulatory requirements with more ease, accelerating project timelines and minimizing red tape.
3. Community Impact: Beyond individual financial incentives, Calgary’s program underscores the broader benefits of secondary suites. By increasing the supply of affordable housing options, secondary suites contribute to neighborhood revitalization, and can help to alleviate housing shortages—a win-win scenario for investors and residents alike. This is particularly true in a city like Calgary which has a large amount of urban sprawl and low density compared to other major Canadian cities.

In an era characterized by evolving housing dynamics and shifting market paradigms, Calgary’s Secondary Suite Incentive Program provides an opportunity for forward-thinking investors. By harnessing the income-generating potential and versatility of secondary suites while leveraging the financial incentives offered by the program, investors can unlock untapped value within their properties.

If you are in the Calgary area, or building a portfolio from across the country, Phipps Real Estate Group is here to support you with all of your real estate needs! Our team has extensive experience with secondary suites, and the resources to support you every step of the way.