Calgary homeowners now face fewer hurdles when adding basement suites after changes to secondary suite rules.

Following the citywide rezoning repeal, council voted on July 28 to make basement suites a permitted use, rather than discretionary.

For renters, more suites could increase housing supply and create more competition in the rental market. Homeowners who rent out their basement suite can offset their housing costs while providing more options for renters. According to homeowner Julie James, developing a basement suite with her home was a great decision. 

“It’s been hugely helpful. It’s highly useful,” she said. 

“My in-laws live there; it pays for half our utilities and half the property tax, and that’s big. If they wanted to move out, I would rent it to somebody else.”

Mayor Jeromy Farkas said council supported basement suites as permitted use because they’re among the fastest and most affordable ways to increase housing supply. 

“They use land and infrastructure that already exists,” he said.

“They create housing that is naturally more affordable than a detached home and make it easier for students, seniors, young workers and small families to find a place to live.”

Under the former discretionary process, the city reviewed each basement suite application and had the discretion to approve, add conditions to, or refuse it based on planning considerations. The process also allowed neighbours to raise concerns about potential impacts on the surrounding area. 

As of Aug. 4, secondary basement suites became a permitted use, meaning applications are approved if the property meets applicable zoning, building, fire and safety requirements. City council said backyard and laneway suites should remain discretionary because they’re more likely to impact surrounding areas.

What does this mean for Calgary?

Farkas said that building housing in established areas is more cost-effective than building new suburbs at the edge of city limits. He noted that infrastructure capacity varies across the city and said Calgary is not prepared for major growth in every community. 

According to Farkas, the focus is on building suites close to transit, post-secondary education and employment centers. Noting that basement suite development in communities with established infrastructure will effectively improve housing in Calgary,

“What we want to move forward with is a more targeted approach, working with communities on a nodes and corridors basis,” he said. 

Farkas said Calgary needs to keep housing affordable to attract and retain students, professionals, and future generations. 

“If we’re going to stand a chance of keeping our future generations, we need to make the decisions here now to keep that affordable,” he said. 

“We need to build as much as possible and work with the community to make sure that everyone here in Calgary has a great chance to live a good life, one that’s affordable for themselves and their families.”

Last April, the federal government announced a new funding program starting in 2026-27 called the Building Communities Strong Fund. According to the Government of Canada, the program will provide funding for infrastructure projects that support economic prosperity, housing, sport, education, health, transit, and climate adaptation.

The program will provide $51 billion over 10 years, plus $3 billion annually on an ongoing basis to support new and renewed public infrastructure in Canada, with over $1.9 billion in funding going to Alberta.

The city cannot add significant amounts of housing without expanding services such as water, sewers, and other supporting infrastructure. In the meantime, Farkas said secondary suites are the best option. 

“It’s not going to be the one single magic bullet that solves housing affordability,” he said. 

“But put simply, we’re not going to solve housing affordability in Calgary without secondary suites.”

More details here on creating a secondary suite in Calgary, including qualifying for a secondary suite incentive program.