As Calgary grows, some residents struggle to keep up with increasing housing expenses. 

Calgarians feel like they can’t get ahead, while the city needs to fund expansion projects for the infrastructure and services that support a rapidly growing population. 

According to Sasha Tsenkova, an urban planning expert and professor of Architecture, Planning, and Landscape at the University of Calgary, there’s a foundational imbalance contributing to this affordability squeeze. 

“One out of every five households is facing an affordability challenge, and that means that they’re paying more than 30 per cent of their pre-tax incoming housing costs,” she said.

“In the last five years, there’s been a fast increase in housing costs and rent. Ranging from 35 to 40 per cent, while income growth is more modest in the range of 8 per cent.”

She said that people are carrying that burden in both home ownership and the rental market. With higher property ownership costs, comes higher rent for tenants and a more frugal lifestyle for most Calgarians. 

According to a recent study by Rates.ca, 45 per cent of Canadians who renewed their mortgages since January 2025 said they are directing half or more of their monthly household budget toward mortgage payments, as interest rates increased to between 2 and 4.99 per cent.

Approximately 90 per cent of homeowners aged 18 to 34 say their mortgage accounts for 50 to 70 per cent of their monthly budget, with 56 per cent of newcomers saying the same. Along with rising mortgages, house insurance is expected to increase by 5 to 10 per cent this year.

For Calgarians, these growing expenses paired with recent increases in property tax mean some households are stretched thin. According to former homeowner Niccole Hollerin, she had no choice but to sell her home. 

“I couldn’t afford to pay it,” she said. 

“I’m on long-term disability, and the increases were too much. I couldn’t afford it between gas and utilities and then cellphone bills and groceries, so with everything being up, how can you afford to own a house?”

According to homeowner Jonah Ackerman, after a major setback, he’s seen the harsh realities of affording to own his home.

Ackerman had to take time off work and delay his monthly housing payments to support his family after their newborn was placed in the Neonatal Intensive Care Unit. His dues added up and property tax increased, leaving Ackerman paying roughly $3,000 a month in mortgage payments alone.

Ackerman said he’s at a loss on how to get ahead.

“The pressure is quite intense from these increases, you’re going paycheck to paycheck,” he said.

“What more am I going to have to do if prices are still going up? I’d like to see what more the government can provide other than a $100 Energy rebate.”

Mortgage payments are taking up a significant share of household budgets, while property taxes rise to accommodate growth. At the same time, wages are failing to keep pace with these rising costs. The challenge is finding a way to improve the city without adding further pressure on citizens. Tsenkova said there is no simple solution. 

“It’s a constellation of problems,” she said. 

“Cities are simply unable to cope with the responsibilities they have, given the magnitude of growth and the cost of infrastructure services.” 

Increasing property taxes are a growing source of frustration for many Calgarians who say they’re paying more, but don’t always see the money reflected in their communities. This leaves some citizens wondering where their tax dollars are going. 

Ackerman said he doesn’t see the extra money reflected in his community.

“You know, last year we didn’t have our medians mowed, my neighbours ended up having to do it themselves. Things aren’t being maintained around here,” he said.

“We would love to see some more detailed metrics on where exactly the funding is being spent.”

Tax transparency and perception 

Of the total property tax bill, 58 per cent goes to the City of Calgary while 42 per cent goes to the Government of Alberta. 

This year, the provincial portion increased by 21 per cent, adding an extra $388 per year, compared to a $218 increase in 2025. By contrast, the city portion increased by 1.8 per cent or $49 per year, in 2026, compared with a $135 increase in 2025. 

Overall, the province’s share increased by $212 million in 2026, representing a 19.8 per cent increase for residential properties and an 8.75 per cent increase for non-residential properties compared to 2025. 

Calgary now sends more than $1.2 billion in property taxes to the provincial government, the highest amount among Alberta cities. The provincial share increases are meant to help fund education for public and catholic schools. 

The municipal portion funds operational services like transit operations, water and waste services, garbage pickup, the Calgary Police Service and Calgary Fire Department, as well as community and corporate services. 

The funding also goes towards capital investments like building, upgrading, or replacing infrastructure such as roads, bridges, water mains, transit stations, and public recreation facilities.  

For the city to keep up with the needs of a growing population, they need adequate funding to expand the infrastructure and services for Calgarians. According to Tsankova, a long-standing infrastructure deficit that isn’t funded by senior levels of government is a big problem. 

“The infrastructure funding gap for Calgary is in the range of 7 billion, she said.

“It cannot be funded with (just) property taxes. It’s as simple as that.”

Tsenkova said the city may face increasing pressure to fund new infrastructure while also addressing the cost of what is already in place. She said this means Calgarians could see the financial impact of growth reflected in higher taxes and other costs.

“It’s not just $100 on your property tax bill. This is going to go even higher. It is about engaging in a process where we begin to understand that growth comes with a price,” she said.

“Continuing to accumulate more and more deficit is just the recipe for offloading our problems onto the next generation, onto our children, grandchildren. This is about families, neighbours and better governance.”

For Tsenkova, the affordability debate isn’t as simple as removing the costly burden on homeowners and renters. The challenge is about who will bear the cost of these long-term investments needed to keep the city liveable, functional and affordable as it grows. 

Moving forward

According to Mayor Farkas, the focus is on working towards a balanced housing strategy by using every tool available so that Calgarians can live an affordable life for themselves and their families.

“The decisions that Calgary makes around fees and taxes have real ramifications for how local families and business owners choose to locate,” he said. 

“If we’re going to stand a chance of keeping our future generations, we need to make the decisions here, now, to keep it affordable. We are going to be doing our best through the upcoming four-year budget to keep Calgary competitive.”

In 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 $51 billion over 10 years, plus $3 billion annually on an ongoing basis to support new and renewed public infrastructure in Canada.

The funding will go towards projects that support economic prosperity, housing, sport, education, health, transit, and climate adaptation. The project may help ease city-wide pressures when it comes to housing and other priorities. 

Property taxes fund important functions that support Calgarians, and the growing need to improve them explains why some households feel robbed. Tsenkova said that as these pressures grow, they’ll pay off in the long run.

“Growth comes with a price, and it’s reasonable to believe that shared opportunity is going to pay back in the future.”