The findings of a recent report released by a think tank organization places Calgary as one of the most difficult places in Alberta to develop and build new homes.
The Fraser Institute’s investigation into ‘Residential Land-Use Regulation in Alberta’s Calgary-Edmonton Corridor’ determined home developers, and those looking to purchase a new home in Calgary, are at the mercy of a system bogged down by municipal red tape. The delays associated with civic approval add a substantial amount to the price tag of new homes in Calgary, raising the cost, on average, by approximately $25,000.
According to the report, delays are commonplace in Calgary when compared to other municipalities in Alberta.
- The average development approval in Calgary takes 13 months, more than double the length of time it takes to secure an approval in Strathmore (six months)
- On average, a simple rezoning request in Red Deer takes three weeks, a fraction of the time required to secure similar approval within Calgary (average of six months)
“If you are a home builder and the government lays on more regulations or more red tape, that’s more time you have to spend on each process,” explains the Fraser Institute’s Ken Green. “Time is money so it eventually goes into the bottom line of the house you bought.”
According to the Fraser Institute report, the amount of red tape development companies face in Calgary pales in comparison to Rocky View County.
Most regulated to least regulated municipalities – Calgary-Edmonton corridor
- Rocky View County
- Calgary
- Chestermere
- Red Deer
- Edmonton
- Okotoks
- Airdrie
- Cochrane
- Strathmore
The six month wait for a rezoning request in Calgary is dwarfed by the 14 month waits in Rocky View County.
To read the entire findings of the reports, visit Fraser Institute: New Homes and Red Tape
With files from CTV's Kevin Green
