Breaking Down the New Federal Housing Strategy – What It Means for Calgary and Alberta

In March 2025, Prime Minister Mark Carney unveiled a bold new federal housing strategy aimed at doubling Canada’s annual homebuilding pace to 500,000 units. Key components include the creation of a new federal developer (Build Canada Homes), billions in low-cost financing, grants, and a GST rebate for first-time buyers. But what does this mean for Calgary—and is it the fix Alberta needs?

✅ Pros: Big Steps Toward Affordability and Supply

1. Doubling Housing Starts: A Direct Response to Calgary’s Growth

Alberta recently surpassed 5 million residents, and Calgary continues to lead the country in housing starts, with more than 20,000 units launched in 2024. The federal strategy is well-aligned with this momentum, aiming to maintain and even accelerate this pace. With demand showing no signs of slowing, increased federal support could help Calgary stay ahead of the curve.

2. Affordable Housing Focus

The plan takes real aim at affordability, not just supply. Billions in funding, including low-cost financing and grants, could help create housing that’s accessible to lower-income earners. Calgary Housing Company CEO Sarah Woodgate is pushing for even more, asking for federal capital to acquire newly built homes and preserve them for affordable use. If implemented, this could help address the city’s growing “affordability bottleneck.”

3. Cutting Development Fees Could Lower Home Prices

Slashing municipal development fees could significantly lower construction costs—savings that could be passed on to buyers and renters. As BILD Calgary Region CEO Brian Hahn notes, these fees can be a major factor in home prices. For first-time buyers already benefiting from a GST rebate, this could make homeownership more achievable.

4. Targeted Support for Vulnerable Populations

Support for students, seniors, and Indigenous communities is long overdue. In Calgary, Indigenous organizations like the Aboriginal Friendship Centre want to be part of the solution—and federal funding targeted at culturally sensitive, community-led housing can make a meaningful difference.

5. Streamlining Development Process

Local developers and housing organizations are calling for less red tape and more direct funding. The plan’s focus on removing barriers and supporting seasoned housing providers is a much-needed shift from bureaucracy to boots-on-the-ground execution.

⚠️ Cons: Concerns and Criticisms That Can’t Be Ignored

1. Municipal Funding Gaps and Taxpayer Fallout

Calgary Mayor Jyoti Gondek strongly opposes the idea of halving development fees, warning it will force municipalities to hike taxes or cut infrastructure services. Roads, transit, sewers, and emergency services don’t fund themselves. Without replacement dollars from Ottawa, Calgarians could end up footing the bill elsewhere.

2. A One-Size-Fits-All Approach May Backfire

Mayoral candidate Sonya Sharp argues what works in Toronto or Vancouver might not work in Calgary. Redeveloping mature neighbourhoods like Bowness and Altadore requires different tools than building high-density towers downtown. Without provincial and municipal input, a national policy risks being out of touch with local realities.

3. Federal Control vs. Local Know-How

While Build Canada Homes may streamline federal oversight, some housing advocates warn about the dangers of top-down decision-making. Calgary’s experienced non-profit and municipal providers already know what works here. Any new national agency must coordinate—not override—existing efforts.

4. Limited Non-Market Housing

Only 5% of Canada’s housing is non-market (public or rent-controlled), and this strategy doesn’t do enough yet to shift that. Experts like Steve Tait say the federal government should double this figure, especially using unused public land. Without that, we risk repeating past mistakes: building more units, but not enough affordable ones.

5. Short-Term Programs Need Long-Term Commitment

Programs like the Canada Housing Benefit and the Rental Protection Fund are vital, but their expiry dates (like 2027-28 for CHB) raise questions. Woodgate and others want assurances these supports will be extended and expanded—not allowed to quietly disappear.

Will This Strategy Help Calgary?

Calgary is in a unique position. It’s growing fast, building faster, and has a strong ecosystem of housing partners. The federal strategy could be a game-changer—if it empowers local leaders, replaces lost municipal revenue, and commits to permanent affordability programs.

At its best, this plan could help Calgary become a national model for inclusive, efficient housing development. But without careful coordination and funding commitments across all levels of government, it may fall short of its promise.

As always, please reach out to me to discuss how to formulate a plan specific to you and your needs.