Building a Secondary Suite in Calgary Just Got Easier

It is now easier for Calgary homeowners to build secondary suites. In April, City Council approved changes that automatically allow secondary suites as a “permitted use” across Calgary. This means homeowners can avoid the need for a development permit and only need a building permit, as long as the suite meets all requirements outlined in the applicable bylaws. The rules for backyard suites remain unchanged.

The change is expected to significantly reduce the time and cost involved in building a secondary suite. According to city administration, homeowners could save up to six weeks in processing time and more than $600 in permit fees. The city estimates that approximately 2,300 secondary suites could be built each year as a result of the new approval process, helping increase the supply of housing throughout Calgary.

Legal secondary suites can benefit homeowners in several ways. They can be used as rental units, guest accommodations, or additional living space for family members. They can also increase the overall value of a property while providing more affordable housing options in established communities. In 2024, the city introduced an incentive program offering qualified homeowners up to $10,000 toward the cost of building, improving, or legalizing a secondary suite.

Since the launch of the incentive program, the number of suites listed on the city’s Secondary Suite Registry has doubled, increasing from approximately 13,000 in 2024 to 26,000 in 2026. The program has helped homeowners create safe and legal housing while increasing the availability of market-affordable rental units in communities where residents already have access to services, amenities, and transportation.

New applications for the Secondary Suite Incentive Program are currently being placed on a waitlist, although homeowners whose applications are already under review remain eligible for funding. The waitlist will remain open until applications have been reviewed and available funding has been distributed. For anyone considering buying or selling a property with a secondary suite, it is important to understand local comparable prices, current market conditions, and the steps involved in the purchase or sale of a home with a suite.