Multi-Generational Housing Demand Surges in Calgary Amid Affordability Crisis
Multi-generational homes have existed in Calgary for decades, but a sharp increase in housing costs over the past five years has propelled these dwellings into high demand. This trend reflects a growing movement where downsizing parents and first-time homebuying children are joining forces to navigate the city's expensive single-family market.
Affordability Drives Mainstream Adoption
Michael Cain, broker and owner of Re/Max House of Real Estate in Calgary, highlights affordability as the primary catalyst. "My mom is Italian, and back in the ’60s, they were doing this," Cain says. "Fast forward to today, and affordability is the big driver, especially for first-time buyers." With Calgary Real Estate Board statistics from January showing a benchmark price of $724,000 for single-family detached homes—down only three per cent year-over-year—many young buyers face significant financial barriers.
Cain explains that multi-generational arrangements allow aging parents to move in with their adult children, sharing costs and enabling homeownership that might otherwise be unattainable. "With the way our market has gone, and home pricing across Canada for that matter, it’s just not affordable for the younger generation," he notes.
Cultural Traditions and Modern Trends
While multi-generational living has long been a cultural norm among newcomer families, it is now gaining traction across broader demographics. Statistics Canada reports that approximately 20 per cent of dwellings with more than one inhabitant in Canada are multi-generational homes. This shift is not limited to Calgary, indicating a nationwide response to housing affordability challenges.
The benefits extend beyond first-time buyers. Downsizing parents, particularly those who are snowbirds, find advantages in such arrangements. "If the parents are snowbirds, this type of arrangement allows them to travel for the winter with their kids still around to take care of the place," Cain adds.
Market Dynamics and Builder Response
Builders like Edmonton’s Cantiro Homes are responding to this demand by constructing homes specifically designed for larger multi-generational families. These properties often feature separate entrances to basement suites, catering to the need for privacy and independence within a shared living space.
However, realtor Jared Chamberlain with REAL Broker in Calgary observes that demand has cooled slightly from its peak, partly due to rising vacancy rates. "Overall demand isn’t what it was at its peak," Chamberlain says. He notes increased interest from buyers looking to rent out units to help cover mortgage costs, adding another layer to the trend.
Government Support and Future Outlook
Recognizing the growing need, the federal government introduced a tax credit in 2022 for renovations that convert homes into multi-generational dwellings. This policy support underscores the importance of such housing solutions in addressing affordability issues.
As Calgary's real estate market continues to evolve, multi-generational homes represent a practical strategy for families to achieve homeownership and financial stability. Cain emphasizes the appeal: "There are a lot of things that are attractive for the younger generation that can’t afford to get into a house and want to stay close with their family." This trend is likely to persist as housing costs remain a central concern for many Canadians.
