How most major Canadian cities being reshaped through zoning amendments

Calgary, Canada
Land & New Construction
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How most major Canadian cities being reshaped through zoning amendments

Brandon P.
Investor · Regina, SK · Member since 2017 · 76 posts · 56 votes

The federal government in Canada has rolled out a program called the Housing Accelerator Fund to most larger cities across the country. While the fund was announced in 2021, the first city to be approved for funding was London, Ontario in September 2023. Over the past two months, many other cities have been approved for funding, primarily in Ontario.

The program provides cities with millions of dollars in funding in exchange for zoning bylaw amendments. The intent of the bylaw amendments is to increase density in existing neighborhoods and reduce red tape for developers. For the cities that have implemented the amendments, this has resulted in changes where neighborhoods that were only zoned for single-family homes can now have fourplexes or townhomes built, and it is significantly reducing red tape around the parameters of where larger multi-family buildings can be developed.

While the changes will provide ample opportunities for developers, existing residents in the neighborhoods may bear the burden of the ongoing construction and increasing population once the units are built and rented out. Apartments will be built on greenspace that was recently undevelopable, and older homes will be demolished and replaced by fourplexes and townhomes.

The Housing Accelerator Fund is a promising initiative that aims to increase housing supply for investors. It will absolutely re-shape most major Canadian cities and will permanently alter the neighborhoods that have been untouched for decades.

Regina City Council Bylaw Amendments

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y

There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

    With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

    2Reply
  • Stevo Sun
    Calgary, AB · Member since 2021 · 327 posts · 176 votes
    2y
    Quote from @Theresa Harris:

    There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

    With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

    The increase in population has been too drastic. The demand shock due to immigration and non permanent residents have created challenges in all cities, big or small. 

    The housing supply can't keep up with the large influx of people. Even with zoning changed we still have a lot of issues. Other than parking requirement the cost of construction is another big hurdle. It is extremely unlikely to build any infills or other missing middle housing that would be affordable right now. Interest cost, material and labour, etc are all through the roof. Until the government creates some other incentive for development I doubt we will see a large increase in housing stock.
    1Reply
  • Brandon P.
    OP
    Investor · Regina, SK · Member since 2017 · 76 posts · 56 votes
    2y


    Quote from @Theresa Harris:

    There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

    With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

    Several cities are scrapping the parking minimums. I completely agree that there will still be a lot of red tape and issues from the changes, however it’s a huge opportunity for new investors.

    Four plexes are one of the best options for young or new investors and can be built to fit in well with existing neighborhoods.
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @Brandon P.:


    Quote from @Theresa Harris:

    There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

    With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

    Several cities are scrapping the parking minimums. I completely agree that there will still be a lot of red tape and issues from the changes, however it’s a huge opportunity for new investors.

    Four plexes are one of the best options for young or new investors and can be built to fit in well with existing neighborhoods.

     It is a good opportunity.  Things like parking are critical from a safety perspective (creates blind spots for people crossing the street and makes navigating streets harder) and if not kept in check, will create other problems down the road-you have to park a block away from your home as there is no parking nearby or there are limited numbers of parking passes.

    0Reply
  • Brandon P.
    OP
    Investor · Regina, SK · Member since 2017 · 76 posts · 56 votes
    2y
    Quote from @Stevo Sun:
    Quote from @Theresa Harris:

    There is still lots of red tape at the municipal level.  Parking is going to be one of the biggest issues.  Where I am (city of 100K), even with only a few basement suites, the residential homes often have 2-4 cars for each.  A fair number don't park in their garages because it is full of crap or in their driveways and they park on the roads making it harder to drive down them-especially when kids are out. Cities also add alley access (and no one parks in the back) making the streets even narrower.  Some areas, you can only get one lane of traffic through due to the narrow roads and cars parked on both sides.  Lots of smaller, older home were likely to be torn down in big cities so buyers can build larger infills.

    With Trudeau and his government allowing 5 million+ immigrants in over the last 5-7 years (which is not sustainable), our population has grown too quickly and it has created problems.  A countries population can't grow by 10% in 5 years and not experience problems, especially a country that has a smaller population size like we do.

    The increase in population has been too drastic. The demand shock due to immigration and non permanent residents have created challenges in all cities, big or small. 

    The housing supply can't keep up with the large influx of people. Even with zoning changed we still have a lot of issues. Other than parking requirement the cost of construction is another big hurdle. It is extremely unlikely to build any infills or other missing middle housing that would be affordable right now. Interest cost, material and labour, etc are all through the roof. Until the government creates some other incentive for development I doubt we will see a large increase in housing stock.

     They have provided 5 year tax exemptions here for years, it’s not a huge amount of money but helps spur new construction. I wouldn’t be surprised if some cities started doing 10 year exemptions.

    As far as interest costs and the cost of construction goes- the majority of “homes” built will be apartment buildings by developers, funded through cmhc.

    This has already been going on for years but now developers are going to be able to build these on greenspace that was considered in developable previously due to zoning, ie, old school yards, large undeveloped lots in residential areas, large schools yards with excess space, etc.

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