When Aaron Paton bought his house in Canyon Meadows in 2015, the basement’s potential was part of the appeal. He started developing a secondary suite shortly after moving in, and had most of the work done by 2017, but he’s been gradually bringing it up to code as The City of Calgary has simplified its secondary-suite rules.
“It’s an older bungalow with solid bones,” Paton says. “I always planned to do the basement properly and I’ve been picking away at it for a couple years now. I’m kind of a by-the-book guy, and the process is pretty straightforward once you start.”
For the 43-year-old media contractor, the decision to clear the last hurdle and work with The City to ensure his suite meets up-to-date safety and building-code requirements, and that the suite is legally registered, comes partly from how much simpler these once intimidating steps have become in recent years. It’s also part of a shift in how Calgarians are navigating housing affordability and civic policy.
“It’s cool The City’s actually making it easier,” Paton says. “You can tell most people want to do this the right way.”
Legal reform was necessary
Across Calgary, thousands of homeowners are reaching the same conclusion as Paton after years of political battles and slow reform. By The City’s definition, a secondary suite is a self-contained residence located within a principal residence. It must have its own separate kitchen, living, sleeping and bathroom facilities, as well as an entrance that is accessible from outside, without passing through the primary unit.
For decades, basement suites and backyard apartments (“in-law” or laneway suites) helped fill housing gaps in Calgary, but operated in a legal gray zone.
In 2009, a late-night fire in an unregulated basement suite in Parkdale killed three tenants. The space had no working smoke alarms and only one exit. The windows did not meet fire code, and were covered in metal bars that required tools for removal, trapping the victims. The tragedy shocked Calgarians and exposed the dangers of the city’s unregulated rental market.
The incident became a rallying point for reform. In his 2010 campaign to become mayor, Naheed Nenshi made secondary-suite legalization a campaign issue. Throughout the decade following Nenshi’s election, Calgary introduced a secondary suite registry, simplified approvals and rethought enforcement.
In 2018, two major reforms were passed to bring secondary suites more legitimacy. City council approved amendments to the Land Use Bylaw, making it possible for property owners to develop a secondary suite without approval from council on each individual suite. Plus, a two-year amnesty period was introduced for illegal suite owners to self-identify, apply for the appropriate permits and legalize their existing suites at a reduced cost.
A supportive approach to secondary suites
Josh Howes, the City of Calgary’s secondary suites program manager, has witnessed this shift from within. A 14-year City employee, he spent the bulk of his career in development, building and business licensing before taking on the suite program three years ago.
Howes says the current system focuses on education and support. That tracks with The City introducing the Secondary Suite Incentive Program in 2024. The program, partially funded by $40 million from the federal government, reimburses qualifying homeowners up to $10,000 in safety-related costs to build and register secondary suites.
“We’re not here to build the units,” Howes says. “We’re here to support people who are willing to invest and make their suites safe and legal.”
The approach seems to be working. In 2025, Calgary surpassed 22,000 registered suites, up from just 1,000 a decade ago. At the time of the 2018 reforms, The City estimated there were upwards of 16,000 illegal secondary suites in existence. Most new applications come from homeowners, not developers, which Howes sees as a sign of success. “A few years ago, people were afraid to even talk to us,” he says. “Now, they’re calling because they want to do it right.”
Even with the incentive program, the cost remains too high for some homeowners. So, thousands of unregistered suites remain in use. Enforcement, like inspections, is mainly complaint-based.
“We know there are illegal suites out there,” Howe says. “But the more people see the benefits of doing it properly, the more they follow suit.”
Builders respond with secondary-suite options
As established communities wrestle with the challenges of increasing density, new communities have adjusted quickly. For builders, secondary suites are becoming a standard feature. At Trico Homes, area sales manager George Safdary oversees sales in Heartwood, a new southeast community. After eight years with Trico, Safdary has noticed an increased demand for legal suites with prospective buyers. In response, the builder now offers “mortgage-helper” designs at the pre-sale stage.
“It’s an optional upgrade, but it’s appealing because it helps offset the mortgage or it can help people stay in the market,” Safdary says. “We can add the full legal suite at the time of purchase, or rough it in so homeowners can finish it later without major renovations.”
Jamie Ivey, area manager with Shane Homes, adds that the ease of the approval process has kept pace with demand.
“The City’s made it pretty easy to incorporate suites,” he says. “It used to be that the lots had to be 44 feet wide. Now we’re down to 32 feet. Parking restrictions are easier, too. Now you just need one extra stall, no matter how many bedrooms, and the driveways count. That small change makes a big difference.”
Not unlike other cities across North America, Calgary is experiencing an enduring housing crisis. Here, some factors include the downturn of the economy and the rapid influx of newcomers over the past three years, enticed by promises of affordable living from former Premier Jason Kenney’s “Alberta is Calling” campaign. In this financial climate, homeowners in Calgary are increasingly looking for new solutions for their future living arrangements.
Backyard suites as part of the housing solution
Cory Markin, owner of Calgary Laneways, has carved out a niche building laneway suites in Calgary since 2013. His projects often serve families looking for flexible, multi-generational living. Laneway suites (also known as backyard suites) are a type of secondary suite that is not attached to the primary dwelling.
“Mom and Dad sell their boomer house, build this in the back of their kid’s lot, and move in next door,” Markin says. “It keeps families close and adds value.”
Demand for laneways is up since 2020, Markin says. This could be in part due to the March 2018 secondary suites reform. Calgary Laneways is now doing close to 20 projects per year instead of the handful it was doing pre-COVID-19. And, while the upfront cost is often three to four times that of a legal basement suite (which his company also builds), Markin says the economics are hard to deny, especially in a tight housing market like Calgary’s.
“One of my recent clients in Ogden spent about $150,000 on her laneway suite. The property was worth maybe $500,000 before and now it’s worth close to one million,” he says. “She’ll be able to pay it back in four years and three months.”
Markin is not a fan of multi-unit buildings reshaping inner-city neighbourhoods like his home community of Highwood. “You lose the trees and the light, and they feel overbuilt for the lots. Laneways are a way better solution. You add density without changing the face of the neighbourhood.”
Markin says he’d like to see The City adjust policies further so that homeowners can pursue laneway housing more easily.
“If I build a laneway, I have to have parking on site — no exceptions,” he says. “But, if someone knocks down a house and puts up a 12-unit complex, they only need four stalls.”
Howes says The City is adapting its policies to support expanding demand for housing, backyard suites included. “We’ve got funding set aside for backyard suites; the next chapter is seeing how people use that flexibility,” he says.
At the time of writing, the incentive program only included secondary suites attached to the main dwelling, excluding backyard and laneway dwellings. But The City did launch an online portal, open until December 2025, for feedback about a backyard suite incentive program.
While the wild housing ride in Calgary continues to shift, secondary suites will remain a key piece in helping The City manage demand, now and into the future.
“Secondary suites have been part of Calgary’s fabric forever,” Howes says. “What’s changed is that we’ve created a clear path for people to do them properly, openly and transparently.”
An online map shows where all registered suites in the city are located: secondarysuites.calgary.ca
