Author: friends@themeisle.com

Due to the 10 hikes in federal interest rates since March 2022, landlords in Calgary are struggling to cover their mortgage payments and other costs. Some landlords have been forced to increase rents on their tenants to make up for the added expenses, while others have had to sell their rental properties in order to avoid financial losses. The Bank of Canada's decision to halt a hike in the interest rate on Sept. 6 was called a "welcome relief" by Finance Minister Chrystia Freeland, but the long-term effects of rising interest rates on Calgary landlords remain to be seen.

City councillors will be deciding on a housing affordability strategy in one week that includes a recommendation to change the base residential zoning district to RC-G, which would allow for duplexes, triplexes, and row houses. This has some councillors at odds, with Ward 1 Coun. Sonya Sharp proposing a motion to streamline the current zoning process instead. The motion was voted against, but Sharp plans to explore other alternatives for the housing strategy debate.

Seven Calgary city councillors have proposed a Notice of Motion to speed up the process of up-zoning applications, allowing for higher-density residences such as townhouses and rowhouses that would not require a land-use redesignation application. However, Calgary Mayor Jyoti Gondek believes this is too early and insufficient a solution to the city's housing crisis and should instead be part of the Housing and Affordability Task Force discussion on September 14.

In August, Calgary's real estate market hit a new milestone, with prices rising for the eighth consecutive month and setting a new sales record for the month. Despite this growth, year-to-date sales continue to lag 15% behind last year's pace, and the number of available units has plummeted to a record low of 3,254. Higher lending rates have led to potential buyers holding off on purchases, and the lack of supply is further driving up prices for detached homes.