Building a secondary suite in your home is a lot easier in Calgary today than it was a decade ago. Increasingly, homeowners are seeing that secondary suites can be a great way of increasing their property value, bringing in extra income with renters, or even acting as a conduit for multi-generational living.
Here’s what you should know about adding a secondary suite to your Calgary home. Want custom advice? Let’s talk.
Why Add a Secondary Suite to Your Home?
Adding a secondary suite in Calgary can have a lot of different benefits, including additional income, an increase in resale value, and flexibility for family and guests. There are government incentives, too, which make it more affordable to take on the planning and construction costs that come with adding a secondary suite.
Overall, the benefits include:
- Additional income: For homeowners who build a secondary suite and choose to rent it out, the extra income can help pay for their mortgage or with everyday expenses. While there are upfront costs to building a secondary suite, when they are well done, they can bring in substantial additional income that wouldn’t otherwise be available.
- Increased property value: A home with a well-designed secondary suite can be very valuable on the real estate market and can add to the price you’ll get from buyers if and when you choose to sell your home.
- Flexible living options: If you choose not to rent your secondary suite for a period of time, it can be great for multi-generational living or for hosting guests on overnight stays. For families with kids in their 20s who are craving more independent living but aren’t ready to move out or those with grandparents looking to downsize, a secondary suite can be a great solution.
Secondary Suites vs. Backyard Suites
While people commonly use the term ‘secondary suite’ to refer to any second living area on a property, it’s worth noting here that within the Calgary context, the term is specific to a self-contained residence that is attached to the main dwelling.
There are separate rules and bylaws for backyard suites, even if they have many of the same benefits as secondary suites.
- Secondary suites are often basement suites and have separate cooking, sleeping, and bathroom facilities from the rest of the home and also have separate entrances.
- Backyard suites are sometimes referred to as laneway suites and are located behind or beside the primary residence.
Calgary Secondary Suite Incentive Program
As part of its housing strategy, the City of Calgary launched a Secondary Suite Incentive Program in 2024 to encourage homeowners to add secondary suites to their properties.
The incentive is great news for anyone who is already considering a secondary suite and should help the city meet its housing goals. The program provides homeowners with up to $10,000 to cover a portion of construction costs when they develop and register a secondary suite.
While it hasn’t been formally launched yet, the federal government also announced that its Canada Secondary Suite Loan Program was doubling its limit to $80,000 to make it easier for homeowners to build secondary suites, laneway homes, and backyard suites.
Requirements for Secondary Suites & Backyard Suites
Last year, Calgary underwent a blanket rezoning that allows for secondary suites in almost every residential neighbourhood in the city. Now, the base designation for residential zoning across the city in developed communities is R-CG, which allows for semi-detached homes, townhomes, fourplexes, and rowhouses on every property, with secondary suites allowed.
Note: While blanket rezoning allows for more housing types in most residential areas, some properties may still be subject to area-specific policies, overlays, or heritage designations that override these permissions.
These restrictions can limit or prevent multi-development on a site, even if the base zoning is R-CG. It’s important to check your local area plan or consult with a home designer or planning professional to understand what’s possible on your specific lot.
The hope is that this new zoning will help increase density and bring more housing options onto the market. What it doesn’t mean, however, is that homeowners can automatically build secondary suites. They still require permits and should be registered with the City of Calgary.
The City’s permit checklist is a good starting point for understanding what is required when you’re looking to build a secondary suite or backyard suite, but there are a few essential things that are always required and a few rules that need to be followed.
- Single-detached and semi-detached homes can have both a secondary suite and a backyard suite.
- Only one secondary suite is allowed within each home.
- Rowhouses and townhouse developments can have secondary suites but not backyard suites.
Secondary Suites
In some neighbourhoods, secondary suites are listed as discretionary, and you may require a development permit from the city. You can check whether a development permit is required at your address on the City of Calgary’s website.
If you are looking to build a new secondary suite, you will need both a building permit and a separate electrical permit for all electrical installations and renovations.
A separate plumbing permit is needed to install new plumbing or alter existing plumbing systems.
Backyard Suites
The City of Calgary provides a how-to guide for designing backyard suites, and there is a relatively long list of permits that are required, including:
- Development permit
- Building permit
- Electrical permit for hook-up service
- Plumbing permit
- Mechanical permit for an HVAC contractor
- Gas permit if there are gas appliances
The costs for each of these permits can be found here.
How a Home Designer Can Help with Your Secondary Suite
Building a secondary suite or backyard suite can be a huge benefit for many homeowners, but getting one built can be a sometimes complicated process. You’ll want your secondary suite to be desirable to potential renters and practical for everyone in both the suite and your home.
Hiring a custom home designer can help simplify the process and ensure that you build a secondary suite that not only gets through the permit process without issue but also appeals to renters and provides value on the real estate market when it’s time to sell.
Our team’s extensive experience means they design secondary suites that are both functional and fit seamlessly into their neighbourhoods.
This multi-family design in Glenbrook is a perfect example and was the first of its kind in the neighbourhood. The four-unit, two-building development featured two primary and two secondary suites in each building, maximizing livable space and rental potential.
Ellergodt Design Will Help You Build a Perfect Secondary Suite
Secondary suites provide real value to the City of Calgary as a whole and to homeowners looking for additional income through renting and to increase the value of their property.
Working with a custom home designer like Ellergodt Design will prevent delays in the permit process and ensure a beautiful secondary suite that accommodates the needs of renters and visitors alike.
To get started on your secondary suite today, fill out the contact form or call us at (587)874-5748.
FAQs About Secondary Suites
What defines a secondary suite?
A secondary suite in Calgary is a self-contained “dwelling unit” within a single-family home. Secondary suites are legally required to have their own entrance that is accessible without entering through the main unit, at least one bedroom with egress windows, a bathroom, and a kitchen.
Are secondary suites allowed in Calgary?
Yes, secondary suites are allowed in almost every neighbourhood in Calgary. In some areas, development permits are required. Check whether that applies to your property.
What is the secondary suite grant in Alberta?
There is no province-wide secondary suite grant in Alberta. In Calgary, however, there is a Secondary Suite Incentive Program that provides up to $10,000 for qualifying homeowners. The federal government has a secondary suite loan program in the works, too.
What is the secondary suite registry in Alberta?
There is no secondary suite registry in Alberta, but Calgary does have a Secondary Suite Registry that lists safe and legal secondary suites that have obtained the necessary permits and safety inspections.