What Calgary's Density Rollback Teaches Us About Protecting Housing Supply in London

A Cautionary Tale from Calgary

While London, Ontario continues to grow and evolve its approach to housing density, a concerning development is unfolding in Calgary that offers important lessons for our community. Calgary is considering significant rollbacks to its blanket rezoning rules—changes that could limit where and how much density can be built, potentially adding approximately $143,000 per unit in some cases.

For Londoners interested in housing affordability, neighbourhood development, and the future shape of our city, this story deserves attention.

What Calgary Is Proposing

Calgary's proposed changes would:

- Ban mid-block rowhouses, limiting them to the ends of blocks only - Reduce density from 75 to 60 units per hectare - Lower lot coverage allowances for new construction - Cap building heights at 10 metres - Tighten setback requirements between properties

Builders have warned that these restrictions could make many projects financially unworkable. When you add $143,000 to the cost of building each unit, that cost ultimately gets passed on to buyers—or the project simply doesn't get built.

Why This Matters for London

London has been navigating its own density conversations. From discussions about intensification along transit corridors to infill development in established neighbourhoods like Old East Village, Wortley Village, and Byron, finding the right balance between community character and housing supply is an ongoing challenge.

Our city faces similar pressures to Calgary:

- Growing population driven by immigration, students at Western University and Fanshawe College, and families relocating from the GTA - Limited housing supply contributing to affordability challenges - Neighbourhood concerns about how new development impacts established areas - Builder economics that determine whether projects move forward or stall

The Density-Affordability Connection

Here's a fundamental reality of housing economics: when you restrict the number of units that can be built on a given piece of land, you increase the per-unit cost. Land in desirable London neighbourhoods—think Masonville, Old North, or areas near the Thames River—carries significant value. Spreading that land cost across more units makes each home more affordable.

Conversely, when density restrictions tighten:

- Fewer units share fixed land costs - Per-unit infrastructure costs increase - Project viability decreases - Builders pass on costs to buyers, or abandon projects entirely

Finding the Right Balance

This isn't to suggest that density concerns are invalid. Thoughtful neighbourhood planning considers parking, green space, architectural compatibility, traffic flow, and community character. London residents who've invested in their neighbourhoods understandably want a voice in how those communities evolve.

The challenge is finding policies that:

- Enable sufficient housing supply to meet population growth - Maintain neighbourhood livability and character - Keep projects economically viable for builders - Result in attainable prices for buyers and renters

Lessons for London's Future

Watching Calgary's situation unfold offers several insights for London:

1. Policy Stability Matters

Builders make investment decisions based on current rules. When policies change unexpectedly—especially in ways that reduce what can be built—it creates uncertainty that can freeze development activity.

2. Community Engagement Should Happen Early

Calgary's blanket rezoning faced pushback that's now resulting in potential rollbacks. Engaging communities before policies are enacted can lead to more durable solutions.

3. Economics Can't Be Ignored

Regulations that make projects financially unworkable don't preserve neighbourhoods—they just result in stalled sites, delayed projects, and continued housing shortages.

4. Supply Affects Everyone

When new housing doesn't get built, pressure increases on existing inventory. This affects resale prices throughout London, from entry-level homes in Argyle to family properties in Whitehills.

What This Means for London Buyers and Sellers

If you're considering buying or selling in London, understanding these broader market dynamics helps inform your decisions. Neighbourhoods with more flexible zoning may see more development activity. Areas where density is restricted may see slower inventory growth but potentially stronger price appreciation for existing homes.

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Navigating London's real estate market requires understanding both local neighbourhoods and broader policy trends. Nickey Calford at Calford & Co. combines deep local knowledge with market expertise to help you make informed decisions. Let's connect to discuss your real estate goals.