Calgary Awards $29.3 Million to Deliver 566 New Non-Market Homes
What the Housing Capital Initiative Means for Our City
Calgary continues to take deliberate steps to address housing affordability. In February 2026, the City of Calgary announced it will invest $29.3 million through the second and final round of its Housing Capital Initiative (HCI), supporting the development of 566 new non-market homes across the city.
This latest allocation builds on an earlier round of funding announced in May 2025. Combined, the city’s total capital investment through the HCI now reaches approximately $60 million.
For a city navigating population growth, supply pressures, and affordability challenges, this initiative represents more than just funding — it reflects a strategic commitment to diversifying Calgary’s housing landscape.
What Is the Housing Capital Initiative?
The Housing Capital Initiative was introduced in 2024 as part of Calgary’s broader housing strategy. Its purpose is straightforward: provide timely capital funding to charities, non-profits, and Indigenous organizations so they can build or acquire non-market housing.
Non-market housing typically refers to homes offered below market rental rates. These units are often operated by non-profit housing providers and are intended for households who may not be adequately served by the private rental market due to income constraints, accessibility needs, or other vulnerabilities.
Rather than replacing private development, the HCI is designed to leverage funding from multiple levels of government — including provincial and federal partners — while accelerating shovel-ready projects.
As noted in the city’s announcement, increasing non-market housing supply remains a top priority for Council. The HCI is one of 98 actions under Calgary’s housing strategy.
For official details, you can review information directly from the City of Calgary website.
Who Received Funding?
The second round of funding supports six non-profit organizations delivering eight projects across Calgary. Recipients include:
Trellis Foundation for Community Impact
Liberty Housing Organization
Norfolk Housing Association
HomeSpace Society
Onward Homes Society
These organizations collectively serve seniors, families, individuals exiting homelessness, and those requiring supportive housing environments.
The funded projects span a wide range of housing types and neighbourhoods, including:
Downtown
Inner city southwest and northwest
Bowness Road
Skyview Ranch NE
Haddon Road SW
Radcliffe Drive SE
This geographic distribution is intentional. Non-market housing is no longer viewed as something that should be isolated or concentrated in a single district. Instead, modern housing policy encourages integration within established communities — near transit, services, employment nodes, and schools.
Why This Matters Now
Calgary’s housing environment has shifted significantly in recent years.
The city experienced strong in-migration following economic recovery cycles and interprovincial movement. At the same time, rising construction costs, higher interest rates, and limited affordable supply placed upward pressure on rents.
While we are currently seeing some stabilization — particularly in certain apartment-style segments — affordability remains a real concern for many households.
Non-market housing helps:
Reduce pressure on the lowest end of the private rental market
Provide stable housing for vulnerable populations
Support workforce retention in essential sectors
Create long-term community stability
When households have access to stable housing, broader economic and social systems function more efficiently — from education to healthcare to employment continuity.
The Role of Non-Market Housing in a Balanced Market
At Citysearch, we monitor both private and public housing trends closely because they intersect more than many realize.
Non-market housing does not compete directly with executive or high-end rental homes. Instead, it primarily addresses needs that would otherwise fall into lower-income rental brackets — where demand has historically been intense.
By increasing supply in this segment, the city may help reduce:
Emergency housing demand
Transitional housing bottlenecks
Overcrowding
Instability in lower-tier rentals
Over time, this can contribute to a healthier overall rental ecosystem.
It’s also worth noting that non-market developments often leverage additional provincial and federal programs, including funding streams such as the federal Housing Accelerator Fund.
Location Strategy: Integration, Not Isolation
One of the more encouraging aspects of this announcement is the distribution of projects across established neighbourhoods.
Communities such as Bowness, Skyview Ranch, and areas in the southwest and southeast reflect a shift toward integrating affordable housing into diverse residential environments.
This approach supports:
Access to transit
Proximity to employment
Community services
Schools and childcare
Walkability
Housing policy is increasingly focused on inclusion rather than segregation. When thoughtfully designed and managed, non-market housing blends seamlessly into surrounding communities.
Capital Investment vs. Operating Support
It’s important to clarify that the HCI is a capital investment program. It provides upfront funding to help projects move forward — particularly at stages where financing gaps could stall development.
Long-term operating sustainability typically comes from:
Rent structures
Government operating agreements
Layered funding models
Strategic asset management by non-profits
The emphasis on “timely capital investment” is crucial. Delays in housing development can compound affordability challenges quickly in a growing city.
Broader Economic Context
Calgary’s housing market has experienced cycles — from rapid growth to correction to stabilization. Currently, we are seeing:
Increased purpose-built rental supply
Softening rents in standard one- and two-bedroom units
Stable demand for executive-calibre properties
Lower demand for furnished units
More long-term inventory entering the market due to short-term rental restrictions
In that context, non-market housing expansion is less about immediate rent reduction and more about long-term structural stability.
The city’s housing strategy recognizes that supply diversity matters — from executive homes to entry-level apartments to supportive housing environments.
What This Means for Property Owners
Private landlords often ask whether non-market housing will impact rental values.
Historically, the effect is nuanced.
Non-market housing primarily addresses a segment of renters who may not qualify for or sustain market rents in certain buildings. It does not generally impact executive homes or professionally managed mid-to-upper-tier properties.
In fact, stabilizing vulnerable housing segments can reduce downstream social pressures that affect neighbourhoods overall.
From a property management perspective, long-term stability and responsible development are positive indicators for the city’s future.
Looking Ahead
With a total of $60 million invested through two rounds of the Housing Capital Initiative, Calgary is making a tangible commitment to housing accessibility.
However, housing challenges are complex and ongoing. Capital investment must be paired with:
Smart zoning policy
Infrastructure planning
Transit expansion
Collaboration with developers
Continued coordination between municipal, provincial, and federal governments
As Calgary continues to grow, the conversation around housing will remain central to economic development and quality of life.
Final Thoughts
The $29.3 million allocation for 566 non-market homes represents a meaningful step in Calgary’s evolving housing strategy.
By partnering with organizations such as Trellis Foundation for Community Impact, HomeSpace Society, and others, the City of Calgary is reinforcing a long-term commitment to affordability and inclusion.
Housing is not a one-size-fits-all solution. A resilient city requires a full spectrum of housing options — from luxury executive homes to affordable non-market units.
At Citysearch, we will continue to monitor market dynamics, policy shifts, and development trends so our clients — whether investors, landlords, or tenants — remain informed and strategically positioned.
For further information about the Housing Capital Initiative and Calgary’s broader housing strategy, visit the official City of Calgary housing webpage.
Calgary’s growth story continues — and housing remains at the centre of it.
