Hidden costs squeeze Calgary’s ‘missing-middle’: CICBA report

Key Takeaways:

• Townhome infill in established Calgary neighbourhoods carries about $100,000 more per unit in regulatory burden than single/semi-detached, driven by longer approvals, infrastructure-related fees and added conditions.
• Time is the biggest cost driver: approvals average ~225 days for townhomes (vs ~40 days for single/semi), stretching to ~265 days if appealed; CICBA translates this into carrying costs of $112,500 per townhome ($132,500 if appealed) versus $20,000 for single/semi.
• The group reports $21,250 per-unit savings already achieved in 2025 and sets a target to close the full $100,000 gap by October 2026, proposing “smart adjustments” to timelines, fees and conditions plus senior-level City–industry check-ins and a tiered trust fast lane for proven builders.

The Whole Story:

Calgary’s inner-city builders say townhomes—expected to be a more affordable option than single or semi-detached homes—face a regulatory cost penalty that is “disproportionately high,” jeopardising the viability of missing-middle housing in established neighbourhoods. The Calgary Inner City Builders Association (CICBA) estimates the additional burden at roughly $100,000 per unit, driven by approvals time, infrastructure-related fees and added construction conditions.

The report frames the city’s housing challenge plainly: infill growth is as critical as greenfield development for tax stability, long-term infrastructure efficiency and sustainable urban form—but process and policy create a headwind for townhome delivery. CICBA categorises regulatory costs into three buckets—time and risk, onsite/offsite infrastructure and fees, and additional construction—and says each has escalated for infill townhomes relative to other low-density forms.

On approvals speed, the group’s aggregated project data (2024–2025 permits) shows single and semi-detached infill typically clear approvals in ~40 days, while townhomes average ~225 days; if appealed, timelines extend to ~265 days. CICBA translates those delays into “equivalent time cost” of about $20,000 for single or semi-detached versus $112,500 for a townhome, or $132,500 if appealed. The group notes that added consulting and appeal costs sit on top of those carrying-cost figures.

CICBA argues the system exhibits a “systemic bias” toward single and semi-detached projects, even as the Municipal Development Plan targets a 50/50 growth balance between new communities and established areas. The analysis concludes that townhome projects face more uncertainty and appeal risk—costs that are ultimately passed through to buyers and renters.

Beyond time, the report tallies onsite/offsite infrastructure fees and conditions—from offsite levies and utility upgrades to street use permits, mobility lockers and fire/life-safety requirements—arguing many are not tightly correlated to end-user benefit at the townhome scale. CICBA says “a significant portion” of the townhome burden stems from non-essential policy requirements that could be streamlined without compromising safety or quality.

The association presents a comparative cost chart on a per-unit basis. Using averages with outliers removed, CICBA shows overall regulatory costs per unit are substantially higher for townhome infill than for semi-detached and single-detached infill. While some items are “an essential part of all redevelopment,” the group says a “closer inspection” identifies feasible reductions that would not dilute common building standards.

CICBA stresses that it is not advocating to eliminate oversight. Instead, it calls for “smart adjustments” and “streamlining” so established-area projects can move faster at lower cost, noting that permit application volumes have increased over the past two years, pressuring existing resources. The report contends the pattern—more volume, longer timelines, higher fees—“discourages investment in townhome housing.”

The group sets a time-bound goal: cut the per-unit regulatory burden on townhomes by $100,000 by October 2026. It credits recent collaboration with City Administration and Council for an initial $21,250 per-unit reduction in 2025, leaving “just under $80,000” to find over the next year. In its view, concrete wins are achievable through permanentising temporary fixes, refining approvals, re-examining fee allocations and better aligning conditions to the townhome form.

To sustain progress, CICBA proposes five “necessary shifts”: context-sensitive policy adjustments to rebalance timelines, fees and permits; open collaboration across City, Province and industry on policy, utility and infrastructure barriers; cost-sensitive updates to practices in established communities; ongoing senior-level check-ins and progress reporting; and tiered trust for experienced builders to move proven applicants faster. The association frames the choice starkly: “When it comes to housing affordability, there is no middle ground: we are either part of the solution or part of the problem.”

CICBA’s conclusion: keeping townhomes viable in established areas will require “a greater commitment of resources and leadership” from Council and Administration. The association maintains that quality and safety need not be compromised to deliver more affordable townhomes, and that recent joint work proves targeted reductions are possible without sacrificing livability.