City of Calgary announces initiative to provide financial support for homeowners to build backyard suites

Applicants can get up to $35,000 to build new residential spaces on their properties.

The City of Calgary is launching a new incentive program designed to make it easier for Calgarians to build backyard suites.

Starting March 2, the program will offer up to $15,000 to support general construction costs, as well as up to 40 per cent of underground infrastructure costs to a maximum of $20,000 when both onsite and offsite connections are required.

“The housing strategy for the City of Calgary Outcome one of five is really to increase the supply,” said City of Calgary Suites Program Manager Josh Howes. “Backyard suites clearly fill that void.”

Additional funding is available for work related to accessibility features, properties designated as heritage and projects that meet the requirements of the Land Use Bylaw.

The initiative comes after an online study conducted in the fall of 2025 found 88 per cent of respondents -- nearly 700 -- said they were interested in building a backyard suite. The Suites Program has a goal of getting at least 200 backyard suites built in the city.

“We heard from hundreds of Calgarians who want to add one of these suites to their properties. For many, it’s a lifestyle choice. We are making room for homes that offer flexible solutions for families who want to grow in place with aging parents, young adult children, a nanny or build with the intended purpose of renting,” said Josh Howes the city’s backyard suites program manager .

The city said in a release applications will reviewed on a first-come, first -served basis and that funding is limited.

“Backyard suites are one of Calgary’s most underused housing options, and this program will remove some of the barriers,” said Reid Hendry, the city’s chief housing officer. “The addition of more backyard suites will contribute to a more diverse housing market, improving housing choice and affordability for Calgarians.”

Backyard Suite Owner

Jia Cheng added a secondary suite on top of her Brentwood home in September 2025.

“My parents are using this one as kind of like there visiting home,” said Cheng.

Cheng’s parents are from China and so are her partners. The two bedroom suite allows both sets of parents to come and, helping out with their grandchildren.

“It was kind of an idea brewing since COVID because you know everyone was locked down and everyone was together and that of course creates friction,” said Cheng. “We do want the multigenerational living to work.”

Cheung and her partner hired Garage Suites to construct the unit which cost them $310,000. The company began to see a strong demand for the construction of these types of units five years ago.

“They were very popular in Edmonton and Vancouver, and we were kind of scratching our heads saying, you know, nobody really specializes in this product here,” said Jason Battershill, the director of sales and marketing with Garage Suites.

In addition to people looking to add the units for family and friends to stay in they have become popular for homeowners looking to generate income.

“Although the costs are higher, you will see, higher long-term appreciation for a backyard suite. They also provide more privacy,” said Battershill. “You get a lot of landlords with tenants who prefer garage suites, because there is no attached walls or common walls versus a condominium.”

Costs range in price from $200,000 to over $300,0000. The company has completed 60 over the past five years.

For more information about how to apply for the Backyard Suite Incentive Program, go here.