![\"Backyard](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/474eda42532c65080f7fd8de36646045.png\")
Backyard suite <\/p>\n Backyard suite <\/p>\n
Calgary is putting real money behind an idea many homeowners have quietly been considering for years: building a backyard suite.<\/p>\n
If you have aging parents, adult children trying to get on their feet or you are simply looking for a way to add income without selling your home, the timing may matter.<\/p>\n
The City of Calgary has launched a Backyard Suites Incentive Program, backed by funding from the federal Canada\u2019s Housing Accelerator Fund. The program begins March 2, 2026 and offers up to $15,000 toward construction costs, plus 40% of underground servicing costs to a maximum of $20,000.<\/p>\n
There is additional support for heritage homes, projects that require accessibility features and buildings that comply with existing land use bylaws.<\/p>\n
For homeowners who have run the numbers and felt the math did not quite work, this could shift the equation.<\/p>\n
In Calgary\u2019s Brentwood neighbourhood, homeowner Jia Cheng recently completed a 900 square foot, two-bedroom garage suite behind her home.<\/p>\n
\u201cThink of it not as adding units,\u201d Cheng told Global News (1). \u201cYou\u2019re actually changing people\u2019s lives here.\u201d<\/p>\n
Her family first considered the idea during the COVID-19 pandemic when her parents were visiting from China.<\/p>\n
\u201cThere were some frictions,\u201d Cheng said. \u201cMulti-generational living is tricky, but we do want to maintain them \u2014 to have them over, to have the ability to visit family, visit grandkids.\u201d<\/p>\n
The finished suite allows her parents to stay close while maintaining privacy for everyone. It is one example of what city officials say is a growing trend.<\/p>\n
According to the city, there are roughly 400 backyard suites in Calgary. Officials believe that number could rise significantly in the coming years as awareness and financial support increase.<\/p>\n
Josh Howes, manager of the city\u2019s Backyard Suites Program, told Global News interest has grown steadily over the past five years.<\/p>\n
\u201cWe see a lot of family composition, often with somebody in mind\u2026 taking an existing property they don\u2019t want to leave\u2026 and they\u2019re able to stay there because of the backyard suite,\u201d Howes said.<\/p>\n
For families trying to balance care, independence and rising housing costs, that flexibility is often the real value.<\/p>\n
Read more: The ultra-rich are bailing on volatile stocks right now \u2014 these 4 shockproof assets are their new safe havens<\/a><\/p>\n Building a backyard suite is not cheap. Construction costs can run into the hundreds of thousands of dollars depending on size, design and servicing requirements. The city\u2019s incentive will not cover the bulk of the build, but up to $35,000 in potential support can narrow the gap.<\/p>\n Jason Battershill, whose company Garage Suites Calgary built the Cheng family\u2019s suite, told Global News cost is often the biggest barrier.<\/p>\n \u201cWe have a lot of people who approach us, but just don\u2019t have enough money to do them. I think the incentive program is really going to help in a lot of cases,\u201d Battershill said.<\/p>\n He expects recent policy changes and financial incentives could lead to thousands more backyard suites over the next several years.<\/p>\n \u201cOnce the city gets it out there\u2026 people start learning it\u2019s actually available to them, I think it\u2019s just going to be widespread,\u201d he said.<\/p>\n If you\u2019re considering building a backyard suite, there are three main considerations to weigh:<\/p>\n Multigenerational living Rental income Long term property value If you are considering a build, start with the city\u2019s official program page<\/a>, which outlines eligibility and application details.<\/p>\n You can also review information about the federal funding stream behind the initiative through the Canada Mortgage and Housing Corporation<\/a>, which administers the Housing Accelerator Fund.<\/p>\n Before signing any contracts, take time to:<\/p>\n Confirm zoning and land use rules for your property<\/p>\n Obtain detailed cost estimates including servicing and permitting<\/p>\n Review financing options with your lender<\/p>\n Understand tax implications of rental income<\/p>\n Factor in ongoing maintenance and insurance costs<\/p>\n For Cheng, the payoff is measured less in dollars and more in daily life.<\/p>\n \u201cThe best part is that my daughter can go by herself in the mornings, knock on the door, say, \u2018Grandma I miss you, I want a hug\u2026\u2019 and then she gets it,\u201d she said.<\/p>\n If you are weighing rising housing costs against family needs, Calgary\u2019s new incentive may not make the decision easy \u2014 but it does make it more financially possible.<\/p>\n Article sources<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n
A backyard suite can reduce or eliminate the cost of renting separate accommodation for parents or adult children. That can mean shared expenses, lower overall housing costs and potential savings on childcare or elder care.<\/p>\n
If used as a rental, the suite can generate monthly income that helps offset mortgage payments or fund retirement. However, rental income is taxable and financing terms may differ if the property includes a secondary suite. It is worth speaking with your lender and a tax professional before committing.<\/p>\n
Adding a legal secondary suite may increase resale value, but that depends on location, market conditions and buyer demand. It is not guaranteed. Homeowners should review comparable sales and talk to a local real estate professional.<\/p>\n