In defence of the greedy developers!
Full disclosure: I have not been paid or in any way incentivized by any developer to write this column. I have only been paid once or twice by a developer to write a piece for their website or advertorial - and that was decades ago.
Yes, many of Calgary’s developers are wealthy and it may look like they are greedy, but they are no different than anybody who is at the top of their game, be that athletes, corporate CEOs, actors and musicians. In fact, they have probably had to work harder and taken more financial risks that most of us would ever do.
Drive along 19th Street NW from 17th Ave to 24th Ave and almost every corner has been converted from a single family home to a multiple townhomes.
Taking all the risks
Large suburban developers typically have 100s of millions of dollars (theirs and investors) tied up in land purchases, as well as design and approval costs for 10+ years before they get approvals to subdivide the land and sell lots. And it takes another 10 to15 years before the new community is completed and they get fully paid out.
The same is true for infill developers who must buy their potential development sites from homeowners with the hope they can get the city and community on-side, all the while paying interest on the purchase and spending millions more on design and approval fees.
The housing sector is one of Calgary’s key economic engines, fueled by the money developers and their investors investing back into the community which creates the majority of the 85,000+ construction jobs in Calgary. On top of that, their investment has created 10,000+ more jobs for architectural and landscaping firms as well as marketing and communication firms.
It should also be noted that wealthy developers have generously donated back 100s of millions of dollars over the past 25+ years (individually and corporately) to help foster Calgary as one of the best places in the world to live - be it United Way, hospitals or post-secondary schools (annual and capital campaigns) or other worthwhile causes. And yes, they are creating 100s of homes and jobs for low income Calgarians in partnership with various not-for-profits each year.
Home buyers are the greedy ones!
While some blame the developers for Calgary’s suburban sprawl, in fact it is the home buyer who is to blame. Developers build what they think they can sell. They spend millions each year evaluating Calgary’s home buyer market and then build accordingly. While some criticize developers for building cheap-looking, cookie-cutter homes, the reality is developers build what people want and can afford.
Most Calgary buyers want the biggest house they can afford for the cheapest price (aka greedy), which means constantly creating new communities in the suburbs where not only the land cheaper, but the cost to build and get approvals is less expensive. The cost per square foot of a home is always cheaper in the suburbs.
While some blame the so-called greedy developers for the smaller lots in new suburban communities today vs. those built in the middle to late 20th century, they are misinformed. It’s the density-loving planners, politicians and environmentalists who are to blame for the increased density of new suburbs. They are the missionaries making us feel like sinners for wanting to live in a big home with a front and backyard and we are all going to “climate change hell” it we don’t stop.
And don’t blame the so-called greedy developer for the increased housing cost either. They are just passing on the cost of changes in the building code and other costs the government mandates them to pay. I love when inner-city urbanists say, “make the developer pay more for the infrastructure cost for new suburbs,” which really means make the suburban homebuyer pay more. How quickly they forget their established communities were once new suburbs and their infrastructure costs were paid for by the city-at-large taxpayers.
Also, when it comes to selling your home, who doesn’t want the highest price they can get – greedy homeowners? When the cost to purchase older homes in established communities goes up, so does the cost of the infills that replace them. Don’t blame the infill developer for the fact new infill duplexes in established communities sell for almost a million dollars blame as the cost to by a site with an old home is now $750,000+.
FYI: Also don’t blame the Boomer selling the site for being greedy because they sold the site for what looks like a huge profit. If you consider the cost of mortgage payments, taxes and renovation over say 40+ years, the profit isn’t as large as it looks.
Across Calgary, more density is being added in older communities. It comes in all shapes and sizes and from market to affordable housing.
Last Word
The homebuyer has been – and will continue to be - responsible for shaping our city, not the developer. Developers build what buyers wants and what the city mandates.
And it is largely the homebuyer who drives up the cost of housing, wanting as big a house with as many bells and whistles as their bank will finance. Yes, the average single family home has grown from 850 square feet in the late ‘50s to around 2,000 square feet today.
Perhaps we are all greedy – the homeowner sells to the highest bidder. The developer who builds the biggest house with the highest return. The city who loves the extra tax revenue it will get with the increased residential density with smaller lots in the suburbs, more multi-family buildings and infill housing in established neighbourhoods. Oh, and the bankers who happily lend homebuyers the biggest mortgage, they can qualify for at the highest interest rate allowed.
Perhaps we all need to look in the mirror to see who is the greedy one!
Note: An edited version of this blog was published in the Calgary Herald’s New Homes+Condos section on March 8th, 2025.