A new industry study has revealed a staggering increase in government-imposed fees on new developments in Calgary, a hidden cost that experts warn is contributing to the city's housing affordability challenges. While these charges fund crucial public infrastructure, their rapid growth is adding significant financial pressure to builders and, ultimately, to the cost of new homes.
Fees Soar Across Canadian Markets
The analysis, commissioned by the Commercial Real Estate Development Association (NAIOP) and conducted by Keleher Planning and Economic Consulting Inc., paints a dramatic picture of rising costs. In Calgary, the average government charge per new housing unit exploded by 536%, climbing from $1,464 in 2010 to $9,306 in 2025.
This increase, however, is not isolated to Alberta. Edmonton experienced an even higher percentage jump of 628%, though the dollar figure reached $7,369 per unit. These rises are substantial, yet they pale in comparison to the fees levied in Canada's largest and most expensive housing markets.
Calgary's Costs in National Context
Despite the sharp percentage increases, Calgary's fees remain far below those in Toronto and Vancouver. In Toronto, fees grew 472% over 15 years, but the current average cost per unit is a staggering $119,910. Vancouver saw a 290% increase, with fees now averaging $73,772 per unit.
Daryl Keleher, principal at Keleher Planning and author of the report, notes that while Calgary's fees are lower, they still impact project viability. "It certainly cuts the profitability of projects," Keleher stated. He emphasized that in some municipalities, exorbitant fees can completely halt new housing supply. "Some projects are killed before they start because of the high fee costs," he explained.
Impact on Housing Supply and Affordability
The NAIOP commissioned the study to shed light on these often-overlooked expenses during a national affordability crisis. Alex Thomson, NAIOP chair for North America based in Edmonton, connected the fee issue directly to consumer concerns. "You get in an Uber and the driver is talking about how expensive it is," Thomson said, highlighting housing costs as a primary worry.
This sentiment is echoed in broader surveys. Patrick Smith, vice-president of real estate secured lending at TD, pointed out that affordability remains a significant challenge as prices continue to rise in municipalities like Edmonton. A recent TD survey indicated that Albertans are growing less confident in their ability to afford their homes and mortgages.
The report underscores a complex balancing act for municipal governments: funding the infrastructure needed to support growth through development fees, while ensuring those same fees do not stifle the creation of new housing that is desperately needed to improve affordability for all residents.
