Calgary bedroom communities take different approach to housing: study

Two Calgary bedroom communities are taking very different approaches to housing construction, according to a new report from UCalgary’s School of Public Policy.

Cochrane and Okotoks, less than an hour from the city’s bustling cores, each had a population around 32,000 people in 2021, and both have an median resident age of 39.2 years, according to the report.

The median income in Cochrane is $127,000 slightly lower than Okotoks’ $130,000.

A good amount of residents in the two communities commute to Calgary for work — with the School of Public Policy reporting 25 to 33 per cent of workers in each town drive into the city for their job.

Despite all these similarities, there is a distinct difference between the two Calgary adjacent towns — the cost of housing.

Over the last 10 years, data shows homes in Cochrane have stayed around $40,000 cheaper than Okotoks, on average.

The report concludes that because the two towns are so similar, it’s unlikely that external factors are responsible for the significant difference.

It’s also unlikely that demand is the reason for the disparity, according to the report, as Cochrane has a higher annual growth at six per cent compared to Okotoks’ two per cent.

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The difference, instead, can be explained by a difference in municipal policy, the publication says.

Over the last 10 years, Cochrane built triple the amount of housing Okotoks did and, on average, issues five residential building permits for every two issued in the town to the south.

The variety of housing in Cochrane is also greater, the report states — multi-family dwellings represented approximately 46 per cent of new housing starts compared to 16 per cent in Okotoks.

Further, the research indicates all levels of government have a role in the construction and cost of housing — all contribute in the form of fees and taxes leveraged against new housing, it adds.

While the federal government and all provinces set their own building codes and require their own approval process, provinces regulate land use, including agreements that restrict future changes to the property, and they often fund infrastructure or public amenities in new communities.

However, municipal governments are thought to hold the greatest influence on housing costs in their communities through zoning regulations. These regulations determine the type of housing that can be built, and building permits, which impact construction timelines and costs of housing that are non-material.

Canada hit 40 million people this summer and the report states Calgary is the fastest-growing city in the country, with a population of more than one million people.

More people moving to Calgary, and Alberta, puts further strain on the housing supply and may force local policymakers to make changes on how housing is approved, the report says.

Calgary’s permitting rates are currently in line with those in Okotoks “but Cochrane provides an example that policymakers may choose to follow,” it adds.