Addressing Alberta’s Housing and Climate Crises Together

Mobilizing Alberta is an initiative aimed at increasing engagement on climate change across Southern Alberta. Through Climate Action Grants, a Climate Conversation Speaker Series, and the Preparing Albertans for Climate Change e-course, Mobilizing Alberta provides a foundation on which Albertans can build awareness and support meaningful climate action. This series of informative blog posts answer frequently asked questions, clear up common misconceptions, and break down climate solutions in a straightforward, easy-to-understand way.

There’s a housing crisis in Canada that is affecting millions of people. The country could face a shortage of 3.5 million housing units by 2030, if things don’t quickly change. The Canada Mortgage and Housing Corporation (CMHC) estimates Canada’s housing stock needs to increase by 30% in order to meet its housing affordability targets.

Simply put: we need more homes. And we need them quickly. Canada must fast-track construction as much as possible to build them.

At the same time, Canada is also working toward ambitious climate targets: a net-zero electricity grid by 2035 and a fully decarbonized economy by 2050. This means every new home we build must be designed with energy efficiency and climate resilience in mind, or we risk locking in decades of higher emissions, rising energy bills, and costly retrofits. Meeting the housing crisis and the climate crisis together is an opportunity to build communities that are affordable, sustainable, and future-ready.

Alberta’s housing shortage

Alberta has a shortage of affordable homes. In spite of record housing starts, demand continues to outpace supply, and costs continue to rise. In Calgary, where ownership costs take up 42.5% of income, housing puts significant financial stress on residents. As of February 2024, more than 110,000 low-income Albertans lived in affordable housing and there were about 18,500 households on the waitlist.

To address the shortage of affordable housing, the Alberta government launched the Stronger Foundations 10-year strategy, which aims to add 25,000 new affordable housing units by 2031, increasing the number of households served by 40%. At the municipal level, cities like Calgary  have adopted comprehensive housing strategies that include land sales at reduced cost for affordable housing, new tax exemptions for non-profit providers, and programs to support equity-deserving groups, including Indigenous-led housing initiatives.

Why does climate-resilient housing matter?

Albertans already face high housing costs, but climate change could push those costs even higher. People who live in housing that is not designed to withstand the extreme weather that comes with climate change — more frequent floods, wildfires, and severe storms — will face higher repair costs, lost property, or risk losing their home altogether.

In Alberta, average annual insurable losses have increased by 400% between 2014 and 2024, and home insurance premiums have risen by 90%. The wildfires that devastated Jasper in the summer of 2024 have reportedly cost over $880 million in insured losses. Catastrophe Indices and Quantification Inc. (CatIQ) estimates Calgary’s August 2024 hailstorm cost $3.25 billion. This record-breaking storm resulted in 130,000 insurance claims and is the second-costliest disaster in Canadian history for insured losses.

The costs of these extreme weather events and natural disasters reach beyond the homeowners to all Canadians. All orders of government, and by extension, taxpayers, are on the hook for billions of dollars in repairs and disaster relief. We all pay climbing insurance premiums, as insurers aim to recoup the costs of claims for damaged buildings. Siding, windows, roofs, and even foundations need to be replaced with more climate-resilient materials, and repairs after flooding or fire can cost tens of thousands of dollars per property.

As part of Canada’s ongoing commitment to reducing greenhouse gas (GHG) emissions and achieving net-zero carbon goals by 2050, the federal government has significantly reinforced building regulations related to environmental performance. National and provincial governments have implemented more stringent energy efficiency regulations and performance-based standards through changes to legislation and updates to building codes.

Building codes, rebates, and other incentives influence what’s available and affordable, which in turn affects the choices consumers will make. Building codes set the minimum standards for energy efficiency and structural resilience in new housing. As of May 2024, homes built or renovated in Alberta must meet the National Building Code - 2023 Alberta Edition, which introduced updated energy efficiency requirements including better insulation, airtightness testing, higher furnace efficiency standards, improved window and door specifications, and mandatory radon safety measures. The code is also designed to help builders and homeowners exceed the code and work toward net-zero housing goals.

The Calgary Housing Strategy (Home is Here) and the Calgary Climate Implementation Plan both aim to address housing affordability and climate resiliency through integrated approaches to planning and building. The Housing Strategy focuses on increasing housing types and densities in communities, and includes both market and non-market housing. The Climate Plan aims to create more resilient buildings and neighborhoods through climate-informed land use and urban design.

Both strategies rely on upgrading existing buildings to net-zero and climate-resilient standards. These upgrades are a key part of the Climate Implementation Plan’s commitment to driving down Calgary’s emissions from homes and buildings. For consumers, this means more new homes will be energy efficient, and existing homeowners will have better financing and rebate options to make upgrades more affordable. The Housing Strategy focuses on increasing housing supply, choice, and affordability across the city. This includes zoning changes to allow secondary suites, infill housing, and mixed-use development. These changes allow more compact, energy-efficient housing options to be built, which will give Calgarians more affordable rental and ownership options, often with smaller, more efficient units that are cheaper to heat and cool.

The federal government has also made housing affordability and access a priority. Build Canada Homes, launched in 2025, is a new federal agency designed to supercharge affordable home construction nationwide. The agency’s goal is to deliver 500,000 new homes annually, largely on public lands, with a strong focus on deeply affordable non-market housing and “innovative, factory-built housing.”

While broader policies surrounding housing and climate affect our options, there are still choices we can make at an individual level that can help mitigate the effects of climate change. Some of these changes are large investments, but others are smaller improvements that can make our homes more comfortable, save us money, and reduce our emissions.

If you’re buying a home:

• Weigh the up-front cost against long-term costs. A new home built to higher efficiency standards might seem more expensive at first, but lower energy bills and a higher resale value make it more affordable over time.
• Location matters. Buying in an area less exposed to hail, flooding or wildfire risk can reduce insurance costs and future disruption.

If you’re renovating or retrofitting your home:

• Renovations can offer Albertans who live in older homes a chance to add value and climate resilience. Retrofits go deeper than basic renovations, and often include whole-home energy upgrades designed to dramatically reduce energy consumption and emissions.
• A deep retrofit might include new siding with added insulation, triple-pane windows, an airtight building envelope, and solar panels. It could also include replacing a furnace with a high-efficiency heat pump, or adding better ventilation to improve air quality during wildfire season.
• Some retrofits are eligible for incentives or financing programs, such as the Residential Clean Energy Improvement Program (CEIP) offered by Calgary and other municipalities.

If you’re renting your home:

• You can take simple steps to improve efficiency and comfort with draft stoppers, blackout curtains, or portable air filters.
• Energy-saving choices, such as LED lighting, smart thermostats where possible, and using appliances efficiently can help cut your utility bills.

Learn more about the other upgrades and improvements you can make to help your home become more climate resilient, regardless of your budget.