2 days Ago By Richard White
Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page. 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.
Interested in more newsletters? Browse here. Large suburban developers typically have hundreds of millions of dollars (theirs and investors) tied up in land purchases, as well as design and approval costs for 10-plus years before they get approvals to subdivide the land and sell lots. And it takes another 10 to 15 years before the new community is completed and they are 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 onside, 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, fuelled by the money developers and their investors investing back into the community, which creates the majority of the 85,000-plus 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 hundreds of millions of dollars over the past 25-plus 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 hundreds of homes and jobs for low-income Calgarians in partnership with various not-for-profits each year. While some blame the developers for Calgary’s suburban sprawl, in fact it is the homebuyer 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..
