Downtown Calgary Welcomes 130 Affordable Homes Through Office Conversions

The City of Calgary has announced plans to convert two office buildings into affordable housing, resulting in the creation of 130 new homes downtown. This initiative is part of the city’s ongoing efforts to address housing affordability and reimagine underutilized commercial spaces.

Affordable Housing Through Office Conversions

On Monday, Calgary’s city officials revealed that HomeSpace Society and Trellis Society for Community Impact will lead these office conversion projects. The city has allocated a total of $10.3 million from the federal Housing Accelerator Fund to support these initiatives.

Project Details

• HomeSpace Project: Located at 1000 8th Ave. S.W., this development will cost approximately $27.5 million. It aims to create 65 studio and one-bedroom units and will receive $4.1 million from the fund.
• Trellis Project: Positioned at 441 5th Ave. S.W., this endeavor is estimated at $27.8 million. It will offer 63 units, including studios and three-bedroom apartments, with $6.2 million allocated from the grant. Trellis is partnering with Bluevale Capital Group for this project.

Both developments are included in the Downtown Calgary Development Incentive Program, which aspires to transform six million square feet of underused office space by 2031. Currently, there are 21 ongoing conversion projects, with nine launched last year.

Supporting Community Needs

Calgary Mayor Jeromy Farkas emphasized the significance of these projects. He stated, “Housing affordability is one of the biggest challenges facing our city.” His administration is committed to addressing this issue through innovative solutions and collaboration.

Jeff Dyer, CEO of Trellis, echoed the sentiment, noting that stable housing is crucial for families and young people. He mentioned that the funding received thus far totals $11 million, with hopes for additional support from provincial sources.

Calgary’s Housing Market Context

Calgary’s downtown vacancy rate stands at 30.4% as of the fourth quarter of 2025, according to CBRE Canada. Despite this high rate, Calgary leads Canada in converting office space to residential use, removing nearly half of the nation’s vacant office spaces between 2021 and 2025.

In the previous year, five new residential conversion projects in Calgary’s downtown added 490 homes, including 130 designated as non-market housing. The city approved over 1,800 development permits for non-market homes, indicating a strong commitment to increasing affordable housing opportunities.

Challenges and Future Planning

As Calgary’s city council contemplates revising its blanket rezoning policy, there are concerns regarding the impact of these changes on funding. The Canada Mortgage and Housing Corporation has warned that adjustments to the rezoning policy could jeopardize future financial support. However, city officials have reassured that current funding is secure.

Calgary continues to prioritize housing affordability, with a strategy encompassing 98 actionable items aimed at addressing this critical issue. With ongoing projects and community support, the city is taking significant steps towards enhancing its residential landscape.