November 4, 2016

New U of L study finds water issues a major concern of housing developers in the Calgary region

The final report of a study investigating challenges and solutions in acquiring water for housing development in the Calgary provides some insights into this critical issue.

Principal investigator, Dr. Lorraine Nicol of the University of Lethbridge issued the final report after analysing the findings from interviews with 15 major developers working in Rocky View County, M.D. Foothills and/or Okotoks. Challenges in acquiring water have housing developers in the Calgary region worried about the effects on their industry and real estate, on home buyers and the economy in general.

The study found:

  • 100% of developers interviewed believe there are challenges in acquiring licensed water allocations for housing development in the three municipalities under study;
  • 73% stated acquiring a licensed water allocation is the ‘primary issue’ for developers;
  • 60% of interviewees believe water management in the region is political, to the detriment of the housing industry;
  • another 53% believe the source of the problem also relates to government processes;
  • 87% of developers believe water challenges are having a negative effect on the industry, either now or in the future;
  • two-thirds of developers say the cost of acquiring water licenses increases the price of homes;
  • on average, approximately 200 homes sold yearly in the three municipalities under study comprised the resale of new homes. A 10% decline in houses constructed, by reducing the stock of homes, could translate in a decline of 20 houses hold; a 20% decline in new home construction could translate in a decline of 40 homes sold;

All developers believe a solution lies in working together as a region but there was no clear consensus on what type of regional model will work.

For more information about this study, visit the University of Lethbridge’s website here or Alberta WaterPortal’s Blog here.

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