New low-cost residential building to arise amid projections of more renters entering ownership soon
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The federal government has announced its investment into a new affordable housing complex in Calgary, slated to begin construction soon.
The Canada Mortgage and Housing Corporation stated earlier this week that a $9.77-million tranche will serve as funding for the structure to be built at 9 Street S.W. and 5 Avenue S.W.
Meanwhile, the site was provided by the City of Calgary through the municipal government’s sale program for non-profit land.
“This site, at a discount valued at $3.8 million, is one of six initial properties sold through the program, which altogether will provide an additional 160 units committed to affordable housing for 40 years,” CMHC added.
The apartment complex will be offering 74 low-cost units, aimed particularly at the needs of homeless and at-risk individuals, according to an Alberta-based affordable/specialized housing organization.
“From a location point of view, we’ll be providing housing for vulnerable populations in the heart of downtown where they can easily access services,” HomeSpace Society CEO Bernadette Majdell told Global News.
HomeSpace projected the building to begin operations by fall 2020.
Earlier this month, the Royal LePage House Price Survey revealed that Calgary is likely to see more renters enter home ownership very soon, amid an abundance of affordable options.
“Although our resale market is still challenged, rental vacancy rates are low, and rent is expected to go up 4% this year. This may contribute to more renters deciding to become homeowners instead, and specifically condominiums,” Royal LePage Benchmark broker and owner Corinne Lyall said.
“We see this is already happening in the condo market and is expected to continue.”
During the first quarter of the year, Calgary’s condo unit prices ticked up by just 0.2% annually to reach a median price of $286,453. Two-storey home values went down by 0.9% during the same period to end up at $513,616, while bungalow prices fell further by 3.7% to reach $490,170.
The city’s aggregate home price dropped by 1.5% year-over-year, down to $468,974.
