Non-owner occupancy is when the owner of a particular property or unit within a housing complex does not reside on the property or does not consider the property as their main residence. Non-owner-occupancy can include short-term rentals, empty lots of land, or commercial real estate spaces like offices buildings not fully utilized.

 

Short-term Rentals

Definition:

Short-term rentals are furnished homes, apartments or rooms rented out for fewer than 30-days often through platforms like Airbnb or Vrbo.

Why are we talking about this for Calgary?

Short-term rentals can inflate a city’s occupancy rate on paper without truly addressing the housing needs of local residents. When units are listed as “occupied” due to short-term stays, it gives the impression that housing in the area is being utilized efficiently.  In reality, these spaces are taken up by tourists, temporary citizens, or sitting vacant between bookings; this is a particular phenomenon in downtown Calgary especially following major events like the Calgary Stampede. While short-term rentals are a great revenue stream for people who can afford to own multiple units or pieces of land, they tend to prioritize tourism and revenue over the needs of people who live and work in the city – arguably the demographic who should be the higher priority.

One of the difficulties of short-term rentals is that the most desirable rentals for short-term stays align with the most desirable living areas for Calgarians due to accessibility of transportation, high-density of hospitality services, and tourist attractions. Converting housing into short-term rentals removes valuable housing stock from the market, reducing options for all income levels, ultimately contributing to reduced supply. It also skews data used for urban planning and creates a false sense of housing availability and overall stability, all while essential resources like public transportation, waste management, and emergency services bear the strain of increased public use for a population who doesn’t support this infrastructure through taxes, volunteering, or engagement because they don’t live here long-term.

Short-term rentals also impact the sense of community in Calgary. As fewer locals live in the neighbourhood and more properties are purchased for short-term use, areas lose long-term residents and, with them, the connections that create strong, vibrant communities. Local events see lower turnout, community initiatives like artist markets, charitable events neighbour-day parties struggle to get support, multi-generational homes are created out of necessity not culture, and individuals feel increasingly isolated from neighbours. When short-term rentals flood the market, it weakens the everyday interactions and shared experiences that help neighborhoods thrive.

Where in the housing puzzle do short-term rentals fit?

Short-term rentals create no real opportunity to address the growing demand for housing because they’re not part of the long-term rental market. While these units exist physically, they remain unavailable to people who live and work in the city and who are actively looking for stable, permanent housing, for connection, and community. Instead of helping reduce the housing crisis, they remove viable living spaces from circulation, effectively making no dent in local demand.

Research conducted in the City of Calgary showed that while rentals can sometimes offer short-term relief for those waiting to find the right housing, most of the positive feedback from the research came from rental hosts with many praising the income they generate rather than reviewing any housing metric. It’s also important to note that the demand for short-term rentals largely reflects a gap in long-term housing supply. If more affordable and accessible long-term housing options were available, the reliance on short-term rentals as a stopgap solution would be significantly reduced.

 

Land Banking

Definition:

Land banking refers to land purchased but held for a long period of time before further sale or development.

 Why are we talking about this in Calgary?

Empty lots in urban areas often represent missed opportunities to address pressing community needs. Rather than being developed into affordable housing, public parks, or essential services, these spaces are frequently held or sold for investment purposes waiting for the “right” commercial buyer or high-profit development. This approach prioritizes financial gain over the well-being of communities in urgent need of housing, green space, or public infrastructure. Decisions to leave lots vacant in hopes of future profit highlights a system that values investment returns more than livability and inclusion. Without requiring clear proposals on how the land will be developed, these lots create long-term delays that both waste valuable space and hamper efforts to create needed services and infrastructure for more livable, inclusive neighborhoods.

Where in the housing puzzle does land banking fit?

Land banking in Calgary represents a critical, yet often overlooked, piece of the housing puzzle. These spaces have the potential to support new developments whether it’s affordable housing, mixed-use buildings, or community resources. However, when left vacant or reserved for long-term investment, they effectively withhold land that could otherwise help ease housing shortages. In a city where land availability directly influences housing supply, the fate of these empty lots plays a significant role in determining how quickly and effectively Calgary can respond to growing demand, population growth, and affordability challenges.

The solution to empty lots lies in purposeful development. If lots remain empty due to legitimate delays such as waiting on permits, supply chain issues, or necessary community consultations this too is helpful information that tells us the focus should be on addressing these obstacles and being transparent with citizens about what’s being done to address these barriers. This could include streamlining permitting processes, providing incentives to fast-track projects, and adjusting timelines for community consultations. Ultimately, development only reaches its full potential when it is guided by clear, community-driven planning and prioritizes local needs over speculative profit.

 

Unused spaces

Definition:

Unused Spaces can include unused office spaces, buildings, lots, or units that sit vacant for long periods, often held for investment or future development rather than being actively lived in or used.

Why are we talking about this for Calgary?

Unused office spaces remain an ongoing issue in downtown Calgary. One notable example is the Lougheed Building, a historic six-storey structure completed in 1912. Originally designed as a mixed-use commercial building, it housed offices, retail spaces, and the Sherman Grand Theatre. Over time, the building fell into disrepair and remained largely vacant. In recent years, efforts have been made to restore and modernize the heritage building, aiming to bring new life to this iconic piece of Calgary’s architectural history. The revitalization seeks to transform the Lougheed Building into a vibrant office and retail destination, contributing to the ongoing efforts to address the city’s downtown vacancy challenges.

Calgary’s downtown core has a surplus of office space, much of it built during the boom years of the energy sector. That surplus is one of the main contributors to the current vacancy rates. Other factors include the downturn in the oil and gas industry and the rise of remote work accelerated by the COVID-19 pandemic which reduced the demand for traditional office environments.

The Bow, once a symbol of growth, sat partially empty for years and even Telus Sky, a newer development, is not fully occupied due to the effects of the pandemic. The old Telus building was demolished to make room for it, but the focus remains on aesthetics rather than functionality. This imbalance makes it harder for workers to live near their jobs, pushing them to the suburbs and contributing to traffic congestion, inflated housing costs, and a downtown core that feels increasingly out of reach for everyday Calgarians.

Where in the housing puzzle do unused spaces fit?

The City of Calgary has committed to taking “bold action” to revitalize the downtown core, with a plan focused on creating a balanced mix of residential, office, retail, entertainment, tourism, and cultural spaces. This includes streamlining permitting processes to encourage redevelopment, offering incentives for private developers to invest in underutilized properties, implementing redevelopment plans that prioritize vibrancy and accessibility, and introducing rules to limit foreign ownership in residential properties to ensure housing is available for locals.

The Downtown Office Demolition Incentive Program, the Calgary Development Incentive Program, the Plus 15 Fund Offset Program, the Density Bonusing Offset Program, and office-to-residential conversion projects are also helping address housing challenges in the downtown core. These programs aim to repurpose vacant or underused office buildings into much needed residential spaces. Older buildings that have reached the end of their lifespan and are no longer safe or functional are slated for demolition. For example, structures along the 600 block of Fourth Avenue are being removed to make way for new housing developments, turning underutilized space into opportunities for revitalization.

Check out the rest of the content on our Vote Housing page (https://alphahousecalgary.com/votehousing ), because we have a lot of great information and commentary about housing in Calgary.