The Strathcona neighbourhood in Edmonton, on Jan. 21.Megan Albu/The Globe and Mail
Since 2016, Andrew Binne has lived in Edmonton’s Strathcona neighbourhood, in the city’s bustling south central area, where he rents a one-bedroom-plus-den apartment in a three-storey building.
Living by the Saskatchewan River valley, in a 15-minute neighbourhood close to the services and amenities Edmonton’s famous Whyte Avenue offers has allowed Mr. Binne to forgo car ownership and improve his quality of life.
“I see myself staying here for the long term,” he says. “I have no desire to go anywhere else. It’s just vibrant, it’s got a lot going on, and it’s very walkable – which is what I love about it.”
To enable equitable access to such a lifestyle across the city, Edmonton city council approved a new land-use bylaw in October, and on Jan. 1 it came into effect.
Strathcona has many high-density apartments and condos.Megan Albu/The Globe and Mail
One of the most significant (and controversial) changes introduced by the new document is a shift of the as-of-right zoning of single lots in residential areas to allow for multi-family dwellings of up to three storeys, as well as townhouses and row houses across the city.
Robert Summers, an urban planning professor and director of the University of Alberta’s School of Urban and Regional Planning, explains that by allowing more dwelling types as-of-right, the new bylaw expedites the redevelopment process, facilitating denser development across all of Edmonton’s mature neighbourhoods. “For the people who are in the business of building buildings and developing land, time is a big issue, because it affects their ability to profit.”
In 2023, roughly 20 per cent of all multifamily construction in Edmonton was concentrated in Strathcona, Garneau and Oliver, where 938 apartments were completed and 1,474 are currently under construction.
The reason for this could be related to the fact that these neighbourhoods already allowed for higher densities as of right.
Megan Albu/The Globe and Mail
In 2023, roughly 20 per cent of all multifamily construction in Edmonton was concentrated in Strathcona, Garneau and Oliver, where 938 apartments were completed and 1,474 are currently under construction.Megan Albu/The Globe and Mail
“About 10 per cent of the city’s mature neighbourhoods already had this zoning, and it already allowed for three-storey apartments,” says Christian Lee, a senior planner at the City of Edmonton’s zoning bylaw team.
“So what’s occurred with this new bylaw is that we’ve expanded the application of that zone, and we have increased the allowable height a little bit.”
But zoning isn’t the only driver of development.
According to Ray Wong, vice-president of data solutions at Altus Group, buyer preferences, as well as interest rates, play a significant role in determining what gets built where – and when.
“With townhouses and apartments, the challenge is that the buyer pool at this point is still sidelined by high interest rates,” he says, noting that a lack of certainty on whether inventory will move makes it difficult for developers to justify new construction.
Megan Albu/The Globe and Mail
Since the new zoning bylaw was approved in October, city planners noticed an increase in developer interest.Megan Albu/The Globe and Mail
In 2023, the resale value of both row houses and apartments in Edmonton increased by roughly 7 per cent; reaching $240,200 for the former and $181,400 for the latter. However, the city’s house price index is in a downward trend.
“From a zoning standpoint, property values will potentially go up because you can build more, and get a higher return,” Mr. Wong says. “But as a way of bringing new supply, that’s going to take some time.”
Indeed, since the new zoning bylaw was approved in October, city planners noticed an increase in developer interest, but the proof will be in the pudding.
“Right now it’s too early for us to have any meaningful data to identify any trends,” Mr. Lee says. “But, anecdotally, we can tell you there definitely is interest, it’s just really how many [applications] will actually convert into building permits and actual construction.”
City administrators will report back to council on the outcomes of this bylaw in the second quarter of 2025, when further adjustments could be implemented.
Megan Albu/The Globe and Mail
'In Edmonton we’ve got lots of old main streets, [but] they are not vibrant compared to some other cities,' Prof. Robert Summer says.Megan Albu/The Globe and Mail
“We expect to continue to improve it as we get more data, as we get testimonies and lived experiences,” Mr. Lee says. “We’ll continue to move toward allowing our city to become a more equitable one.”
In the long term, the new bylaw is expected to expand the range of housing choices available to Edmontonians in a given neighbourhood, Prof. Summer says, adding that denser neighbourhoods are also more affordable, more efficient and more vibrant.
“In Edmonton we’ve got lots of old main streets, [but] they are not vibrant compared to some other cities,” he says. “If we have more people living around them and simply walking down the street to get groceries, or food, or coffee, that adds to the vibrancy of the city as well.”
Megan Albu/The Globe and Mail
When interest rates stabilize, single-family properties in mature neighbourhoods are likely to experience an increase in value, and potentially displace some tenants.Megan Albu/The Globe and Mail
In the meantime, changes will be few and far between. “Most Edmontonians won’t notice any change at all,” Prof. Summers adds. “The people who might start to see a bit of change are those who live in high-demand areas.”
When interest rates stabilize, single-family properties in mature neighbourhoods are likely to experience an increase in value, and potentially displace some tenants. But in a city where rental rates for listed units increased by 25 per cent in 2023, removing barriers to the expansion of the city’s housing stock is perceived as a net positive.
“Generally, across the city, this will help keep things affordable, it’ll prevent a rise in overall housing costs,” Prof. Summers says, recognizing that while some individuals in desirable areas could be affected negatively. “It’s up to the city to consider what works best for society as a whole, and that’s to provide a broader number of units in the area.”
Editor’s note: A previous version of this article incorrectly described the location of Edmonton's Strathcona neighbourhood. This version has been updated.