We get asked all the time just how much value a garage suite adds to your property in Calgary. These questions stem mainly from the curiosity of homeowners and/or investors who want to know how a backyard suite’s financial costs compare to its benefits.
For example, if you built a $275,000 backyard suite, how much higher could your annual property tax bill be? Another way to look at it – and often a more common viewpoint from many of our clients building backyard suites – is just how much of the suite’s cost will be “stowed” on your property, while you gain the benefits of its use for years to come.
We’ve been building laneway homes in Calgary for several years and have developed relationships with many industry-related professionals. One of those is Laura Christie, an experienced REALTOR® with CIR Realty who has a passion for backyard suite builds and the benefits they offer to Calgarians.
Laura presented her research on the value of a backyard suite in Calgary a little while back. Below, we share some key notes from her PowerPoint, which can also be downloaded here for your review.
Key Findings from Laurie Christie’s Analysis
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#1 – Resale Value Goes Up, But So Do Tax Assessments
According to Laura, the resale value of a home with a backyard suite in Calgary is anywhere between 10% to 25% over a comparable property without. But the real value of a suite is the benefit it offers by offsetting mortgage costs or when using it as a secondary source of income.
Tax assessments on the value of your entire home typically go up by anywhere from $100,000 to $200,000 according to Laura, which will also increase your annual property tax bill.
Courtesy of Laura Christie
So, let’s say you built a garage suite and your property was valued at $600,000 in 2024. With a total tax rate of 0.0061803 in 2025, (or 0.61803%), let’s say the value of your property is now $725,000 with the suite. You’ll be paying about $800 more per year for property tax.
#2 – Selling: Before & After Suite Construction
Laura looked at properties on the MLS® that sold before and after suite construction. She found that the same property, depending on several factors, sold for anywhere between $74,500 to $275,000 or more after building a backyard suite.
Courtesy of Laura Christie
With our current prices, this means you could retain anywhere from about 30% to 90% or more of the cost of a suite on your property’s value.
So, if your home is in a sought-after neighbourhood or part of the city, it is likely to retain more value. This boost in value is also determined by other factors that would make your property more or less appealing to potential homebuyers on the resale residential market.
Backyard Suites are Ideal for Investors
By adding to the value of your property with a backyard suite, the opportunity for investors looking to generate cash income is huge. We have many clients who have looked to garage suite builds as a way to supplement their retirement. Sure, the initial cost to build the suite is there, but some of that cost is “stowed” away onto your lot to be reclaimed at a later date when it’s time to liquidate.
This value-adding, cash-generating proposition is why backyard suites are so attractive to investors; some of the initial cost is negated by the value-add to the property, while the suite then generates cash over time that also pays off the initial investment no matter your financing arrangement.
Why Adding a Garage Suite is Worth the Investment in Calgary
Building a garage suite requires an upfront investment (typically starting at $215,000-$294,500 as of April 2025), but the long-term returns on property value and usability make it a smart decision for many homeowners.
If you’re curious about the possibility of a backyard suite build for your lot, don’t hesitate to contact us anytime at 403-797-4918 or send us an email at [email protected]. We look forward to connecting with you!
