Can I Build a Garage with a Suite on My Property in Calgary?

As Calgary’s housing market becomes more competitive and the
demand for creative housing solutions rises, many homeowners are
asking: Can I build a garage with a suite on my property in Calgary?
The short answer is yes — in many cases, you can. But before swinging
a hammer or calling a builder, it’s important to understand the rules,
costs, timelines, and opportunities that come with garage suites, also
known as carriage houses, coach houses, or backyard suites.
This blog breaks it all down for you, covering everything from zoning
regulations to design considerations, construction costs, and rental
income potential — all with a Calgary-specific lens.

What is a Garage Suite?
A garage suite is a self-contained residential unit located above or
beside a detached garage. It usually includes:
A private entrance
Full kitchen
Bathroom
Living/sleeping area

These suites are typically built in the backyard of an existing home
and are legally classified as a secondary suite or backyard suite under
the City of Calgary’s land use bylaw.
Garage suites are different from basement suites because they are
separate buildings and often offer more privacy and independence for
tenants or family members. They’re a great option for homeowners
looking to:
House adult children or aging parents
Earn rental income
Add value to their property
Increase living flexibility

Zoning and Bylaws: Can You Build One?
In Calgary, not every property is zoned to allow for a garage with a
suite. The zoning code for your lot determines what you can and can’t
build. Common zones that permit backyard or garage suites include:
R-C1s (Residential – Contextual One Dwelling with Secondary
Suite)
R-C2 (Residential – Contextual One/Two Dwelling)
R-CG (Residential – Grade-Oriented Infill)
R-G (Residential – Low Density)
If your lot is not zoned for a suite, you may still be able to apply for a
land use redesignation or discretionary use through the City of
Calgary. This involves submitting a development permit and getting
approval from City Planning.

🛠️ Pro tip: You can check your property’s zoning using the City of
Calgary’s myProperty Map or speak with a builder familiar with
Calgary bylaws, like Asencio Built Construction.

Permitting Process
Once you confirm zoning, you’ll need:
A development permit (if the suite isn’t permitted by default)
A building permit
Detailed construction plans including site plans, elevation views,
and utility layouts
The suite must also meet building code requirements related to:
Fire separation
Egress windows
Soundproofing
Heating and ventilation
Parking (at least one additional on-site stall is typically required)
In 2024, Calgary City Council streamlined the permitting process for
backyard suites as part of a broader push to support gentle
densification and ease the rental housing shortage. That means it’s
now easier and faster than ever to get approval — especially with help
from experienced builders.

What Does It Cost to Build a Garage with a Suite?
In Calgary, you can expect to pay anywhere from $150,000 to
$250,000+ to build a garage with a suite above, depending on:
Square footage
Roofline complexity
Finishes (basic vs. high-end)
Heating (gas furnace, in-floor heat, etc.)
Plumbing and utility connections
Site conditions and access

​

How Long Does It Take to Build?

A garage suite project in Calgary typically takes 3 to 6 months from initial consultation to move-in ready. Here’s the general timeline:

1. Design & Permits: 4–8 weeks

2. Foundation & Framing: 3–4 weeks

3. Exterior Work: 2–3 weeks

4. Interior Finishes & Trades: 4–6 weeks

5. Inspections & Occupancy: 1–2 weeks
    

Weather, permitting delays, and trade availability can impact timelines — especially during Calgary’s colder months — but hiring an experienced contractor helps keep the process smooth and efficient.

Rental Income Potential

Calgary’s vacancy rate remains low, and demand for legal rental units is high — especially near transit, schools, and inner-city neighborhoods. A garage suite could generate anywhere from $1,100 to $1,800/month, depending on:

• Location

• Size

• Furnishing

• Utility setup

You can also use the suite for Airbnb or short-term rental, though that comes with additional licensing and rules. Either way, many homeowners use the rental income to help:

• Pay down their mortgage

• Offset construction costs

• Increase property ROI
   

Financing a Garage Suite Build

Most homeowners fund garage suites through:

• Home equity lines of credit (HELOC)

• Refinancing or second mortgages

• Construction loans
   

Some lenders recognize garage suites as income-generating assets, which can help in qualifying for financing. If you’re unsure where to start, speak to your mortgage broker or builder to estimate total project value and lending options.

Benefits of Building a Garage with Suite

✅ Increased Property Value

✅ Rental Income Potential

✅ Flexible Multi-Generational Living

✅ More Privacy vs. Basement Suite

✅ Attractive for Resale Buyers

​

As Calgary continues to grow and evolve, garage suites represent a smart, future-proof investment that serves both your personal needs and the broader housing landscape.

Final Thoughts

Yes — you can build a garage with a suite in Calgary, and in today’s market, it might be one of the most strategic upgrades you can make to your home. From zoning and permitting to construction and finishing, it’s essential to work with a builder who understands Calgary-specific requirements, timelines, and pricing.

At Asencio Built Construction, we specialize in garage suite construction and secondary suites across Calgary and surrounding areas. Whether you’re ready to start building or just exploring options, we’re here to help you bring your vision to life — with no shortcuts and no surprises.

The Case For Building a Garage

1. Increase Property Value

A well-built garage can add $20,000–$50,000+ to your home’s resale value depending on the size, location, and finish. In competitive real estate markets like Calgary, garages are often seen as essentials — especially during our long winters.

​

Bonus: Adding a garage suite can dramatically increase property value and generate rental income.
 

2. Protect Your Vehicles

From hailstorms and frigid cold to harsh summer sun, Alberta weather isn’t gentle on vehicles. A garage:

• Extends the life of your car

• Cuts down on maintenance

• Boosts resale value of your vehicle

​

Not to mention: no more scraping ice in -30°C.
 

3. More Storage, Less Clutter

Lawn equipment, tools, bikes, winter tires — it all needs a home. A garage lets you free up space inside your house and basement. Add built-in shelving or a loft area, and suddenly you’re looking at serious storage potential.
 

4. Future Flexibility

A garage today can become a workshop, home gym, or even a garage suite in the future. Planning ahead by framing for extra height or utility rough-ins can make future upgrades much easier and cheaper.

 

🤔 The Case Against Building a Garage

​

While we’re firm believers in garages adding value, there are a few reasons why you might hold off:
 

1. Budget Constraints

A basic detached garage in Calgary can start around $30,000, with finished garages (drywall, insulation, heat) pushing toward $50,000+. Not everyone has room in the budget today — but financing options (like those we offer through iFinance) can help make it manageable.
 

2. Limited Space

Some lots are tight, especially in older or inner-city areas. Building a garage may reduce your yard space or violate setback rules. In these cases, careful planning and creative design are key.
 

3. Short-Term Stay

If you’re planning to move in the next 12 months, it might not make sense to build — unless you’re in a market where garages are deal-breakers. In that case, a garage could make your home sell faster and for more.
 

🔑 Final Verdict: Yes — Build It (If You Can)

If your budget and lot allow, building a garage is a value-adding, lifestyle-improving decision. Whether it’s for added comfort, increased resale value, or long-term rental potential, the return on investment is strong — especially when you work with a contractor who gets it right the first time.
 

Thinking About Building a Garage?

​

We’re Asencio Built Construction Ltd., and we’ve helped countless Calgary homeowners build garages that are functional, durable, and built to last. From simple detached units to fully finished suites, we make it easy — permits, planning, and construction all under one roof.