In mid-February, BILD Edmonton Metro attended a Leduc Working Group tour that showcased various small-lot housing developments across the Edmonton Metro Region, emphasizing affordability, changing homebuyer preferences, and innovative housing solutions.
The tour, which started in the Alces community, focused on homes catering to evolving buyer demographics, ranging from $300,000 to $350,000. These two-story homes are spacious and bright, at 1,500 square feet, with nine-foot ceilings, single-car garages and natural light.
Who’s Buying?
When we look at a “typical” consumer, traditional family homebuyers – married couples with children – are no longer the primary market, professionals are saying. Many buyers are single, divorced, or have different household compositions. “In Edmonton, we found that people tend to get married and have kids later on, or sometimes never,” said Streetside Developments Vice President Nicholas Carels. “So, when it comes to new builds, we must consider all types of home buyers. And builders, developers, and city officials are the ones recognizing the need for more inclusive, independent, and accessible communities.”
Alessandra Bruni-Smith, President of ChalkMark Residential, was one of the tour’s co-hosts. She agreed with Carels, saying, “It’s not just young people or first-time homeowners moving into these (kinds of homes), we actually see a different demographic buying these, like a divorced single parent.”
The larger home sizes that can fit within these 34m lots tend to target higher-income buyers, and range from $550,000 to $580,000.
The Rosenthal community, located on Edmonton’s west side, include show homes with 12, 14, and 18-foot lot size options, offering mid-size and larger homes for buyers who may have more than two residents and require an additional bedroom, bathroom, and in-suite laundry upstairs.
However, this additional space may not be as yearned for as some assume. Many new buyers don’t need the additional space that new homes offer. “I’ve always asked myself: ‘When did houses get so big?’” said Carels. “If you look at a younger person wanting to move in, they may take the smaller space as a tradeoff for the lower price point.”
Affordability, or Space?
This year alone, over 600 townhomes were sold in the area, highlighting a shift towards the popularity and desire for condo-format homes. And, not to mention, these come without the additional condo fees.
“The Devon project sold out in just three hours, which obviously reflects the demand for affordable housing in the region, and a want for these condo-style builds,” Carels said.
When looking at larger options, such as 18-foot lots, the cost jumps to a $400,000 or more cost, meaning that the buyer would require an annual salary $100,000 or more to qualify. For buyers who have just entered the workforce, industry professionals often suggest going with a smaller lot to bring down the price, such as a 14-foot space, which can bring the cost down to $320,000.
Another element to consider is the housing features. Properties with no garages can, in some cases, provide more affordability for starter home options, and accommodate those who utilize the neighborhood’s walkability and transit options.
Re-Imagining your Home, Community, and The City
Because a small lot product may be a stepping stone on the way to your dream home, there are many things to think about. One of these is considering your investment. “Although a well-managed condo is a great investment, that doesn’t mean that resale challenges don’t exist,” Carels said. “These are the things you have to consider when purchasing a home and becoming a part of a community like this.”
The small-lot housing market in Edmonton is constantly evolving, expanding, and focusing on costly, flexible, and demographic-based options. Developments like Alces and Rosenthal cater to a broad range of buyers, from first-time homeowners to downsizers.
And, although ongoing challenges in municipal planning and affordability remain prevalent, these new housing formats are quickly gaining traction. Who knows – small-lot properties may even be the types of projects we need to reshape Edmonton’s housing landscape overall.
It’s no surprise that there has been an significant increased demand for smaller homes that fit modern lifestyles. But are those lifestyles changing just as quickly as houses are being built? And, when is the right time to act on it? According to Carels, it’s as soon as you can. “Everyone wants to hop on that home ownership ladder at some point.” So, why not now?
Thank you to the City of Leduc, Qualico, the BILD Edmonton Metro Leduc Working Group, Nicholas from Streetside, and Alessandra from Chalkmark Residential.
Written by Payton Phillips
