Calgary Homebuyers Face Land Challenges as Prices Soar and Demand Shifts: Lighthouse Custom Homes Shares Key Insights
For anyone looking to build a new home in Calgary, securing the right piece of land is the essential first step—but that step has become significantly more complicated and expensive in recent years.
“Obviously, the key to any new home is the lot,” says Andrea Deydey, co-founder of Lighthouse Custom Homes. “The number one step in a new home is the actual land.”
Deydey and her colleague Sarah Aves, Area Sales Manager, sat down to discuss the most important considerations for homebuyers navigating Calgary’s evolving real estate landscape—from land pricing and availability to soil quality and zoning regulations.
Inner-City Land Costs Reach “Absurd” Levels
The biggest story in land purchasing today is cost—particularly in inner-city neighbourhoods that are ripe for development.
“In inner city communities like Altadore, South Calgary, Hurst, and Parkdale, we’ve seen a monumental price increase—almost to the point of absurdity,” says Deydey. “In North Glenmore Park, we purchased a lot in the mid-$600,000s about two years ago. A similar lot just sold off-market—not even on MLS—for $1.1 million.”
That kind of leap is making the inner city unaffordable for many homebuyers. “It puts it out of budget for a lot of people,” she adds.
To mitigate the volatility, Lighthouse is focusing on communities like Alpine Park and in the past Watermark. “These are established communities where costs are more under control and not as fluctuating. It’s in the buyer’s best interest,” Deydey explains.
“Inner city neighbourhoods are all over the place with costs and have been increasing up and down substantially,” adds Deydey. “Established communities built by developers have a more steady projection of lot cost.”
What to Look For in a Lot
For new homebuyers, the land search starts with narrowing down personal preferences. “It kind of depends on where you want to build—inner city, acreages, or a community. What you’re going to look for is going to be different,” says Aves.
“We always talk with clients to figure out what’s important to them. Do they want a walkout lot or a level lot? Do they want a city view or a mountain view? Do they want neighbours in their backyard or a private one?” adds Deydey.
In communities like Watermark, even things like water features and home orientation come at a premium. “South- or west-facing backyards get more sun in the afternoon, so people pay more for those lots. And they’re usually the first to go in a community,” Deydey says.
But preferences vary. “I personally live in an east-facing backyard and I love it,” she says. “My sister has a west-facing backyard and she loves hers. It really comes back to getting to know your client and what that client needs.”
Size and Budget Go Hand-in-Hand
Larger lots come with flexibility and often allow for popular features like three-car garages. “In our communities, we’ve always had kind of that quarter-acre size, and that’s always a big selling feature,” says Aves.
In the inner city, 50 by 120 feet is a common lot size that fits most custom homes. But the home you want dictates the land you need. “We talk about how many bedrooms they want, how much square footage they think they’re going to need, and all the features of the home they want,” Aves adds.
Budget is the final and often most limiting factor. “Once you add lot and home, we need to make sure that’s going to work with their budget. Otherwise, it’s no point really chatting,” she says.
And yes—lot orientation affects cost too. “You pay more for a walkout than a level lot. You pay more for west or south backyards than you do for north or east,” Deydey says.
Is There a Lot-to-Home Cost Ratio?
While some buyers wonder if there’s a rule of thumb when it comes to lot cost versus home cost, the answer is: it depends.
“In the inner city, most people build to the maximum building envelope. So the bigger the lot, the bigger the house, so the more expensive,” says Deydey. “That ratio does ring true.”
But in Watermark, she points out an anomaly. “We had one client that bought one of the biggest lots, but they wanted a huge backyard to enjoy. They built the smallest house on the street. It was purposely chosen because they wanted the land.”
“So there’s no hard rule—just a trend,” she says. “Most people are building what suits them. Big lot, big house. But not always.”
What Lies Beneath: Soil Surprises
One issue that often surprises first-time buyers is the quality of the soil.
“In inner city areas, you have pockets with underground springs. One street in Altadore is famous for it,” says Deydey. “So most people on that street have to do more water mitigation techniques in construction.”
“You can’t really tell what’s 10 feet down until you start digging. That’s why Lighthouse encourages people to have a buffer for unexpected items.”
Deydey notes that surprises aren’t always catastrophic: “It’s not like it’s a $100,000 change, but it could be $10,000. We just don’t like to surprise our clients.”
Developers like Dream, who built Alpine Park, do soil testing before selling lots. “There’s a lot more that we know because it’s an established community,” she says.
Watermark, for instance, has high sulfate soil content. “So it’s a requirement for the builders to use sulfate-resistant concrete,” says Deydey.
“In inner city lots, you’re buying from a person who’s never thought about what the soil conditions would be. So you’re a little more at risk.”
The Hidden Costs of Teardowns
When purchasing inner city land, existing homes pose more complexity.
“If there’s a power pole in the middle of the backyard, you’re going to have to move that power pole if you want a garage,” says Deydey.
And asbestos is a real concern in older homes. “The least expensive I’ve seen for asbestos remediation is zero. The most I’ve personally seen is about $35,000,” she says.
“You can’t just walk into a house and spot asbestos. It has to be tested in a lab.”
Zoning is another factor that affects what can be built. “If there’s a street of bungalows and you want to build a three-storey home, you’re probably not going to get it approved,” Deydey explains.
That holds true in master-planned communities as well. “In Alpine Park or Watermark, there are restrictions on building height. You can’t build a skyscraper in the middle of Alpine Park,” says Deydey.
And don’t expect to go wild with colour either. “If you want a fuchsia bright pink house, you won’t be allowed to build it there.”
Guiding Homebuyers Every Step of the Way
“We guide the clients through the land selection process,” says Aves. “If they find a lot they like, we go out and look at it for them, point out any costs like moving poles or adding retaining walls. We’re always there for our clients.”
Deydey adds one final category: acreages. “You need to understand what you’re buying—how much the septic is going to cost, if you’re in a floodplain, power and gas access, fencing, driveway access to the main road.”
Acreage lots can require major investments just to prepare for construction. “The only way to make a reasonable budget is to involve someone who has trades and suppliers who can help you estimate,” she says.
For Lighthouse, it all comes down to one thing: education.
“We don’t want surprises,” says Deydey. “That’s why we take the time to walk through everything—with every client.”
Mario Toneguzzi is a veteran of the media industry for more than 40 years and named in 2021 and 2024 a Top Ten Business Journalist in the world and only Canadian. He also made the RETHINK’s global list as a Top Retail Expert 2024 and 2025.