Monday, February 02, 2026
Calgary’s housing market is booming in 2026, with the city adding thousands of new residents each month and a continued shortage of affordable, family-sized homes in established neighborhoods. As land for new subdivisions becomes scarcer and more expensive, urban infill—redeveloping older lots with denser housing—has become the go-to strategy for developers and investors. Among infill options, row townhomes (also called attached townhouses or row houses) stand out as one of the most profitable and popular forms. These are rows of 3-8 attached units on a single or combined lot, sharing walls for efficiency while offering individual entrances and small yards.
Why are row townhomes the smartest choice right now? They balance scale, cost, and demand perfectly: Higher density than duplexes means more units per lot (boosting total revenue), but lower complexity than larger multi-family buildings like 4-plexes or apartments. In Calgary’s market, where rental vacancy is around 4-6% and median home prices exceed $500,000, row townhomes appeal to first-time buyers, families, and investors seeking strong yields without condo fees. Construction costs are stabilizing (2-4% inflation forecast for 2026), and incentives like the City’s Infill Fast Track program cut permitting times, making these projects faster and more profitable.
This comprehensive guide explains why row townhomes are the top infill investment in Calgary for 2026. We’ll cover market trends, why they outperform other infill types, detailed cost breakdowns, revenue and profit potential, best neighborhoods, design features that sell or rent fast, available incentives and financing, real-world examples, risks with mitigation strategies, and tips to maximize your returns. Whether you’re a seasoned developer eyeing multi-unit builds or an investor starting with infill, this article provides the insights you need to make informed decisions.
Why Row Townhomes Are the Smartest Infill Investment in Calgary 2026
Row townhomes are gaining popularity because they fit perfectly into Calgary’s growth story. The city is projected to need 100,000+ new homes by 2030 to keep up with migration and job creation in sectors like tech and energy. Infill helps meet this demand by adding units in mature neighborhoods with existing schools, parks, and transit, without the high infrastructure costs of new suburbs.
Compared to other infill types:
- Vs Duplexes: Row townhomes allow more units (3-8 vs 2), spreading land costs and increasing total revenue by 50-100%.
- Vs 4-Plex or Larger Multi-Family: Less regulatory hassle (no condo corp required), lower per-unit build costs due to shared walls, and easier financing for smaller-scale projects.
- Vs Single-Family: Much higher density and profit per lot—turn one teardown into 4-6 sellable units.
In 2026, stabilizing material prices (flat to 0-3% increases) and labor markets (unemployment up to 4.7%, easing wage pressures) make row townhomes more affordable to build. Rental yields are strong (6-8%), with average rents for 3-bed townhomes at $2,500-$3,500/month, and resale prices $450,000-$650,000 per unit. Plus, row townhomes qualify for the same incentives as other infill, like CMHC Eco refunds (25% on premiums for green upgrades) and CEIP rebates (10% on energy-efficient features).
The “smart” part? Row townhomes appeal to a broad market: Families want the space and yard without condo fees, investors like the rental cash flow, and buyers appreciate the affordability in high-demand areas. They also align with Calgary’s Municipal Development Plan, which targets 33% of growth in developed areas by 2039, offering faster approvals through programs like Infill Fast Track.
Typical Costs to Build Row Townhomes in Calgary 2026
Building row townhomes involves several cost categories. Here’s a realistic breakdown for a typical 4-6 unit project on a 100-150 ft wide lot, based on 2026 estimates with modest 2-4% inflation.
Land Acquisition Costs
- Average price: $600,000-$1.2 million (lower in suburbs like Forest Lawn, higher in inner-city like Mount Pleasant).
- Tip: Look for adjacent lots to combine for larger rows; this spreads costs over more units.
Demolition and Site Preparation
- Cost: $50,000-$100,000 (includes removing old structures, grading, and utility disconnects).
- Factors: Asbestos testing in older homes can add $5,000-$10,000.
Construction Costs
- Per unit: $300,000-$450,000 (includes framing, plumbing, electrical, finishes).
- Total for 4-6 units: $1.2M-$2.5M.
- Breakdown: Shared walls save 10-15% on framing; prefab modules can reduce by another 10-20%.
- Material trends: Stabilizing lumber prices (flat in 2026) keep costs predictable.
Soft Costs
- Permits and fees: $50,000-$150,000 (development permits, off-site levies). Use Infill Fast Track to cut times and holding costs.
- Engineering and design: $50,000-$100,000.
- Financing interest and marketing: $50,000-$150,000.
Total Project Cost
- $1.2M-$2.5M (average $350,000-$420,000 per unit). Add 10% contingency for inflation or delays.
Cost-Saving Strategies for 2026
- Use prefab: 20-40% faster, 10-20% cheaper.
- Local sourcing: Cut transport 5-15%.
- Green upgrades: Qualify for CEIP 10% rebates on insulation/solar.
- Bulk buying: Negotiate for materials/fixtures in multi-unit projects.
Revenue & Profit Potential for Row Townhomes
Sales Revenue Strategy
- Average sale price per unit: $450,000-$650,000 (total $1.8M-$3.9M for 4-6 units). Premium for energy-efficient or modern designs.
- Gross profit margin: 20–32% ($400,000-$800,000 net).
- Profit per unit: $100,000-$150,000.
Rental Revenue Strategy
- Average rent per unit: $2,500-$3,500/month (3-bed with garage).
- Total monthly income: $10,000-$21,000.
- Annual gross: $120,000-$252,000.
- Net yield after expenses: 6–8% (strong for Calgary). Legal suites add 20-30% income.
Many developers sell 70-80% and hold 1-2 for cash flow.
Best Neighborhoods for Row Townhome Profits in Calgary 2026
- Forest Lawn / Ogden / Radisson Heights: Lower land ($600K-$900K), high demand, good appreciation. Profit potential: 25-30% margins.
- Highland Park / Tuxedo Park / Mount Pleasant: Mid-range land ($800K-$1.2M), premium pricing ($550K-$700K/unit), fast sales. Profit: 22-28%.
- Beltline / East Village: Higher land but top values, mixed-income incentives. Profit: 20-25% with grants.
Tip: Check Calgary’s Infill Strategy for zoning updates—some areas allow higher density in 2026.
Design & Feature Trends That Maximize Profit in 2026
- Legal basement suites: Add rental income or sale value.
- Energy-efficient: Heat pumps, insulation for CMHC refunds.
- Small private yards/rooftop decks: Family appeal.
- Attached garages: Winter essential.
- Open-concept, 9-ft ceilings: Spacious feel.
- Smart features: Low-cost, high perceived value.
These sell 20-30% faster.
Incentives & Financing That Boost Row Townhome Profits
- Infill Fast Track: Cut permits to 4-6 months.
- CEIP: 10% rebates on green upgrades.
- CMHC: 25% refunds for eco features.
- GST rebate: For new builds.
- Low-cost loans: From ATB or credit unions.
Stacking saves 10-25%.
Real-World Row Townhome Projects in Calgary
- Glamorgan 5-unit (2025): Cost $2.1M, sold $550K-620K each → $600K profit.
- Ogden 6-unit (2025): Cost $2.4M, rents $2,800/unit → 7.5% yield.
- Forest Lawn 4-unit (2025): Cost $1.6M, sold out fast at $480K-580K → 25% margin.
Risks & How to Mitigate Them in 2026
- Market slowdown: Hold for rentals.
- Zoning appeals: Community engagement.
- Cost overruns: Prefab, fixed contracts.
- Financing: Pre-approve.
Final Thoughts: Why Row Townhomes Are the Smartest Infill Play in Calgary 2026
Row townhomes offer unmatched balance: Scale, profit, demand. In 2026, they’re a smart investment.
For developers, experienced builders can optimize. Good Earth Builders, with 23+ years and 846 projects in Calgary, specializes in row townhomes. Their tree-planting pledge adds value. Contact Good Earth Builders for consultation.
