Friday, January 23, 2026
If you’ve been putting off that kitchen refresh, basement reno, primary suite upgrade, or full home transformation, you’re not alone. Many Calgary homeowners have been asking the same question lately: “Is now actually a good time to renovate in 2026?”
The short answer: Yes — for most people, 2026 is one of the strongest and most predictable windows to renovate in Calgary in the last several years.
But “good time” depends on your personal situation, goals, budget, timeline, and which type of project you’re planning. In this detailed 2026 market update, we’ll break down the current state of the Calgary renovation market, what’s driving costs and value right now, who should (and shouldn’t) renovate this year, the projects with the highest ROI, available incentives, real cost examples, and practical steps to get the best outcome.
Whether you’re Googling “is now a good time to renovate Calgary 2026,” “Calgary renovation market update 2026,” “best time to renovate home Calgary,” or “should I renovate my house in Calgary this year,” this guide gives you clear, honest, up-to-date answers.
Calgary Renovation Market Snapshot – Early 2026
Here’s the quick overview of where things stand right now:
- Construction costs → Stabilized after the wild inflation of 2022–2024. Material prices (lumber, drywall, steel, fixtures) are flat or slightly down. Labor rates increased only 3–5% year-over-year — much slower than before.
- Interest rates → Mortgage rates sitting in the 4.5–5.5% range (both variable and fixed). HELOCs and renovation loans are far more affordable than the 2023–2024 peaks.
- Home values → Calgary average home price ≈ $580,000–$620,000 (steady, moderate growth). Renovated, energy-efficient homes still sell faster and for 5–12% more than dated comparables.
- Buyer demand → Very strong for move-in-ready, modern, efficient properties. Finished basements, updated kitchens, and legal secondary suites remain top features buyers want.
- Rental market → Extremely tight. Legal secondary suites rent quickly at premium rates ($1,500–$2,800/month depending on size/location).
- Incentives & rebates → Still active: CEIP low-interest financing, utility rebates (ENMAX/ATCO), secondary suite grants, federal greener homes programs.
- Contractor availability → Much improved compared to 2022–2024. More trades available, shorter wait times, better pricing leverage.
Bottom line: 2026 is not the overheated peak of 2022, nor the uncertain slowdown of 2023–2024. It’s a balanced, relatively predictable year — one of the best recent windows to renovate if your personal finances and goals align.
Key Factors Making 2026 a Good Time to Renovate in Calgary
Let’s look at the main reasons why 2026 feels favorable for most homeowners.
1. Construction Costs Have Stabilized
After several years of sharp increases, material and labor costs have leveled off in 2026.
- Lumber, steel, drywall, and most fixtures are no longer seeing monthly double-digit jumps.
- Labor rates are up only modestly (3–5% year-over-year), and contractor availability is much better than during the 2022–2024 crunch.
This stability means you can budget with more confidence — no more “prices changed again last week” surprises.
2. Financing Is More Affordable
Mortgage rates are sitting in the mid-4% to low-5% range (both variable and fixed). Home equity lines of credit (HELOCs) and renovation loans are far cheaper than they were in 2023–2024. Many homeowners are using HELOCs at 5–6% to fund projects instead of high-interest credit cards or personal loans.
If you have equity in your home, borrowing to renovate is relatively low-cost right now.
3. Strong Buyer Demand for Renovated, Efficient Homes
Calgary buyers in 2026 still heavily prefer move-in-ready properties with modern kitchens, updated bathrooms, finished basements, and energy-efficient features over fixer-uppers. Renovated homes sell faster and often for 5–12% more than dated comparables in the same neighborhood.
A kitchen reno, primary suite upgrade, or legal secondary suite can make your home stand out dramatically in listings.
4. Rental Income Remains Very Strong
Legal secondary suites (basement, garage, laneway) continue to rent quickly and at premium rates in 2026:
- 1-bedroom: $1,500–$2,200/month
- Larger 1-bed or 2-bedroom: $2,000–$2,800/month
- High-end / modern / Airbnb-ready: $2,500–$3,500/month short-term
Net annual income after expenses: $12,000–$25,000+ — enough to cover a big chunk of the renovation cost over time.
5. Energy Efficiency Incentives Are Still Available
Several programs remain active in 2026:
- Clean Energy Improvement Program (CEIP) — Low-interest financing (around 3.75%) for insulation, heat pumps, windows, HRV, etc. Repaid through property taxes over up to 25 years.
- Utility rebates (ENMAX, ATCO) — $500–$2,000+ for ENERGY STAR appliances, HRVs, heat pumps
- Secondary suite grants — Up to $10,000 from the City of Calgary
- Federal greener homes programs — Up to $5,000–$10,000 for qualifying retrofits
These incentives can reduce your net cost by 10–40%, especially for energy-focused projects.
6. Contractor Availability Is Improving
After the severe labor shortages of 2022–2024, more tradespeople are available in 2026. This means shorter wait times, less frantic scheduling, and better ability to negotiate pricing or timelines.
When 2026 Might NOT Be the Right Time to Renovate
There are still situations where waiting (or doing smaller updates) makes more sense:
- You plan to sell within 2–3 years → Some projects (especially secondary suites) take 5–10 years to fully pay off through rent or resale.
- Your budget is very tight → Even with incentives, major renos require significant upfront cash or financing.
- Your home is in a slower-growth suburb → Suites and upgrades add less value in areas with oversupply or slower appreciation.
- You’re not staying long-term → If you won’t personally enjoy the space or capture the ROI, smaller cosmetic updates may be smarter.
Top Renovation Projects in Calgary 2026 – Ranked by ROI
Here’s how the most common projects stack up in 2026:
- Legal Secondary Suite (Basement / Garage / Laneway)
- Cost: $130,000–$280,000+
- Added value: $120,000–$250,000+
- ROI: 70–100%+ (often higher with rent)
- Annual rental income: $18,000–$30,000+ gross
- Why it ranks #1: Highest overall return when rented + strong resale premium
- Kitchen Renovation (Mid-Range to High-End)
- Cost: $40,000–$100,000
- Added value: $30,000–$80,000
- ROI: 70–85%
- Why it ranks high: Kitchens sell houses; modern, efficient designs are in huge demand
- Primary Suite Upgrade
- Cost: $80,000–$180,000
- Added value: $60,000–$140,000
- ROI: 65–80%
- Why it’s popular: Immediate personal luxury + strong buyer appeal
- Basement Family Room / Rec Space
- Cost: $60,000–$140,000
- Added value: $50,000–$120,000
- ROI: 70–85%
- Why it works: Adds usable living area without full suite complexity
- Bathroom Renovation (Primary / Ensuite)
- Cost: $20,000–$50,000
- Added value: $15,000–$40,000
- ROI: 60–80%
- Why it’s solid: High impact for relatively lower cost
Realistic Cost Factors to Watch in Calgary 2026
- Labor: $55–$85/hour for skilled trades (stable)
- Materials: Flat or slightly down from 2024 peaks (lumber, drywall, fixtures)
- Permits: $3,000–$12,000 (higher for legal suites)
- Energy upgrades: Add 10–20% upfront but qualify for rebates
- Inner city vs suburbs: Inner-city projects 15–25% higher due to access and parking
How to Maximize Your Renovation ROI in 2026
- Prioritize energy efficiency → Qualifies for CEIP financing and rebates
- Go legal for secondary suites → Unlocks higher rents and resale value
- Focus on high-impact areas — kitchens, primary suites, legal suites
- Choose durable, timeless finishes — avoid trendy colors/finishes that date quickly
- Get 3–5 detailed quotes — from reputable contractors
- Budget 15% contingency — surprises are common in older Calgary homes
- Stack incentives — CEIP + utility rebates + grants can cut net cost significantly
Before-and-After Inspiration: Calgary Renovations That Delivered Strong Returns
Real Calgary projects show what’s possible:
- Kitchen transformation — Dated cabinets to modern shaker style with energy-efficient appliances — added $70,000 in value
- Legal secondary suite — Unfinished basement to bright, efficient rental unit — rents for $2,200/month, added $200,000 in appraised value
- Primary suite upgrade — Small, dark bedroom to luxurious spa-like retreat — homeowners love it, resale boost $110,000
These examples show how strategic renovations pay off.
For more visual ideas, check the City of Calgary Secondary Suite Gallery or browse local projects on Houzz.
Conclusion: Is 2026 the Right Time to Renovate in Calgary?
Yes — for most homeowners, 2026 is one of the best windows in recent years to renovate. Costs have stabilized, financing is affordable, incentives are still available, and buyer demand for renovated, efficient homes remains very strong.
If your goal is maximum financial return, a legal secondary suite usually delivers the highest overall ROI through rental income and resale value. If you want personal comfort and plan to stay long-term, a primary suite, kitchen, or bathroom refresh often makes more sense.
Either way, careful planning and working with experienced local professionals who know Calgary’s specific requirements, climate challenges, and market dynamics will help you get the best possible outcome.
If you’re ready to explore your renovation options in Calgary — whether it’s a kitchen, primary suite, basement, or full secondary suite — partnering with a trusted team that understands the local market, current codes, climate needs, and incentive programs makes all the difference.
In Calgary, Reno King has earned a strong reputation for delivering high-quality renovations with transparency and care. With more than 23 years of experience, over 846 completed projects, and a genuine commitment to sustainability (including planting 10 trees for every project), they’re a reliable partner for homeowners who want professional results and real value.
