Primary Suite vs Secondary Suite: Which Gives Better ROI in Calgary 2026?

Monday, January 19, 2026

Adding a new suite to your home is one of the most popular ways Calgary homeowners increase property value and generate income in 2026. The two main options are:

• Primary Suite — A luxurious main-floor or upper-level master suite renovation (also called a primary bedroom suite upgrade).
• Secondary Suite — A separate, self-contained rental unit (usually a legal basement suite, garage suite, or laneway/carriage house).

Both can deliver strong returns, but which one actually gives better ROI in Calgary right now? This 2026 guide compares real costs, resale value increase, rental income potential, payback periods, and long-term benefits so you can decide which option makes more sense for your property and goals.

If you’re searching for “primary suite vs secondary suite ROI Calgary,” “best home addition ROI 2026,” “basement suite vs primary bedroom renovation Calgary,” or “which suite adds more value to my home,” this article breaks it down clearly with current numbers.

Quick Comparison: Primary Suite vs Secondary Suite at a Glance (Calgary 2026)

1. What Is a Primary Suite Renovation?

A primary suite is a high-end upgrade to the main bedroom area of your home. It typically includes:

• Enlarged bedroom + luxurious ensuite bathroom
• Walk-in closet or dressing area
• High-end finishes (heated floors, freestanding tub, double vanity, smart lighting)
• Sometimes a private balcony or sitting area

Average cost in Calgary 2026: $80,000 – $180,000 (depending on size, finishes, and structural changes).

Who chooses this?

• Empty nesters upgrading their forever home
• Families wanting a luxurious master retreat
• Homeowners planning to stay long-term and enjoy the space

Primary suites focus on personal comfort and luxury. They turn an ordinary bedroom into a private oasis with spa-like features, custom closets, and modern amenities. In Calgary, where winters are long, homeowners often add heated floors, smart thermostats, and soft lighting to make the space feel warm and inviting.

The renovation usually involves expanding the bedroom, gutting the existing ensuite, and adding high-end fixtures. It can include structural changes like removing walls or adding windows for better light. Since it’s part of the main living area, it doesn’t require separate entrances or fire separation like a secondary suite.

Pros of a primary suite:

• Immediate personal enjoyment
• Easier and faster to build
• Lower risk (no tenant issues)
• Appeals to most buyers

Cons:

• No rental income
• Value is purely in resale appeal

2. What Is a Secondary Suite?

A secondary suite is a separate, self-contained living unit (usually in the basement, above the garage, or in the backyard). It has its own kitchen, bathroom, bedroom(s), and entrance. In Calgary, it must be fully legal to be rented or sold with the property.

Average cost in Calgary 2026: $130,000 – $280,000+ for a quality, energy-efficient 700–900 sq ft unit.

Who chooses this?

• Homeowners seeking rental income
• Families needing space for adult children or aging parents
• Investors looking to maximize property cash flow
• People planning to sell and want the highest resale premium

Secondary suites are built to be independent. They require separate utilities (or metered), fire separation, egress windows, and compliance with the City of Calgary’s secondary suite bylaws. In 2026, the City has streamlined permitting, making it easier to add legal suites, especially with energy efficiency features that qualify for rebates.

Pros of a secondary suite:

• Ongoing cash flow
• Higher resale premium in Calgary
• Multi-generational living option
• Stronger long-term investment

Cons:

• Higher upfront cost
• Tenant management
• More complex permitting

3. Cost Comparison: Primary Suite vs Secondary Suite

Primary Suite Costs (2026 Calgary averages):

• Basic refresh (paint, new flooring, updated ensuite): $80,000–$110,000
• Mid-range (new bathroom, walk-in closet, heated floors): $110,000–$150,000
• Luxury (custom millwork, spa-like ensuite, structural changes): $150,000–$180,000+

Secondary Suite Costs (2026 Calgary averages):

• Basic legal conversion (existing basement): $130,000–$180,000
• Mid-range new build/renovation (700–800 sq ft): $180,000–$240,000
• High-end energy-efficient suite (heat pump, HRV, premium finishes): $240,000–$280,000+

Key cost drivers:

• Secondary suites almost always cost more because they require full kitchens, separate entrances, fire separation, egress windows, and often structural work.
• Primary suites are usually renovations within the existing footprint, so fewer major structural expenses.

Calgary-specific note: Inner-city projects (e.g., Beltline, Kensington) are 15–25% more expensive due to access and labor rates. Suburban areas (e.g., Evanston, Mahogany) are more affordable.

4. Resale Value & ROI Comparison

Primary Suite ROI

• Added value: $60,000 – $140,000 (65–80% recovery)
• Best case: Luxury ensuite with heated floors and walk-in closet in a desirable neighborhood can return 80–90%.
• Why it works: Buyers love updated primary suites—it’s one of the first things they notice.
• Downside: No rental income; value is purely in resale appeal.

Secondary Suite ROI

• Added value: $120,000 – $250,000+ (70–100%+ recovery)
• Best case: Legal, modern, energy-efficient suites in high-demand areas (inner city, near transit) can return 90–120% when sold.
• Why it works: Calgary appraisers assign very high value to legal rental units due to income potential.
• Bonus: You can earn rental income while you own the property (often $18,000–$30,000/year gross).

Winner on pure resale ROI: Secondary suite usually edges out primary suite, especially if legal and well-executed.

Winner on total return (resale + income): Secondary suite wins by a wide margin if you rent it out.

5. Rental Income Potential in Calgary 2026

Primary Suite: No rental income (it’s part of your personal living space).

Secondary Suite:

• 1-bedroom legal suite: $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 like property tax, insurance, maintenance): $12,000 – $25,000+ This makes secondary suites one of the few renovations that can pay for themselves over time through rent alone.

Calgary market note: Legal suites are in short supply and high demand, especially in areas near CTrain, downtown, or universities. Efficient, modern suites command premium rents.

6. Other Factors to Consider in 2026

Primary Suite Advantages:

• Immediate personal enjoyment
• Easier and faster to build
• Lower risk (no tenant issues)
• Appeals to most buyers

Secondary Suite Advantages:

• Ongoing cash flow
• Higher resale premium in Calgary
• Multi-generational living option
• Stronger long-term investment

Calgary-specific notes:

• Legal secondary suites are in short supply and high demand → they command premium rents and resale value.
• Energy-efficient upgrades (heat pumps, HRV, insulation) qualify for CEIP financing and rebates, making secondary suites more affordable.
• Inner-city properties (near CTrain, downtown) see higher rental rates and faster resale uplift.

Tax considerations:

• Primary suite: Personal use—no major tax benefits
• Secondary suite: Deductible expenses if rented (interest, depreciation, maintenance)

7. Before-and-After Inspiration: Real Calgary Examples

Primary Suite Example:

• Before: Dated main bedroom with small ensuite
• After: Spa-like retreat with heated floors, double vanity, walk-in shower, and custom closet
• Result: Added $100,000 in value; homeowners enjoy luxury daily

Secondary Suite Example:

• Before: Unfinished basement with poor insulation
• After: Legal 1-bedroom suite with heat pump, HRV, modern kitchenette, and stylish finishes
• Result: Rents for $2,100/month; added $200,000 in appraised value

These Calgary examples show how both options can transform a home, but secondary suites often deliver bigger financial wins when rented.

For more visual ideas, check the City of Calgary Secondary Suite Gallery or browse local renovations on Houzz Calgary.

Conclusion: Which Suite Gives Better ROI in Calgary 2026?

Primary Suite — Better if you want personal luxury, plan to stay in the home long-term, and don’t want tenant management. Solid 65–80% ROI on resale.

Secondary Suite — Better overall ROI in most Calgary cases, especially if you rent it out. You get:

• 70–100%+ resale recovery
• $12,000–$25,000+ annual rental income
• Strong demand from buyers and renters

If your goal is maximum financial return in 2026, a legal, energy-efficient secondary suite usually wins. If your priority is personal comfort and simplicity, a beautiful primary suite upgrade is the way to go.

Either way, both are strong investments when done right.

If you’re considering a primary suite or secondary suite renovation in Calgary, working with a trusted local team that understands the market, current codes, climate needs, and incentive programs will help you maximize value and avoid costly mistakes.

In Calgary, Reno King has built a strong reputation for high-quality renovations, including primary suites and legal secondary suites. With more than 23 years of experience, hundreds of 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 ROI.