Benefits of new growth
First let’s start with some big numbers. Did you know the Residential Construction Industry was responsible for approximately 36,400 jobs in new construction, renovation and related fields last year alone? That makes us one of the largest employers within the Calgary region. Those jobs equate to about $2.2 billion dollars in wages which then further benefits the local economy through increased consumer spending. The majority of those who work in the industry also live in Calgary communities. Many of these individuals contribute to the City’s economic health by owning their own homes, paying property taxes and utility/user fees.
So those who supply the materials, decorate and furnish the interiors, market the products and actually build the condo towers, the new houses and new communities are obviously a positive force in the economy.
What about the new communities themselves? What do they provide? We decided to seek our answers from some trusted sources.
One of the most important things new development provides is ‘choice’. A City of Calgary report, “Calgary & Region Social Outlook 2010-2015”, talks about new communities and their continuing popularity from 2009-2010 even as population growth in the city slowed overall.
Population in the downtown core grew by 1.1 per cent and in the developing communities by 6.7 per cent. While the population in most of the rest of the city declined by 8,489 people, in the developing communities it grew by 14,374. The developing communities thus accounted for 237 per cent of Calgary’s population growth between 2009 and 2010, accommodating not only new growth, but also residents from more established areas who moved to the developing communities. As a result, the share of the city’s population living in the developing communities continued to rise, increasing from 20.2 per cent to 21.5 per cent.
That’s a pretty clear indication that an increasing number of Calgarians have found a lifestyle they prefer in a new community. As the report stated, that encompasses both new residents and those who moved from other neighbourhoods. Without that choice available, would they have stayed in Calgary?
In fact, as Calgary Economic Development looks to woo even more people and businesses to Calgary, the fact that those choices exist is a huge selling feature. According to their website;
Quality of life is easy to find in Calgary. Whether you’re looking for a great suburban neighbourhood to raise a family or want to live the urbanist life in the heart of the city, Calgary has award-winning communities and vibrant spaces…Calgary has both of these lifestyles in its communities, and everything in between.
From a recent City of Edmonton report, “Costs and Revenues for New Areas”, we find some very specific benefits that new communities provide.
The current form of new residential neighbourhood development leads to lower housing prices and more diverse choice in housing. This in turn makes the City more able to maintain and attract a skilled and talented work force. Together with an appropriate supply/expansion of jobs, this creates a double dividend situation in which individuals both reside (paying taxes and spending income) and work (contributing to commercial/industrial taxes and creation of wealth) in Edmonton.
The factors mentioned above play a large role when employers are looking to relocate their offices or expand their current operations. Sometimes it can be easy to get sidetracked by the problems that ‘growth’ in all its forms (economic, population, size) can present but the solution isn’t to end all new development. The benefits new growth provides are simply too great to ignore.
Of course, in the end, we need balance. Sensitive redevelopment of our established neighbourhoods is important. More multi-family, urban development is also a key to future prosperity. Let’s just not forget that over 21 per cent of our citizens today call our brand new communities home and many more will come to Calgary in the hopes of following in their footsteps.
For all the reasons already mentioned, the ability of these new communities to continue to attract new Calgarians truly benefits us all.
Do you think new growth benefits Calgary or should we stop building new communities? Your voice matters;
vote in our new poll.