Banff Cites 600 Homes in Pipeline, Few Built So Far

The Town of Banff says hundreds of new homes are moving through the development process, but municipal data shows most remain in early or uncertain stages, with only a small number completed so far.

The town has received applications for roughly 600 net new housing units since early 2024 under its Housing Action plan, a figure often cited as evidence that recent policy changes are beginning to unlock supply. But a breakdown of those applications shows the majority are still under review or subject to conditions, and some may never proceed to construction.

“Since the start of the Housing Accelerator Fund program in January 2024, the Town has received development permit applications for around 600 net new homes,” the Town of Banff Department of Planning & Environment said in a statement.

The department said about 70% of those proposed units are in apartment buildings, defined as structures with nine or more units, while the remainder includes a mix of secondary suites, duplexes, triplexes and fourplexes.

The shift reflects a broader push toward higher-density housing. Town data indicates 98.5% of residential land in Banff has already been developed, leaving little room for outward expansion within the boundaries of Banff National Park.

Instead, most new housing is expected to come through redevelopment, infill and the addition of secondary suites to existing properties, enabled by zoning reforms and financial incentives introduced under the Town of Banff’s Housing Action plan.

While the overall number of applications suggests a surge in activity, most projects remain in early stages. According to the town, 191 units are under review, while 260 have been approved but remain subject to conditions.

“Applications totaling 260 net new homes have been approved, however the applicants must meet conditions in order to receive their permit,” the department said.

The town said that once a development permit is issued, construction must begin within a year for the permit to remain valid. Currently, 17 units are at the building permit stage, while 111 have both permits and are under construction or ready to begin. So far, only 24 units have been completed and approved for occupancy, a small fraction of the roughly 600 units in the pipeline.

The projects reflect various stages of the development process, officials said, noting that timelines can vary widely depending on project size and complexity.

Even with approvals in place, officials say not all projects will move forward.

“Many housing development applications do not proceed if the timing is not right,” said Darren Enns, director of planning and development, citing barriers including “difficult financing, often related to global disruptions,” as well as labour shortages, private legal constraints and additional requirements tied to building within a national park.

“Unfortunately, this means some of the 600+ units in the housing pipeline may not proceed to construction,” Enns said.

The town said it is working to reduce regulatory barriers by adding planning staff, introducing an electronic permitting system and prioritizing housing applications. It has also supported homeowners adding secondary suites, including by offering free plans to assist with applications. Officials say the changes have helped drive a rise in applications and argue that planning approvals are not a primary source of delay.

“The Town of Banff provides rapid review and response when compared to other jurisdictions,” the department said, adding that delays typically occur when additional information is required from applicants, not within the municipal review process itself.

The recent increase in development proposals is also linked to federal funding through the Housing Accelerator Fund, which rewards municipalities for implementing policy changes intended to increase housing supply.

In a statement to Bow Valley Insider, the Canada Mortgage and Housing Corporation said the program is designed to encourage systemic reforms rather than directly fund construction.

“The Housing Accelerator Fund (HAF) rewards local governments for pursuing changes that cut red tape and build more homes faster,” the organization said. “Participating communities developed and proposed Housing Action Plans in exchange for federal funding.”

Banff has been approved for approximately $4.7 million through the program, with funding tied to achieving housing targets based on increased development activity. CMHC said the town’s plan is expected to support the creation of 120 additional housing units beyond baseline projections.

Among the policy changes credited with increasing development interest is the removal of on-site parking requirements for new housing projects, a move intended to reduce costs and improve financial viability. Developers previously faced significant expenses associated with building underground parking in a land-constrained environment, with costs reaching roughly $100,000 per stall.

The town has said eliminating those minimums was necessary to encourage new housing, particularly higher-density developments and secondary suites.

To date, Banff has received multiple funding installments, including nearly $1.2 million in March 2026, which CMHC said reflects progress in implementing its Housing Action plan.

“Growth resulting from HAF is measured by the number of permitted housing units approved during the HAF agreement, compared to a baseline anchored in the community’s historical growth,” CMHC said.

That focus on permits rather than completed units highlights the gap between policy-driven progress and housing delivered on the ground. While the current pipeline suggests increased momentum, most projects remain in early stages and some may not proceed, meaning the number of homes ultimately delivered could fall short of the headline figure in a community with limited room to grow.