The city of Brooks in Alberta has been facing a housing challenge that it claims to have addressed with a range of incentives that attracted builders from outside the area. With a population of about 17,000 people located 160 kilometers southeast of Calgary, Brooks is set to welcome over 200 new housing units this year. While this influx is significant for the modest-sized market, it is just enough to accommodate most residents who are currently living in overcrowded conditions, long-term hotels, or sharing accommodations with multiple roommates.
According to Lisa Tiffin, the development manager in Brooks, the city has experienced its most significant housing boom in two decades driven by a growing population, high demand, and soaring rents. Despite these factors indicating the need for construction activity, only seven new residential units were added in 2022, highlighting the severity of the situation.
To address the housing shortage, the Brooks city council introduced various incentives such as tax reductions for four years, fee-free permits, and discounts on city lots. As a result, housing starts surpassed the total from the previous three years combined and tripled in 2025.
In a broader context, Alberta witnessed a record of 55,000 home starts last year, as reported by the Canada Mortgage and Housing Corporation. However, a significant majority of these starts were concentrated in Calgary, Edmonton, or their surrounding areas, raising concerns about the lack of development in smaller markets. Scott Fash, the CEO of the Building Industry and Land Development Association (BILD) of Alberta, noted challenges for companies in venturing outside larger cities due to limited local development capacity.
Municipal support plays a crucial role in overcoming financial hurdles in smaller markets, according to Fash. Coordinated efforts between trade companies and developers might lead to the planning of large projects or combined constructions like townhomes to address the housing shortage in areas like Brooks.
The acute housing shortage in Brooks has led to a 10% population increase since the 2021 census, causing wait times for accommodations to double in recent years. Rent prices in Brooks surged by 33% over two years, making it one of the largest increases in Alberta outside of Calgary.
The favorable market conditions in Brooks have attracted the interest of both major and minor developers. Companies like Royal Development and Span West Building Corporation have ventured into the Brooks market, capitalizing on the financial incentives and the demand for new housing in the area.
To further expedite homebuilding and enhance housing affordability, development associations and politicians have advocated for streamlined permitting processes, tax breaks, and other supportive measures. The phased tax program in Brooks, following the province’s guidelines, exempts new homes from taxes in the initial years to encourage construction and boost the housing supply.
The city of Brooks views the investment in housing as a priority that benefits the community, even if it requires shouldering costs through the existing tax base. The city emphasizes the non-monetary advantages of having new housing options available for its residents.
