Impact of higher energy efficiency standards on housing affordability in Alberta

As a result of changes to provincial and national building and energy costs, the impact of increasing energy efficiency standards on housing affordability has been questioned. Determining housing affordability is a complicated process. This report presented the results of a costing analysis completed for upgrades of EnerGuide 80 levels of energy efficiency in homes in Calgary and Edmonton, Alberta. The elements of residential construction were identified. In order to better understand the cost impact of energy efficiency upgrades on a home, pricing data was obtained. Costing elements that were examined included housing price indexes; construction material price indexes; unionized trade wages; and land value. Specifically, the report presented the new housing price index analysis using material and labour costs. An analysis of energy efficiency improvement was then presented in terms of lifecycle costs (capital costs and life cycle costing results). It was concluded that although the price of labour and materials is increasing, the value of land is the primary driver for rising house prices. The price of housing is strongly correlated to the price of land and not the price of labour or materials. In addition, moving to EnerGuide 80 levels of energy efficiency for housing in Alberta made homes more affordable for homebuyers by lowering their total monthly housing costs. 4 tabs., 3 figs., 3 appendices.