Potential Red Deer Zoning Changes Create Huge Opportunity for Investors and Developers
- Wayne Hillier
- May 22
- 3 min read
By Wayne Hillier, Real Estate Investing Masters
May 22, 2025 | Red Deer, Alberta
Big changes are coming to Red Deer — and smart investors are paying close attention.
Red Deer investor-focused realtor Krystal Kromm explains the recently awarded $12M Housing Accelerator Fund grant could open up game-changing opportunities for developers and real estate investors alike in Red Deer, Alberta.
What’s Changing in Red Deer?
For years, Red Deer has been known as a more restrictive market when it comes to infill and densification. But over the past year, the city has launched a multi-phase zoning overhaul that could change the entire landscape.
Key Highlights from the First Phase:
Simplified residential zones (down from 11 to 9)
Increased building heights
Reduced lot frontage and side yard requirements
New Direct Control (DC) zoning that allows suites in duplexes (previously not permitted)
These changes are already live and create more flexibility for infill and value-add strategies — especially for investors interested in legal secondary suites and duplex conversions.
4 Units “As-of-Right” Could Be Next
Red Deer has been awarded a $12M Housing Accelerator Fund grant from CMHC. To access the full funding, council must approve zoning changes that would allow 4 units as-of-right citywide — meaning no special permissions or rezonings needed.
If adopted, this would:
Eliminate red tape for adding up to 4 units on residential lots
Remove public consultation requirements
Reduce or eliminate parking minimums
Bring Red Deer in line with progressive cities like Edmonton
But there’s a catch. The city hasn’t committed yet, and the council vote could go either way. A municipal election is set for October 2025 — and that council will determine Red Deer’s future direction.
“If you’re an investor who’s written Red Deer off for development, it may be time to start paying attention again.”— Krystal Kromm, Red Deer Investor-Focused Realtor
8 Units Near Transit? That’s on the Table Too.
One of the longer-term Housing Accelerator requirements is that Red Deer must also explore allowing up to 8 units on lots within 800m of high-frequency transit routes and transit hubs.
That means properties near transit corridors may soon be eligible for multi-unit infill development — including fourplexes, stacked townhomes, and even small apartment buildings.
This change would put Red Deer on the map for serious infill developers looking to build missing middle housing in a growing Alberta city.
What Should Investors Do?
Krystal’s advice was clear: pay attention now.
If you own property in Red Deer or you’re considering buying, here are a few investor strategies to explore:
Land banking: Buy a large corner lot or a property near a transit route and hold it for potential upzoning
Duplex + suite: Look for side-by-side duplexes in open neighborhoods and apply under DC zoning
Near Polytechnic: Target areas near Red Deer Polytechnic that may lift caps on secondary suites
Future-proofing: Run your numbers assuming today’s use, but be ready to optimize tomorrow
Final Thoughts
Red Deer is positioning itself as a city ready for smart growth. Investors who understand the zoning roadmap — and act before the floodgates open — stand to benefit significantly.
Stay engaged. Get involved in the municipal conversation. And if you're buying in Red Deer, make sure your realtor understands the zoning updates and how to navigate applications and city approvals.
For help, follow and connect with Krystal Kromm on social media. She’s one of the top investor-focused realtors in the region.
Listen to Today’s Episode:
Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier
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