Infill vs Suburban New Build: Cost, Lifestyle, and ROI in 2025
For Edmonton homebuyers in 2025, the sharpest divide in the market isn't just about budget—it's about geography and philosophy. Do you choose the "Infill"—a brand new modern home in a mature, central neighbourhood? Or do you opt for the "Suburban New Build"—a master-planned home in the expanding ring road communities?
Both options offer the allure of new construction (New Home Warranty, modern efficiency, smart tech), but their financial structures and lifestyle returns are radically different. This guide breaks down the true cost of ownership, the lifestyle trade-offs, and the long-term Return on Investment (ROI) for each asset class.
1. The Cost Equation: Sticker Price vs. True Cost
When comparing a $650,000 infill in Westmount to a $650,000 detached home in Secord, the price tag is the only similarity. The composition of that value differs significantly.
The Infill Cost Structure:
Land Value: In mature neighbourhoods, the land often accounts for 40-50% of the property's value. You are paying for the location scarcity. Proximity to downtown, restaurants, and major schools (U of A and Grant MacEwan) do come at a cost for infill Buyers.
Demolition & Abatement: If you are building custom infill, costs for demolishing the old structure and asbestos abatement can range from $20,000 to $40,000—a sunk cost that doesn't add to the appraised value of the new house.
GST: Remember that GST (5%) applies to the full purchase price of any new home. However, the GST New Housing Rebate may apply if the home is priced under $450,000, though few infills or condos for that matter qualify for anywhere near that amount. You can read more on the Government of Canada’s New Housing Rebate here.
The Suburban Cost Structure:
Land Value: In new suburbs (Windermere, Chappelle, Cy Becker), land typically accounts for 20-30% of the value. You are paying for the structure more than the dirt.
Hidden "Completion" Costs: Suburban showhomes often feature upgrades not included in the base price. Buyers must budget for:
Landscaping: Often not included. Expect to pay $10,000 - $20,000 for sod, trees, and fencing to meet architectural guidelines.
Window Coverings & Appliances: Frequently excluded in base builder packages.
HOA Fees: Many new communities (e.g., Summerside, The Orchards) have mandatory Homeowners Association fees to maintain amenities like splash parks or skating rinks.
2. Lifestyle Analysis: The 15-Minute City vs. The Commuter Hub
The Infill Lifestyle (Crestwood, Ritchie, Westmount):
Walkability: These areas score high (80+) on Walk Score. Residents can walk to independent coffee shops, schools, and grocery stores. This aligns with the City of Edmonton’s "15-Minute City" district planning.2
Mature Canopy: You get the benefit of 50-year-old Elm trees lining the street, a feature that new suburbs won't replicate for decades.
Infrastructure Risk: While the house is new, the city infrastructure (sewers, sidewalks) may be aging, leading to neighbourhood renewal construction projects (and potential tax levies) in the future.
The Suburban Lifestyle (Keswick, Edgemont, Laurel):
Modern Infrastructure: Roads, sewers, and playgrounds are brand new. There is zero risk of "neighbourhood renewal" assessments for decades.
Family Density: These areas are teeming with young families, making it easier for children to find playmates. However, schools are often over-capacity, leading to lottery systems for enrollment.3
Commute: Life is car-dependent. While the Anthony Henday provides access, commute times to the university or downtown can exceed 35-45 minutes during peak hours.
3. Zoning and Density: The "Garden Suite" Bonus
The most significant shift in 2025 is the full implementation of Zoning Bylaw 20001.
Infill Advantage: Mature lots often have rear lanes (alleys), which are essential for Garden Suites (garage suites). This allows an infill buyer to build a rental suite above their garage, generating $1,400+ in monthly income to offset their mortgage.4
Suburban Limitation: Many new suburban lots are "zero lot line" or lack rear lanes (front-attached garages). This physical layout often makes building a garden suite impossible or cost-prohibitive, limiting your ability to "house hack."
4. ROI and Resale Liquidity
Appreciation Profiles:
Infill: Historically, central land appreciates faster because they aren't making any more of it. An infill home in a prestigious neighbourhood is a "blue chip" asset. It is insulated from market fluctuations because the supply of lots is finite.5
Suburban: New communities face "supply risk." If you try to sell your 2-year-old home, you are competing against the builder down the street who is selling brand new homes with incentives. Suburban homes typically see slower appreciation until the neighbourhood is fully built out (5-10 years).
Rental Demand:
If you decide to rent out the property, infills near the University or Downtown command higher rents and attract professional tenants. Suburban homes attract families but typically have lower rent-to-price ratios.
5. The "Cash to Close" Comparison
Analysis: Suburban homes often have a lower "base price" but a higher "finished price" once you factor in the costs required to make the home livable and compliant with architectural controls.
Conclusion
The choice between Infill and Suburban is a trade-off between land value and house size.
Choose Infill if: You prioritize long-term appreciation, want a walkable lifestyle, and plan to utilize a garden suite for income.
Choose Suburban if: You want more square footage for your dollar, prefer a community with many young families, and want a turnkey home where every component (including the roads) is brand new.
Debating between a skinny home in Ritchie or a triple-garage in Windermere?
Connect with Ryan and the Real Living team today and we’ll help you run appreciation numbers for the neighbourhoods you are eyeing to ensure your investment matches your financial goals.
(https://www.edmonton.ca/city_government/urban_planning_and_design/zoning-bylaw)