Wood foundation home sales make up less than 1% of total sales in Calgary each year. In rural Rocky View County and Foothills County, they account for roughly 1.5% of annual sales.
It’s a small percentage but we often get asked “Why does this listing look like such a good deal?” Or “Why hasn’t this one sold?“
We’re here to explain what a wood foundation is, the pros and cons, and what it could mean for your real estate investment.
A Permanent Wood Foundation (PWF) is a type of basement or foundation built with pressure-treated lumber instead of concrete. The preserved wood is specially engineered to resist rot, insects, and moisture when properly installed. Wood foundations were most commonly used in Calgary and throughout Western Canada from the late 1970s through the early 1990s. At the time, they were faster to build, more cost-effective than concrete, and offered better insulation.
Today, they’re less common, but many have lasted decades when properly maintained.
The biggest “issue” with PWF’s is perception. Many buyers and even some realtors are unfamiliar or uncomfortable with wood foundations. This can limit the pool of future buyers and potentially affect resale value. That doesn’t mean a wood foundation home won’t sell. It just means that when buyers have multiple options, they’ll often choose a concrete foundation unless the wood foundation home offers meaningful savings.
You might be surprised to know that homes with wood foundations exist in a wide variety of neighbourhoods in Calgary, from inner city communities like Hillhurst, Ramsay, Marda Loop and Killarney to subdivisions that were developed in the 1970’s and 1980’s like MacEwan, Oakridge and Woodbine. We see them in acreages all over Alberta as well.
It’s not always easy to spot a wood foundation when viewing a home – often the basements are fully finished and there is insulation and drywall covering the foundation walls. But we can generally see it on the property history so please check with us if you are ever unsure!
Wood foundations require regular inspection to ensure moisture isn’t entering and that protective systems such as grading, gutters, and drainage are functioning properly. While concrete foundations also require monitoring, wood demands more ongoing vigilance to prevent rot and insect damage.
James Groom from Kangaroo Home Inspections reiterated:
“From my perspective and experience, wood foundations aren’t inherently bad, but they are very unforgiving if they’re not designed, installed, and maintained properly. When built to spec with proper drainage, pressure treatment, and moisture control, they can perform well – but they don’t have the same margin for error as poured concrete. I always advise my clients to pay very close attention to site grading, exterior drainage, and any signs of moisture intrusion, because long-term performance really comes down to water management.”
From an insurance perspective, most providers will request confirmation of CSA certification to verify resistance to moisture, fungi, and mould, and to ensure the foundation meets National Building Code standards. They may also look closely at whether the structure rests on concrete footings versus wood footings, as this can influence risk assessment. If the home was owner-built rather than constructed by a licensed builder, coverage may be declined altogether. Another key factor insurers consider is life expectancy – since wood foundations are generally perceived to have a shorter lifespan than concrete, this can impact underwriting decisions. If proper documentation isn’t available, the insurer may require a professional inspection before offering coverage.
If you are house shopping and come across a PWF home, it would be good to have a conversation with your insurance provider before proceeding.
Another important consideration is financing. Although banks and mortgage lenders do lend on homes with wood foundations, they will likely require an engineer report for the foundation and they may want to see a higher down payment. You may not be able to get mortgage insurance so would need to put at least 20% down, which often comes with a slightly higher interest rate. The property will likely also need to have an appraisal and, because of questions on the lifespan, a lender may also want to have a shorter amortization time period. So this is a property type that we would absolutely NOT recommend buying without an adequately long financing condition period in order to make sure you have fully secured a mortgage that you are satisfied with.
Ultimately, whether or not a PWF home is right for you comes down to your comfort level, risk tolerance, and long-term plans. You can sometimes purchase these homes for 10+% less than a comparable home with a concrete foundation.
Like any major investment, especially one as significant as buying a home – we’re here to guide and support you every step of the way. Alongside our trusted team of inspectors, lawyers, mortgage brokers, and insurance providers, our goal is to help you make the best decision for you!
-Parker
