Via Wikipedia, the definition of a laneway house is “...a form of detached secondary suites in Canada built into pre-existing lots, usually in the backyard and opening onto the back lane.”

Laneway homes are ideal for homeowners looking to create a secondary residence on their existing lot, either for personal use or rental profit - but with more compact quarters than you would have in a traditional residential house. The key to compact living is all about maximizing your living space in limited quarters and utilizing every bit of space to its best use with efficiency and quality of life in mind. The experts at Connect Realty are here to fill you in on everything you need to know about compact living and laneway houses. 

Laneways houses, also known as laneway suites are residential units that are set apart from primary residences. They tend to be situated toward the rear of a property’s yard and are connected to a public laneway, hence the name. These are generally most commonly found within urban settings, but are also in rural environments. 

Laneways houses can offer benefits such as: 

• Potential rental income 
• Housing for adult children, in-laws and parents 
• Allows for additional residential units within the neighbourhood
• Put existing infrastructure to use
• By creating residentially-purposed spaces out of existing or new laneway units, you gentrify areas that might otherwise be underused, bringing in more activity and enhancing local safety and energy as a result 

Zoning regulations 101: laneway house ownership 

The City of Toronto allows for the construction of laneway houses within the city, to be built on residential property lots that qualify for eligibility by sharing a property line with a public lane. The specific by-law requirements for this type of build can be found via this link. 

In Ontario, the province offers support and encouragement as far as laneway house building as a welcome solution to address the growing housing needs in urban settings. 

Some of the zoning standards that you may encounter as you plan your laneway house build include: 

• Permitted land uses
• General requirements for lots connected to a public laneway
• Minimum lot sizes
• Minimum sizes and maximum heights for residential units
• Minimum or maximum lot coverage allowances by built structures
• Lot length, lot width and setback
• Parking
• Tree protection

Your local planning department can help you address laneway house building queries such as: 

• zoning requirements and building standards for laneway units that apply to your property
• any other applicable agreements and approvals that are required before you can build a laneway house 
• What the requirements will be as far as licenses and registrations if you plan to rent out your laneway house unit

A 2021 map of existing public laneways in Toronto

Per Toronto.ca: 

As of May 2021, over 200 Building permit applications for new laneway suites have been submitted to the city.

For questions regarding building permit applications please contact Toronto Building staff at 416-397-5330.

The cost component: cost considerations for laneway living 

Just a few of the cost considerations to factor in when exploring laneway living include the cost to build, planning approvals, permissions for rezoning, costs to demolish any existing structure(s) that interfere with your building plans, and any additional permits required.  

One of the primary considerations for laneway building is to confirm that the area you intend to build allows for this kind of structure. This involves doing some research to ensure laneway construction is permissible in your desired area. In the City of Toronto, for example, there are designated areas where you can - and cannot - build a laneway house. The project specs will need to meet specific criteria for approval, and in the case of those who are eligible, there are some programs available to help make laneway house building a more affordable venture. 

While building costs will vary significantly, the general consensus tends to be that costs will range from $250,000 and up, depending on factors like size, scope of design, and materials. Considering that laneway houses can only be built out in accordance with the size allowance of the lot that it’s on, so as a result, these structures tend to be smaller and more compact. 

If you’re also building a new house - it makes sense to factor in your laneway house plans at that time. In doing this, you can avoid the added costs of upgrading sewer and electrical, which will otherwise be necessary if you’re building a laneway house separately. 

Unique designs and architectural possibilities with laneway homes 

One of the design benefits in building a laneway house is the abundance of options as far as making the unit your own with unique design choices and the ability to design it according to your specific wants and needs. 

With the growing popularity of laneway homes, there are now more companies than ever geared toward helping homeowners to achieve their goals as they build out their ideal laneway home units. 

For example, Lanescape Architecture + Construction is a design company dedicated exclusively to laneway homes and garden suites. 

Fyi: “garden suites” are similar to laneway suites but defined as detached secondary dwellings situated toward the rear yardage of a main residence, designed as modest separate residential units. These units are intended to blend organically within the neighbourhood and are given special permissions that forgo the laneway housing criteria requiring that the lot has frontage onto a public laneway. 

Companies like this can offer insight as to what style of laneway suite is ideal for your needs, assisting clients from conception to design to building. 

Ultimately, laneway suites are still a relatively new concept in Toronto, but rapidly growing in popularity due to housing shortage needs and the added value a secondary residential unit will bring to your property on resale. 

Curious to know more about trending topics like this and the many communities that Connect Realty serves?