The Success of Laneway Suites in Other Cities

Laneway suite designed by Iredale Architecture, on Vancouver’s west side. PHOTO BY ALEX BARRERA

Toronto is not the first city to adopt Laneway Housing as a solution for affordable housing and gently increasing density, Vancouver and Edmonton have also successfully employed the concept. Vancouver’s by-law allowing the construction of laneway suites dates to 2009.

Laneway housing in Vancouver was conceptualized based on many of the same opportunities we see here in Toronto. Large cities in Canada have seen increases in population as well as the cost of housing. Laneway housing helps to gently increase density in neighbourhoods that are predominantly comprised of single-family homes. This way, we can increase density without radically changing the character of these neighbourhoods.

Laneway housing has become extremely popular in Vancouver for numerous reasons. It provides a number of advantages and opportunities for property owners. Not only are laneway houses helpful to the city as a whole, there is also a great financial case for building a laneway house.

In Vancouver, it typically costs $350 000 to $400 000 to build a laneway house. The laneway house could be rented for $3000 a month, creating a 100% return on investment[1]. Homes with laneway suites also typically have a higher resale value.

Laneway houses provide not only an opportunity to add rental housing and income, they can also be used to house relatives or as a home office, like one man in Toronto has done[2]. David Shedd originally intended to build a guest house or rental unit, but the COVID-19 pandemic shifted his plans. The 1400 square foot unit cost in total $550 000 to build. The ground floor acts as a garage, whereas the upper floor is a 2-bedroom suite with a kitchen, washroom, and washer dryer. While the space is currently being used as an office, it has a lot of potential.

The success of laneway housing in Vancouver, as well as early projects in Toronto, is very promising for this initiative. We can both increase our supply of housing, and hope homeowners financially.

[1] (Freimond, 2019)

[2] (Yu, 2020)

Laneway Homes: Toronto's Historic Lanes Offer Great Potential

Image Source: Unsplash

A Short History of Toronto’s Laneways

Behind the historic homes in Toronto neighbourhoods from The Beaches, to Riverdale, to Roncesvalles, the Annex, and Bloordale is a network of something relatively unique to Toronto’s development: a network of laneways. When I was growing up, my grandmothers house had a lane, and when we would visit, I would often play with kids in the neighbourhood in the back laneway. But why does Toronto have laneways? The reason behind it is simple: cars. As the automobile became ubiquitous in cities, a parking crisis shortly arose. Houses in old pre-World War II Toronto neighborhoods were built closely together, often with no room for a driveway or parking pad in the front. Thus, the residents in these neighbourhoods opted to give up a part of their backyards to construct laneways for parking. This is the origin story of the laneway, but where does that leave us today?

The Potential of Laneways

Over the past 60 or so years, housing prices have continued to rise in Toronto. With a looming housing crisis and shifting attitudes towards mobility in cities, the laneway home has risen to prominence. Laneway home offer a myriad of benefits to both homeowners, neighbourhoods, and renters. Laneway suites present an opportunity to make better used of sometimes unused space, particularly for homeowners who choose to forgo owning a car.

For homeowners, a laneway suite is a great way to generate passive income via a rental property. As well, a second suite would also make a great option for housing aging parents or other family members. A laneway home will also surely increase the value of your property.

Despite the boom of condo construction, there is still a huge unmet demand for housing in and around downtown Toronto. Renters are being pushed to increasingly farther areas of Toronto and the GTA. Many homeowners oppose to larger apartment developments that could potentially disrupt neighbourhood character. As well as a lack of space for the development of apartment complexes in mature neighbourhoods, laneway housing offers a great compromise that allows neighbourhoods to gently increase density. Overall, laneway housing offers an abundance of opportunities for all Torontonians.

Interested in having a laneway home installed on your property? Contact us to schedule a consultation!