Oriel Renovations’ Guide to Laneway Houses & Garden Suites in Toronto

As the demand for housing in Toronto continues to rise, innovative solutions like laneway houses and garden suites are becoming increasingly popular. These small but functional living spaces offer a blend of urban living, sustainability, and investment potential. If you’re considering building one, this guide will walk you through everything you need to know, from the basics to understanding costs, and why Oriel Renovations is your ideal partner in making this dream a reality.

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What Are Laneway Houses and Garden Suites?

Laneway Houses are small residential units built on pre-existing lots that back onto a laneway in Toronto. These homes are typically detached from the main house and offer fully independent living spaces with their own kitchen, bathroom, and entrance.

Garden Suites, on the other hand, are similar secondary units but are usually built within a garden or backyard space. While both offer private, functional living areas, they serve different purposes depending on the layout of your property in Toronto.

The Rise of Laneway Housing in Toronto

Over the past few years, Toronto has significantly shifted towards laneway housing and garden suites. These units have become a key solution for homeowners looking to maximize their property’s value, add living space, or generate rental income. With favorable city policies and a growing need for alternative housing options, laneway houses in Toronto are becoming a common sight in urban neighborhoods.

As Toronto continues to grow, the demand for alternative housing options like laneway houses and garden suites is expected to increase. The city’s commitment to densification and sustainable living makes this trend likely to continue for years to come.

Why Consider a Laneway House or Garden Suite?

Additional Income Potential

One of the most significant advantages of building a laneway house or garden suite is the potential to generate rental income. With Toronto’s housing market always in demand, these units can be rented out to long-term tenants, offering homeowners an additional revenue stream.

Expanding Living Space

Whether you need extra room for a home office, guest suite, or a private residence for a family member, laneway houses and garden suites offer flexible options to expand your living space without needing to move or renovate your existing home in Toronto.

Supporting Family Members

Laneway homes in Toronto provide an excellent solution for families who wish to keep aging parents or adult children close by while still offering them independent living arrangements. These secondary suites ensure privacy and convenience for both parties.

Increasing Property Value

Adding a laneway house or garden suite can significantly increase your property’s value. Not only do they offer more living space, but they also appeal to future buyers interested in rental opportunities or multi-generational living setups.

Sustainable Urban Living

Laneway houses and garden suites are also part of a broader movement towards sustainable urban living. They make efficient use of space in dense areas, reduce the need for suburban sprawl, and can be built with energy-efficient materials and designs, reducing the environmental impact of new constructions in Toronto.

Types of Laneway Houses and Garden Suites

Custom Designs by Oriel Renovations

We partner with the best designers and architects in the city to imagine a laneway house or garden suite that complements your home and enhances your living experience. Then Oriel Renovations brings the project to life with our building services!

Prefabricated vs. Custom Builds

While prefabricated units may seem like a quicker option, custom builds offer greater flexibility and long-term value. At Oriel Renovations, we specialize in custom construction to ensure your laneway home in Toronto aligns with your lifestyle and aesthetic preferences.

Detached vs. Attached Units

Laneway houses are typically detached, while garden suites can be either attached to or separate from the main house. Each option comes with its own set of benefits, depending on your property’s size, layout, and how you intend to use the space.

Eco-Friendly and Sustainable Options

Incorporating eco-friendly designs and materials can make your laneway house or garden suite more sustainable. Oriel Renovations offers a range of green building options, including energy-efficient appliances, solar panels, and sustainable building materials to reduce your environmental footprint.

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Parkdale, Toronto laneway house front entrance

Parkdale, Toronto laneway house backyard entrance

Parkdale, Toronto laneway house laneway view

Understanding the Costs

How Much Does a Laneway House or Garden Suite Cost in Toronto?

The cost of building a laneway house or garden suite in Toronto can vary depending on the design, materials, and other factors. On average, you can expect to spend between $350,000 and $750,000+ for a fully finished unit, although costs can be higher for custom luxury builds.

Single-Floor Toronto Laneway House Cost

A one-story or single-level laneway house or garden suite will likely cost between $350,000 and $500,000+ in Toronto. The final price will depend on scope, materials, and the complexity of the project!

Two-Floor Toronto Laneway House Cost

A two-story or multi-level garden suite or laneway house in Toronto will cost $500,000 to $750,000+.

Converted Garage or Shed Cost

Converting your Toronto garage or shed into a living structure or extra space could cost anywhere between $50,000 and $250,000+.

Cost Per Square Foot for a Toronto Laneway House

The average cost per square foot for a laneway house in Toronto typically ranges from $400 to $700. Factors like the size of the unit, quality of finishes, and complexity of the design will influence the final price.

Detailed Cost Breakdown

Design and Architectural Fees: Expect to pay around 10-15% of the total project cost for design and architectural services.
Permitting and Legal Expenses: Navigating Toronto’s permitting process can add another $10,000 to $20,000 to your budget.
Construction and Materials: The bulk of your costs will go towards materials and labor, which vary based on the size and quality of your laneway house or garden suite.
Utilities and Infrastructure: Connecting your laneway home to existing utility lines can cost an additional $20,000 to $40,000.
Landscaping and Exterior Finishes: Budget around 5-10% of your total cost for landscaping and exterior work to complete your project.
Taxes for Toronto Laneway Housing: Add 13% in Toronto, Ontario to your financial planning process to cover taxes.

Financing Options

Various financing options are available to help cover the cost of building a laneway house in Toronto. From home equity lines of credit to specialized loans for secondary units, Oriel Renovations can guide you through the best options for your situation.

How Oriel Renovations Helps You Stay on Budget

At Oriel Renovations, we understand that cost is a major concern for our clients. We work closely with you to establish a clear budget from the outset and ensure all expenses are transparent. Our team is committed to delivering high-quality results within your financial goals. Not only that, when you choose Oriel Renovations for your garden suite or laneway house, we go through our pre-construction process to come up with a fixed-price quote. That means, if you move forward working with Oriel Renovations for the build, you’ll have a solid price that you know will not change for building your laneway house!

Pros & Cons of Laneway Housing in Toronto

If you are considering adding a laneway home to your Toronto property, take a look at these pros and cons to see if it’s the right choice for you!

Pros of Laneway Homes

Additional Rental Income

Renting out a laneway house or garden suite provides homeowners with a steady source of rental income, making the investment worthwhile over time.

Increased Property Value

Adding a secondary unit can significantly boost the resale value of your property, making it more attractive to future buyers.

Multi-Generational Living

Laneway houses and garden suites offer the perfect solution for families looking to accommodate aging parents or adult children while maintaining privacy.

Maximization of Unused Space

Laneway homes make effective use of previously underutilized space, such as backyards or areas facing laneways.

Sustainable Living Options

Many laneway and garden suites are built with eco-friendly materials and designs, contributing to sustainable urban development.

Flexibility in Use

These units can be used as rental properties, guesthouses, or work-from-home spaces, adapting to changing needs over time.

Reduced Urban Sprawl

Laneway and garden suites help increase housing density in Toronto without contributing to suburban sprawl, promoting more sustainable city living.

Cons of Laneway Homes

High Initial Construction Costs

Building a laneway house or garden suite requires a significant upfront investment, often ranging from $350,000 to $750,000+ or more, but most would say it’s worth it to live in or have others live in their same neighbourhood.

Lengthy Permitting Process

While not always true, sometimes The complex permitting process in Toronto can delay projects. That’s why it’s important to have a partner like Oriel Renovations to handle all of that stuff for you!

Regulatory Challenges

Toronto’s zoning laws and regulations for laneway houses and garden suites can be restrictive, presenting hurdles for homeowners.

Maintenance Costs

As with any additional property, laneway houses require ongoing maintenance and repairs, which can add to the overall cost.

Impact on Privacy

Sharing a lot with another residence can lead to privacy concerns, especially when the secondary unit is rented out. However, if it’s being used by a family member, it may not be a concern at all!

Potential for Increased Property Taxes

Adding a secondary dwelling unit may increase the property’s value, leading to higher property taxes for the homeowner.

Disruption During Construction

While temporary, the construction of a laneway house or garden suite can cause disruptions, such as noise and restricted access to certain areas of the property.

Project Timeline: From Concept to Completion

1. Initial Consultation and Planning

This phase begins with a detailed consultation between you and Oriel Renovations. We discuss your vision, budget, and the scope of the project. Our team will assess your property’s eligibility for a laneway house or garden suite and provide you with a clear project roadmap.

Estimated Time: 2-4 weeks

2. Design and Architectural Phase

Our in-house design team works with you to create custom architectural plans that meet your needs and comply with Toronto’s building regulations. This stage includes revisions to ensure everything aligns with your goals and budget.

Estimated Time: 8-16 weeks

3. Permitting Process

Once the design is finalized, Oriel Renovations will manage the permit application process. This involves submitting detailed plans to the city and working through Toronto’s zoning and building by-laws. Approval times can vary depending on the project’s complexity and municipal workloads – The Committee of Adjustment is the biggest factor that could increase the time in this phase potentially adding up to 5 months to the process in some cases.

Estimated Time: 8-24 weeks

4. Construction Phase

Once permits are secured, construction begins. This phase includes site preparation, foundation work, framing, electrical, plumbing, and interior finishes. Running new services from your existing home to the laneway (generally a trench for running plumbing, gas, and electric) can increase this timeline in some situations. After that, regular inspections are conducted to ensure everything meets code requirements.

Estimated Time: 16-32 weeks

5. Final Inspections and Occupancy (2-3 Weeks)

After construction is complete, final inspections by city officials are necessary to confirm the project meets all building codes and regulations. Once approved, you can officially move in or rent out your new laneway house or garden suite.

Estimated Time: 2-3 weeks

6. Streamlining the Process with Oriel Renovations

Throughout the entire timeline, Oriel Renovations handles each step to keep the project on schedule and within budget. From design to permits to construction, we streamline the process, minimizing delays and ensuring a stress-free experience.

Total Estimated Time from Start to Finish: 36-47 weeks (8-11 months)

This structured approach helps ensure your laneway house or garden suite is built efficiently, with clear milestones along the way. Oriel Renovations is committed to delivering a high-quality build within these timelines, so you can enjoy your new space as soon as possible.

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Parkdale, Toronto laneway house, front window view of living room

Parkdale, Toronto laneway house, front entrance, wood accent wall

Parkdale, Toronto laneway house, living room with wood chairs and large window and kitchen

Parkdale, Toronto laneway house living room with wood accent wall and front room divider

Parkdale, Toronto laneway house modern kitchen renovation with white countertops

Parkdale, Toronto laneway house, stairs landing

Beautiful laneway house in parkdale, Toronto. Second floor bedroom bed and window

Navigating the Permitting Process

Building a laneway house or garden suite in Toronto requires navigating a detailed and sometimes complex permitting process. Toronto has specific zoning by-laws and regulations that must be followed to ensure your project is legally compliant. Here’s a breakdown of what to expect when seeking permits for your new laneway home or garden suite.

Permitting for Toronto Laneway Houses & Garden Suites

The City of Toronto allows laneway houses and garden suites on residential properties, but homeowners must first secure several permits. This includes a building permit, zoning clearance, and sometimes a Committee of Adjustment approval if the design doesn’t meet all zoning requirements.

Key Permits Required:

Building Permit: This ensures your project complies with Ontario’s Building Code.
Zoning Review: Verifies that your project follows Toronto’s zoning by-laws, such as setbacks, height restrictions, and lot coverage.

Understanding Toronto’s Zoning By-Laws

Toronto has specific zoning rules for secondary dwellings like laneway houses and garden suites. For example:

Minimum Lot Size: Your property must have adequate space and access from a public laneway or road.
Setbacks: Laneway homes must have minimum distances from lot lines to avoid encroaching on neighboring properties.
Height Restrictions: Laneway houses typically cannot exceed 2 storeys, though certain designs might require variances.
Parking Requirements: In some cases, Toronto’s zoning laws require that you maintain a certain number of parking spaces for your primary residence and secondary unit.

If your project deviates from any of these by-laws, you may need to apply for a variance through the Committee of Adjustment, which can add time and complexity to the process.

Required Documentation and Approvals

Before construction begins, you’ll need to submit various documents to the city, including:

Architectural Plans: Detailed drawings that show how the laneway house or garden suite will be built.
Site Plan: A layout of the property showing the placement of the new structure, landscaping, and parking.
Engineering Reports: These may be required for projects involving utility connections, water drainage, or structural stability.
Heritage Review: If your property is in a designated heritage area, you may also need approval from Toronto’s Heritage Preservation Services.

Submitting all required documents upfront can help avoid delays during the review process.

Common Challenges and How to Overcome Them

Navigating the permitting process can be complicated due to Toronto’s strict regulations. Some common challenges include:

Variances from Zoning By-Laws: If your project doesn’t meet all zoning requirements, you’ll need to apply for a minor variance, which can take extra time and might require attending hearings.
Utility Infrastructure: Laneway houses and garden suites must have proper connections to water, sewage, and electrical services, which may require upgrading your property’s existing infrastructure.
Environmental Considerations: In some cases, environmental assessments may be needed to address issues such as tree removal or soil stability.

At Oriel Renovations, we handle these challenges by ensuring your design meets as many regulations as possible, reducing the need for variances, and guiding you through every step of the process.

Assistance Provided by Oriel Renovations

Oriel Renovations offers full permitting support, helping you navigate Toronto’s zoning laws, submitting all necessary applications, and handling communications with city officials. Our team has years of experience working with Toronto’s building and zoning departments, ensuring your project gets approved quickly and smoothly.

By partnering with us, you can avoid the stress and confusion of the permitting process, and focus on creating the perfect laneway house or garden suite for your property.

Toronto Garden Suite Regulations

Directly from the City of Toronto

When constructing a garden suite in Toronto, several rules must be followed to ensure compliance. These suites are permitted in rear yards of residential properties not adjacent to public laneways and must adhere to zoning by-laws and Ontario Building Code regulations. Here are the key considerations:

Emergency Access: A clear, unobstructed path of 1 meter width is required, with a maximum 45-meter distance from the public street.
Tree Protection: No healthy, by-law protected trees should be removed during construction.
Size and Footprint: The maximum footprint is the lesser of 40% of the rear yard or 60 square meters, and total lot coverage by all ancillary buildings, including the suite, must not exceed 20%.
Height: Garden suites can reach up to 6 meters, depending on their distance from the main residence, and angular planes must limit their massing.
Parking: No car parking spaces are required, but a minimum of two bicycle spaces must be provided.
Permitted Uses: The suite can be used for living accommodations or home occupations, but short-term rentals are only allowed under specific by-law conditions.
Severances: These properties cannot be divided; garden suites are intended to function as rental units.

Click here to read the full document with garden suite regulations published directly by the city of Toronto at toronto.ca.

Features to Include in Your Laneway House

Here are some of the most popular features you should consider including in your laneway house or garden suite.

Additional Living or Office Space

Creating extra living or office space adds flexibility to your laneway house, making it ideal for guests, family, or work. Customizing this space ensures it fits your specific needs and enhances the unit’s functionality.

Passive Design for Energy Savings and Noise Reduction

Passive design strategies, like proper window placement and insulation, can significantly reduce energy consumption and enhance comfort. These features also minimize outside noise, making your laneway home quieter and more peaceful.

Heated Floors for Comfort and Energy Efficiency

Heated floors provide consistent warmth, reducing the need for bulky radiators or heaters. This energy-efficient solution keeps your home comfortable, especially during Toronto’s colder months.

Custom Built-In Storage

Built-in storage solutions help maximize space while keeping your home clutter-free. From under-stair storage to hidden pantries, these designs add functionality without sacrificing style.

Natural Light with Skylights or Privacy Windows

Skylights and privacy windows bring natural light into your laneway home without compromising privacy. These additions create a bright, open atmosphere while maintaining seclusion in urban areas.

Space-Saving Murphy Beds

Murphy beds allow you to save space by folding away when not in use, perfect for small areas. They provide a minimalist solution without sacrificing comfort for guests or daily living.

No-Step Entryways for Easier Access

No-step entryways improve accessibility for all ages and mobility levels. This feature enhances convenience and makes your home more attractive to a wider range of potential renters or buyers.

Native Plant Garden for Low Maintenance

A native plant garden is low-maintenance and eco-friendly, requiring less water and care. It adds beauty to your property while supporting local wildlife and biodiversity.

Under-Unit Parking and Storage

Maximize your property by building your laneway home over an under-unit parking area. This design provides off-street parking and additional storage without cluttering your living space.

Energy-Efficient Appliances and Fixtures

Energy-efficient appliances and fixtures reduce your environmental footprint and save on utility bills. Opt for energy-saving refrigerators, low-flow faucets, and efficient HVAC systems.

Outdoor Living Space

An outdoor space, like a patio or rooftop garden, extends your living area and offers a spot for relaxation or entertaining. It’s a great way to enjoy fresh air in a compact property.

Frequently Asked Questions

Here are some of the most frequently asked questions when it comes to laneway houses and garden suites in Toronto. You may have already seen some of these answers throughout our blog post, but this sums the most common ones up!

1. What is the difference between a garden suite and a laneway house?

Answer: A garden suite is a secondary dwelling unit located in the backyard of a property that doesn’t have direct access to a laneway, while a laneway house is built on properties that back onto public laneways. Both are self-contained residential units but differ in their placement on the lot.

2. Is my property eligible for a laneway house or garden suite?

Answer: For a laneway house, your property must back onto a public laneway, and there are specific lot size and zoning regulations. For garden suites, recent city by-law changes (2022) have expanded eligibility, allowing most residential properties to build them if they meet size, setback, and other zoning requirements.

3. How much does it cost to build a laneway house or garden suite in Toronto?

Answer: The cost can vary based on size, design, and materials but generally ranges between $300,000 to $500,000. This includes design, permitting, construction, and finishing costs. The overall price can fluctuate depending on the complexity of the project and customization.

4. How long does it take to build a laneway house or garden suite?

Answer: The entire process, from design to completion, typically takes 12 to 18 months. This includes time for design, securing permits, and construction. The permitting process alone can take 2 to 6 months depending on the complexity and zoning requirements.

5. Can I rent out my laneway house or garden suite?

Answer: Yes, you are allowed to rent out laneway houses and garden suites. Many homeowners use these units as rental properties to generate additional income, either as long-term rentals or short-term accommodations (though zoning regulations and rental restrictions may apply).

6. Do laneway houses or garden suites increase property taxes?

Answer: Yes, adding a secondary unit will likely increase your property’s assessed value, which could lead to higher property taxes. The exact amount depends on the size and value of the new unit and how it impacts your overall property assessment.

7. What are the zoning and by-law requirements for building a laneway house or garden suite?

Answer: Toronto’s zoning by-laws regulate the size, height, setbacks, parking, and access requirements for both laneway houses and garden suites. Each property must comply with these regulations, and any variances may require additional approvals or consultations.

8. Do I need a separate utility connection for my laneway house or garden suite?

Answer: Yes, laneway houses and garden suites typically require separate utility connections for water, electricity, gas, and sewage. In some cases, this may involve extending existing utility lines from the primary residence, which can add to the overall cost.

9. What are the financing options for building a laneway house or garden suite?

Answer: Financing options include using a home equity line of credit (HELOC), refinancing your mortgage, or obtaining a construction loan. Some homeowners may also explore government grants or incentives aimed at increasing affordable housing.

10. How do I start the process of building a laneway house or garden suite?

Answer: The first step is to consult with an architect or builder experienced in laneway housing or garden suites, like Oriel Renovations. They will assess your property’s eligibility, help you design the unit, and guide you through the permitting process.

Conclusion & Next Steps

Laneway houses and garden suites represent an exciting opportunity for Toronto homeowners to expand their living space, generate rental income, and contribute to sustainable urban development. While the process can seem daunting, Oriel Renovations is here to guide you every step of the way. From navigating zoning laws and securing permits to designing and building a beautiful, functional living space, our team ensures your project is completed on time and within budget.

Now that you have a comprehensive understanding of laneway housing and garden suites in Toronto, the next step is simple. Contact Oriel Renovations today to schedule a consultation and start planning your project.

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