Laneway homes offer path to affordable housing and multigenerational living across Canada

Laneway homes are gaining traction across Canada as a solution to housing affordability and as a way for aging homeowners to stay in their neighbourhoods while sharing space with adult children.

For Eugene Blanchard's daughter and her partner, the search for a starter home began in Calgary, expanded to Edmonton and then beyond Alberta's borders to the Maritimes and Ontario, but homes that fit their budget proved elusive about five years ago. The young couple's search eventually ended in Blanchard's own backyard. "It made a lot of sense," said the 69-year-old Calgary resident. "Tear down the old garage, build a laneway house for pretty much the cost of a very nice condo and we don't have to pay the condo fees."

More cities and municipalities have joined Toronto and Vancouver in offering incentives and bylaw changes to encourage housing through multiplexes and laneway properties to increase supply. Andrew Fishman, owner of Toronto-based boutique contracting firm Laneway Home Builders, said he has fielded calls from construction companies and homeowners as far away as Edmonton inquiring about projects and processes.

The process starts with a feasibility test to determine whether the property meets local requirements such as zoning, emergency safety and fire hydrant proximity. Then comes site logistics: assessing trees, electrical lines and poles that could impact a building application. Understanding drainage, sewage, electrical and gas setup is also critical.

For Blanchard, it took almost a year and several redesigns to land on a blueprint fitting Calgary's bylaws and his 30-foot-wide backyard. The city's zoning guidelines meant he could not build a two-bedroom apartment, so he tore down his two-door garage to make a one-car spot with a small workshop. That opened space for a bigger unit with a living room, stairs leading up to the main bath, kitchen and two bedrooms. Calgary's incentive program provided over $20,000 in savings. The project cost about $330,000 for a 1,440-square-foot home with garage and workshop and will be ready to move in early next month.