Garden Suite vs Laneway House: Which Is Right for You in Toronto?

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Garden Suite vs Laneway House

With Toronto’s focus on increasing housing options, both garden suites and laneway houses have emerged as popular solutions for homeowners looking to add secondary units. While these two types of dwellings may seem similar, they have key differences that make each suited to specific needs and properties. This guide will help you compare the costs, benefits, and limitations of garden suites and laneway houses in Toronto.

A blue garden suite located in Toronto

What Is a Garden Suite?

A garden suite is a self-contained residential unit built in the backyard of a property, separate from the primary home. Unlike laneway houses, garden suites can be constructed on lots without a laneway, making them more flexible for many homeowners.

Key Features:

  • Can be built on properties without direct access to a laneway.
  • Often used for housing family members or generating rental income.
  • Typically located in the backyard, surrounded by landscaping.

 

Custom Laneway House in the trees in toronto

What Is a Laneway House?

A laneway house is also a detached secondary unit, but it is specifically built on properties that back onto a laneway. These units make use of underutilized space near the rear of the property and have been a popular choice in Toronto for years.

Key Features:

  • Must have access to a public laneway.
  • Often feature modern designs and direct street-like access.
  • May appeal to renters due to independent access and privacy.

Cost Comparison: Garden Suite vs. Laneway House

Construction Costs

Type Cost Per Square Foot Total Cost (Average 700 Sq. Ft.)
Garden Suite $400 – $600 $280,000 – $420,000
Laneway House $450 – $650 $315,000 – $455,000

Laneway houses are generally more expensive due to the need for enhanced utility connections and structural reinforcements to accommodate laneway access.

Additional Costs

Expense Garden Suite Laneway House
Design and Permits $10,000 – $20,000 $15,000 – $25,000
Utility Connections $10,000 – $30,000 $20,000 – $40,000
Landscaping $5,000 – $15,000 $5,000 – $20,000
Access Improvements Minimal (if any) $10,000 – $30,000

Advantages of a Garden Suite

  1. Greater Location Flexibility: Suitable for properties without laneways.
  2. Lower Utility Connection Costs: Simpler to connect to the main house’s existing systems.
  3. More Landscaping Options: Located in the backyard, garden suites integrate seamlessly with outdoor spaces.
  4. Family-Oriented: Ideal for aging parents or young adult children who want proximity without sharing a home.

Modern garden suite in Toronto

Advantages of a Laneway House

  1. Independent Access: Tenants or family members can enjoy private entrances directly from the laneway.
  2. Prime for Rentals: Privacy and separation make it highly attractive to renters.
  3. Optimized Space Usage: Makes effective use of often-overlooked laneway spaces.
  4. Potential for Two Stories: Laneway houses often feature two stories, providing additional living space.

Challenges to Consider

Garden Suite Challenges

  • Backyard Space: Requires sufficient backyard area, which may limit homeowners with smaller lots.
  • Privacy: The unit’s proximity to the main house may impact the privacy of both occupants.

Laneway House Challenges

  • Laneway Requirement: Limited to properties with rear laneway access.
  • Higher Costs: Increased expenses for permits, utility connections, and structural designs.
  • Fire Access: Must comply with strict fire lane access and emergency response regulations.

Zoning and Permitting Differences

Both types of units must adhere to Toronto’s secondary unit bylaws, but the requirements differ slightly:

  • Garden Suites: Easier permitting process for properties without laneway access, subject to minimum lot size and setback rules.
  • Laneway Houses: Must meet fire access requirements and provide sufficient laneway clearance.

Small modern garden suite in Toronto

Rental Income Potential

Both garden suites and laneway houses offer excellent rental income opportunities. However, the choice depends on the renter’s preferences:

  • Garden Suite: Appeals to families or individuals seeking a quiet, landscaped environment.
  • Laneway House: Attracts tenants who value privacy and independent access.

Rental Rates in Toronto:

  • Garden Suite: $1,500 to $3,000 per month
  • Laneway House: $1,800 to $3,500 per month

Which Option Is Right for You?

Choose a Garden Suite if:

  • Your property does not have laneway access.
  • You prefer lower construction and utility connection costs.
  • You want a seamless blend with your backyard landscaping.

Choose a Laneway House if:

  • Your property backs onto a laneway.
  • You prioritize rental income and tenant privacy.
  • You want a modern, two-story design with street-like access.

Conclusion

Both garden suites and laneway houses are excellent investments that enhance property value and create additional living space. The decision ultimately depends on your property’s layout, budget, and personal goals.

At Garden Gate Homes, we specialize in creating tailored solutions for your needs. Whether you’re considering a garden suite or a laneway house, our team is here to guide you through the process. Contact us today to bring your vision to life!

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