As urban centers like Toronto continue to face population growth and housing affordability challenges, city planners are increasingly turning to innovative housing solutions. Among the most discussed options are Garden Suites and Laneway Homes—two forms of secondary dwellings that offer creative ways to increase density without changing the character of a neighborhood.
While these housing types might seem similar at first glance, they differ in several key ways, including their location, access, design considerations, and zoning regulations. If you’re a homeowner, developer, or investor looking to expand on your existing property, understanding the difference between these two infill housing options is essential.
Let’s explore the unique features of Garden Suites and Laneway Homes, compare their benefits and limitations, and help you decide which one may be right for your needs.
What Are Garden Suites?
Garden Suites—sometimes referred to as backyard homes—are detached residential units built in the rear yard of a single-family or semi-detached home. Unlike laneway houses, these units do not require direct access to a public laneway. This makes them a viable option for a much broader range of residential lots.
The City of Toronto officially adopted policies to permit Garden Suites in early 2022, following the success of the laneway housing program. These suites are designed to offer self-contained living spaces, typically including a kitchen, bathroom, living area, and one or more bedrooms.
Key Features of Garden Suites:
Built in the backyard of a primary residence
Do not require a rear laneway
Can have separate addresses and utility meters
Often used for rental income or multigenerational living
Subject to size, height, and setback regulations
Garden Suites allow homeowners with deep or wide lots to build a legal, rentable dwelling while preserving privacy and maximizing land use.
What Are Laneway Homes?
Laneway homes, as the name suggests, are built on lots that back onto an existing laneway. These homes are also standalone, self-contained structures, but have specific access and servicing requirements due to their location.
Laneway homes Toronto have become increasingly popular since the city launched its Laneway Housing Initiative in 2018. Their appeal lies in transforming underutilized laneway spaces into vibrant residential communities while retaining the charm of existing neighborhoods.
Key Features of Laneway Homes:
Must have direct access to a municipal laneway
Typically face the laneway instead of the main street
Require rear yard setback and fire access compliance
Often, two stories with a compact footprint
Great for boosting the rental supply or housing family members
For homeowners in older Toronto neighborhoods with a laneway behind their property, building a laneway home can be an excellent way to contribute to the city’s infill housing strategy.
Key Differences Between Garden Suites and Laneway Homes
Though both fall under the umbrella of secondary dwellings, several differences distinguish Garden Suites from Laneway Homes:
| Feature | Garden Suites | Laneway Homes |
|---|---|---|
| Access | Backyard access from the main property | Requires direct access to a laneway |
| Zoning Requirement | Available to more lots (no laneway needed) | Limited to lots with laneway backing |
| Servicing | Usually shares services or connects through the main dwelling | Requires separate utility access through the laneway |
| Design Flexibility | Typically limited in size and height | Can have more vertical space if setbacks allow |
| Privacy | Tucked into the yard, more secluded | Faces laneway with more exposure to the street |
While Garden Suites offer more flexibility for homeowners without a laneway, laneway homes often provide more independent and street-facing residences.
Pros and Cons of Garden Suites
✅ Pros:
Available to a wider range of properties
Ideal for aging parents or adult children
Offers rental income without sacrificing privacy
Increases property value
Easier to maintain than large apartment buildings
❌ Cons:
Limited by lot size and setback rules
May reduce backyard space and green area
Parking access can be challenging
Building permits and design restrictions still apply
Pros and Cons of Laneway Homes
✅ Pros:
Utilizes the underused laneway space effectively
Ideal for long-term rentals or guest houses
Enhances laneway safety through more visibility and lighting
Can increase community density with low visual impact
❌ Cons:
Requires property to back onto a qualifying laneway
May require upgrades to the laneway infrastructure
More complex servicing requirements (water, sewage, hydro)
Construction access can be limited depending on the laneway width
Cost Comparison
While exact costs vary by size, materials, and location, both Garden Suites and Laneway Homes can cost anywhere between $250,000 to $450,000+ to build in Toronto.
Laneway homes tend to cost more due to additional servicing requirements and access constraints, while Garden Suites may be slightly more affordable on average. However, both options offer excellent long-term returns through rental income or increased property value.
Which Option is Right for You?
Here’s a quick decision guide:
Choose a Garden Suite if:
You don’t have a laneway
You want to keep development simple and cost-effective
Your backyard is large enough to support a structure with setbacks
Choose a Laneway Home if:
Your lot backs onto a qualifying laneway
You want the unit to face a public road (ideal for tenants)
You are willing to invest more in utility hookups and design complexity
In either case, working with an experienced architect and city planning consultant is recommended to ensure you meet all zoning, fire safety, and construction codes.
The Future of Infill Housing in Toronto
As Toronto strives to address housing shortages and affordability issues, policies promoting secondary dwellings like Garden Suites and Laneway Homes are only expected to grow.
These infill housing solutions:
Increase rental stock without building high-rises
Allow homeowners to support multigenerational living
Contribute to gentle gentrification in low-rise neighborhoods
Support green, walkable communities by keeping residents near transit and amenities
In the years ahead, we can expect further relaxation of zoning laws, faster permitting processes, and even financial incentives for homeowners building these types of dwellings.
Final Thoughts
Whether you’re a homeowner looking to accommodate family, earn passive income, or maximize your property’s potential, both Garden Suites and Laneway Homes Toronto offer compelling solutions. While they share similarities, the key differences in access, design, and legal considerations mean one may be more suitable for your lot than the other.
Take the time to research your property’s zoning eligibility, consult with professionals, and consider your long-term goals. With proper planning, you can unlock new possibilities—and play a part in solving Toronto’s housing puzzle, one backyard at a time.
FAQ
Q: Are garden suites the same as laneway houses?
No, garden suites are built in the backyard without requiring laneway access, while laneway houses are constructed adjacent to a public laneway and must meet separate access and zoning criteria.
Q: Which is better: a laneway or a garden suite?
It depends on your property layout and goals. Garden suite