Toronto is in the midst of a housing evolution. With rising real estate prices, a growing population, and shifting generational preferences, homeowners are turning to innovative solutions to increase both livable space and property value. Among these, Toronto garden suites have become one of the most popular and practical additions.
Thanks to recent bylaw changes, building a garden suite—an independent residential unit in the backyard of a primary home—is now easier and more attractive than ever. Whether for multigenerational living, rental income, or a private workspace, garden suites offer flexibility in a city where space is a premium.
So, where should you consider building or investing in one? Below are the best garden suite neighbourhoods in Toronto for 2025, factoring in zoning approval, lot sizes, accessibility, and long-term value.
What Is a Garden Suite?
A garden suite is a detached residential unit built in the backyard of an existing home, separate from the main dwelling but still on the same lot. These self-contained structures often include a kitchen, bathroom, bedroom, and living space.
Unlike a Toronto laneway home, which is built adjacent to a laneway, garden suites don’t require direct lane access, making them viable in more neighborhoods.
Why Garden Suites Are Booming in Toronto
The City of Toronto officially approved bylaws supporting garden suites in 2022, and in 2025, we’re seeing the full effects of that decision. As affordability continues to challenge families and investors alike, Toronto garden suites offer a smart way to unlock the hidden potential in your backyard.
Here’s why more people are investing in garden suites:
- Affordable multigenerational housing for elderly parents or adult children
- Passive rental income for homeowners
- Sustainable infill housing that reduces urban sprawl
- Customized space for home offices or studios
But not every neighborhood is created equal when it comes to garden suite development. Let’s explore the top five areas where garden suites are thriving in 2025.
1. East York – A Backyard Builder’s Dream
Why it’s ideal: Large lots, quiet streets, strong community vibe.
East York has become a top pick for homeowners and developers looking to build garden suites. Unlike downtown Toronto, East York offers wider lots, deeper backyards, and fewer zoning complications. Many properties also have back-alley access, which simplifies construction and service connections.
Garden suite Toronto cost: In East York, building a quality 1-bedroom suite ranges from $275,000 to $350,000 in 2025, depending on finishes and utility hookups.
Bonus: Strong demand for rentals makes it a lucrative investment location.
2. The Junction – Creative, Flexible, and In Demand
Why it’s ideal: Progressive zoning, high rental demand, and artsy appeal.
If you’re looking for a balance of creativity and practicality, The Junction should be on your list. It’s one of the best garden suite neighbourhoods for homeowners who value community spirit. The City of Toronto has received interest in garden suite applications from this area, especially along tree-lined residential streets near Keele and Dundas.
Garden suite Toronto cost: Expect to spend around $300,000 to $375,000 for a 600–800 sq. ft. unit.
Bonus: The Junction attracts young professionals, making it a prime location for furnished rentals or Airbnb-style garden suites.
3. Leslieville – Urban Charm Meets Rental Goldmine
Why it’s ideal: Strong real estate appreciation and walkability.
Located in Toronto’s east end, Leslieville offers stylish Victorian and Edwardian homes with generous rear lots—perfect for garden suites. It’s also a neighborhood that tenants love for its trendy cafes, parks, and transit accessibility. Whether you’re building for family or looking for rental yield, Leslieville garden suites are in hot demand.
Garden suite Toronto cost: Higher land values mean you might pay $325,000–$400,000 for design and construction, but rental income often justifies the upfront cost.
Bonus: Great for developers aiming for long-term ROI through capital appreciation.
4. High Park – Nature, Space, and Prestige
Why it’s ideal: Deep lots, mature trees, and luxury appeal.
High Park isn’t just one of Toronto’s most beautiful areas—it’s also garden suite-friendly thanks to its abundance of large lots and laneway access. This neighborhood appeals to families, professionals, and downsizers who want to live in nature but stay connected to the city core.
Toronto laneway home builders have already made significant inroads here, and garden suites are the next logical step.
Garden suite Toronto cost: High-end designs can run from $375,000 to $500,000 due to zoning review, architectural requirements, and high construction standards.
Bonus: Properties here see significant resale boosts when a legal garden suite is added.
5. Scarborough – Affordable Entry into Garden Suites
Why it’s ideal: Lower land costs and higher ROI potential.
If you’re priced out of downtown, Scarborough offers a fantastic opportunity for affordable garden suite builds. Many bungalows in areas like Birch Cliff, Bendale, and Wexford have large rear yards and simple layouts, making construction smoother and faster.
Garden suite Toronto cost: Some of the most budget-friendly builds in the city, starting from $250,000, depending on location and customization.
Bonus: Ideal for first-time investors or families looking to expand without relocating.
Key Considerations Before Building a Garden Suite
Even in the best garden suite neighborhoods, you’ll need to evaluate certain factors before breaking ground:
- Zoning Requirements: Most neighborhoods require your main property to meet specific size, depth, and setback conditions.
- Lot Size & Access: A larger lot with a wide side yard and laneway access simplifies design and utilities.
- Tree Protection & Heritage Rules: Older neighborhoods may have tree protection bylaws or heritage property designations.
- Permit Timelines: While the city has streamlined approvals, expect 3–6 months from submission to final permit in most cases.
Working with an experienced architect or builder who specializes in Toronto garden suites can help you navigate these complexities.
What’s Driving Demand in 2025?
Toronto’s housing market continues to evolve with changing demographics. Millennials are entering homeownership later, while aging Boomers want to downsize without leaving their neighborhoods. Meanwhile, students, newcomers, and remote workers are all fueling rental demand.
Garden suites respond to these trends by offering:
- Private, affordable living spaces in existing neighborhoods
- Flexible use as guest houses, offices, or short-term rentals
- Equity growth for homeowners looking to boost property value
For anyone looking to enhance livable space while building wealth, there’s no better time to explore a backyard build.
Final Thoughts
Garden suites are more than a trend—they’re a solution to many of Toronto’s housing challenges. As city policies evolve and demand continues to climb, the value of building or investing in a garden suite is clearer than ever.
Whether you’re looking to house aging parents, earn rental income, or simply future-proof your property, these Toronto garden suites offer endless possibilities.
So, if you’ve been dreaming about turning your backyard into a thriving, self-contained space, now is the time to explore your options. With the right plan and location, a garden suite could be your smartest investment in 2025.
FAQ’s
Q1: What is a garden suite?
A: A garden suite is a detached residential unit built in the backyard of a main home. It includes essential amenities and serves as a private, secondary dwelling on the same lot.
Q2: Which Toronto areas allow garden suites?
A: As of 2025, most low-rise residential zones across Toronto allow garden suites, including East York, Scarborough, The Junction, Leslieville, and High Park, subject to specific zoning and lot conditions.