Laneway Homes Toronto

How Much Does It Cost To Build a Laneway House in Toronto?

The average house price in Toronto recently reached the million-dollar mark in 2021. If you’re looking to increase your property value even more, you may want to consider adding a laneway home. The benefits of laneway houses are numerous; they typically face onto an alley and can provide an ideal way to earn additional income by renting them out. Alternatively, they can be used as an in-law suite, for visiting guests and family, or even as your own living space while renting out your main home.

Adding a laneway suite to your property involves more than just construction; you must navigate through the proper channels and obtain the necessary permits. A detailed cost breakdown will help you understand the expenses involved, ensuring you are well-prepared for the investment.

Permits and Fees

The first thing you need to do is determine if laneway houses are permitted in your area of the GTA, as they are not allowed in all locations. If these types of buildings are legal in your neighborhood, you will need to comply with zoning and bylaw requirements and obtain a proper building permit from the City of Toronto. The cost of this permit typically depends on the size of the home you plan to build, with the current base rate being approximately $20.00 per square meter.

In addition to the building permit, you will need to pay additional fees for a residential unit and certification of plans. On average, the permit cost and fees for a 500 square-foot laneway house in Toronto would be close to $1000. This cost breakdown helps in planning your budget more effectively.

Laneway Home Builders in Toronto

Architecture and Engineering Costs

Unless you’re experienced in architecture and engineering, you’ll need to hire professionals for your laneway house design in Toronto. This could cost as much as $15,000 to $25,000 to develop feasible plans for the home. Ensuring the structural soundness of your laneway house is crucial, so this step cannot be skipped.

Working with a Design-Build contractor can streamline the process, as they manage all aspects of the design and engineering for you.

 

Construction Costs

The building process for a laneway house includes a base construction fee and several additional costs. For a 500 square-foot laneway house, you can expect to pay around $350,000 to $400,000. The laneway house construction costs in Toronto vary depending on the design and style, and can differ from one laneway house contractor to another. Additionally, the roof is typically an extra cost. Being aware of these variables will help you plan your budget effectively.

 

Survey Costs

Before beginning construction, the land may need to be properly surveyed, as some contractors require this step. In Toronto, the average price for a land survey is approximately $2,500. Ensuring that the land is accurately surveyed is a crucial part of the building process, helping to avoid potential legal and structural issues down the line.

 

Heating

Unless the laneway house is intended for summer use only, you’ll need to install a heating system, which could cost between $5,000 and $10,000 or more. Various HVAC options are available in Toronto, and while some systems may be cheaper to install, they might incur higher monthly operating costs.

It’s essential to consider both the initial installation expense and the long-term utility bills when choosing the best heating solution for your laneway house.

Custom Laneway Home Designs Toronto

Electricity

A laneway house in Toronto requires an independent electrical system separate from your main residence. Installing a new electrical system can be a significant expense, potentially costing as much as $20,000. This installation ensures that your laneway house is fully equipped with the necessary power for all its electrical needs, contributing to its functionality and comfort.

 

Water and Sewer

Another necessity in a laneway house is water and sewer and again, this needs to be independent from the main home. A simple system is approximately $7,500 while a more-complicated and larger one may be as high as $30,000. Ensuring a reliable and efficient water and sewer system is essential for the functionality and comfort of your laneway house.

 

Appliances/Furniture/Plumbing

Once your Toronto laneway home is built, you’ll need to outfit it with essential appliances and furnishings to make it a livable space. This includes items like a refrigerator/freezer, oven, sink, toilet, shower/bathtub, and necessary plumbing. Additionally, you might consider adding a dishwasher and washer/dryer, which can increase the rental value. Furnishing your laneway home properly ensures comfort and functionality, making it attractive for potential renters or personal use.

 

Landscaping

If you have the time, room, energy and money, you may also want to perform a little landscaping work around the building. This is especially true if you’re trying to attract potential renters. Of course, you may wish to do this on your own or you may decide to hire professional landscapers for an additional cost.

While a laneway house may seem like a small and simple home it’s no small task to build one though though. It’s basically a smaller version of a regular Toronto home and requires most of the same amenities, fees and costs etc. Whatever you can think of as a cost for a regular-sized home will more or less need to be included for a laneway house.

Additionally, it’s important to consider parking options, which can be a valuable feature for renters. While a laneway house may seem small, it requires most of the same amenities, fees, and costs as a regular Toronto home.

 

About Novacon Construction

Novacon Construction is a custom home builder and home addition contractor in Toronto. We specialize in large scale home renovation projects as well as laneway home construction in Toronto and throughout the GTA. Contact us today to learn more about laneway homes and to schedule a free consultation.

If you’re considering adding a laneway suite in Toronto, our expertise can help guide you through the process, from initial design to completion. Contact us today to learn more about the cost of a laneway house in Toronto and to schedule a free consultation.

Novacon Construction