{"id":827616,"date":"2026-07-26T18:08:19","date_gmt":"2026-07-26T18:08:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/827616\/"},"modified":"2026-07-26T18:08:19","modified_gmt":"2026-07-26T18:08:19","slug":"laneway-homes-a-way-for-affordable-housing-multi-generational-living-in-calgary","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/827616\/","title":{"rendered":"Laneway homes a way for affordable housing, multi-generational living in Calgary"},"content":{"rendered":"

For Eugene Blanchard\u2019s daughter and her partner, the search for a starter home began in Calgary, expanded to Edmonton and then even beyond Alberta\u2019s borders to the Maritimes and Ontario.<\/p>\n

But homes that checked the right boxes didn\u2019t fit their budget during their hunt about five years ago, recalled Blanchard.<\/p>\n

Over time, the young couple\u2019s search ended in Blanchard\u2019s own backyard.<\/p>\n

\u201cIt made a lot of sense,\u201d said the 69-year-old Calgary resident. \u201cTear down the old garage, build a laneway house for pretty much the cost of a very nice condo and we don\u2019t have to pay the condo fees.<\/p>\n

\u201cWe don\u2019t have a homeowners association except for (an) old dad here.\u201d<\/p>\n

Laneway homes have been pitched as a solution to building livable spaces in tighter cities, with various levels of government offering incentives to encourage gentle densification in recent years \u2014 increasing housing supply and opening room for rental income. <\/p>\n

Another use case has also emerged as more older homeowners look for ways to age in their neighbourhoods while sharing space with their adult children without having to share a roof.<\/p>\n

\u201cThe idea of remaining where they\u2019ve lived and loved for so long is a really big factor (for the older generation),\u201d said Andrew Fishman, owner of Toronto-based boutique contracting firm Laneway Home Builders. <\/p>\n

\u201cWe see a big increase in people wanting to stay, you know, where they\u2019ve been.\u201d <\/p>\n

Fishman, who has been building laneway and garden suites for five years, said it also offers a chance at home ownership to many young Canadians who have been priced out of the market.<\/p>\n

\u2014<\/p>\n

How it works<\/p>\n

More cities and municipalities have joined the likes of Toronto and Vancouver in offering incentives and bylaw changes to push for more housing with multiplexes and laneway properties in an effort to increase housing supply. <\/p>\n

Fishman said he has fielded calls from construction companies and homeowners as far away as Edmonton, inquiring about projects and processes. <\/p>\n

It starts with a feasibility test, he said. That means finding out whether the property meets all the local requirements, such as zoning and emergency safety and whether a fire hydrant is nearby.<\/p>\n

\u201cBefore getting all excited and jumping into design, you have to know what you could do (with the space),\u201d Fishman said. <\/p>\n

Then, move on to site logistics: whether there are trees and electrical lines or poles that could impact your building application to the city. It\u2019s also important to understand the space you will work with and the need for drains, sewage, electrical and gas setup.<\/p>\n

\u201cOnce you\u2019ve gone through the site conditions, then the next step is to start the design process,\u201d Fishman said.<\/p>\n

For Blanchard, it took almost a year and several redesigns to land on a blueprint that would fit the City of Calgary\u2019s bylaws and his 30-foot-wide backyard.<\/p>\n

There wasn\u2019t enough space to build a two-bedroom apartment within the city\u2019s guidelines, so Blanchard decided to tear down his two-door garage for a one-car spot with a small workshop for him. <\/p>\n

That opened up space for a bigger unit: a living room with stairs leading up to the main bath, kitchen and two bedrooms. And the city\u2019s incentive program began right in time for construction, which could add up to more than $20,000 in savings.<\/p>\n

Blanchard, who worked with a local company, said it cost about $330,000 for a 1,440-square-foot home with a garage and workshop and will be ready to move in early next month. <\/p>\n

Construction costs can vary based on the city. For example, a range of $350 to $450 per sq. ft. is a starting point for such homes in Toronto sized between 645 sq. ft. and 1,300 sq. ft., while city permits and development fees could add to the bill, Fishman said. <\/p>\n

For Blanchard\u2019s Calgary home, it was about $230 per sq. ft. for the whole process, from getting the permit to having a move-in-ready apartment.<\/p>\n

\u2014<\/p>\n

A learning process<\/p>\n

Vancouver was the first city in Canada to allow laneway homes in 2009, so newer entrants may be able to learn from their example.<\/p>\n

Laneway homes are just unfamiliar at first, said Bryn Davidson, co-founder of Vancouver-based Lanefab, which has been building infill homes for almost two decades. <\/p>\n

\u201cThe first year or two, there\u2019s a lot of fear and anxiety. But after a couple of years, these things really become normal and people don\u2019t even notice them anymore.\u201d<\/p>\n

In Vancouver, the program also improved over time, he said. For example, the city increased its size limit on laneway homes in 2023, allowing up to 2,000 sq. ft. units with three bedrooms and two baths for families with kids. Previously, the city had a 1,000 sq. ft. cap.<\/p>\n

\u201cIn the past, (the city) had very stringent design guidelines that limited the size of the upper floor because they were worried about how big these things looked and the impact of shadowing on adjacent neighbours,\u201d Davidson said.<\/p>\n

The paperwork can also be difficult to navigate in the early going.<\/p>\n

\u201cIssues of appraisal, issues of financing, issues of insurance, issues of taxes,\u201d Davidson said. \u201cEach time (laneway homes) come into a new community, everybody in that community, with all their different jobs, has to figure out how to make that work.\u201d<\/p>\n

Hamilton, Ont.-based real estate investor Katerina Wagner and her husband saw potential in laneway homes at a time when the city didn\u2019t offer any incentives.<\/p>\n

They started adding units to three of their properties in 2022 in hopes of turning them into rental income or flipping them for more cash. But as they started looking to refinance or sell the properties, the couple realized those additional properties on the land didn\u2019t add as much to the overall home value.<\/p>\n

\u201cThe problem is the banks and appraisers did not know how to appraise it properly because there was nothing to compare it to yet,\u201d Wagner said.<\/p>\n

A slowing housing market also worked against them.<\/p>\n

\u201cI\u2019ll tell you right now that we did not recover our costs just because of the markets,\u201d Wagner said of one property she sold this year.<\/p>\n

Now, as the City of Hamilton began temporary incentives for additional units, Wagner said she wouldn\u2019t build another laneway home for the purpose of selling it and would continue renting out the two existing homes.<\/p>\n

She said laneways only work well for long-term homeowners, because otherwise, \u201cit\u2019s not an easy flip.\u201d<\/p>\n

For Blanchard\u2019s family, the new space means they\u2019re in for the long haul.<\/p>\n

\u201cI\u2019m hitting 70 next year,\u201d he said. \u201cThe idea is that my wife and I, we\u2019re going to be older and my daughter is eventually going to inherit our house.<\/p>\n

\u201cThat she\u2019ll start taking care of us.\u201d <\/p>\n

\t\tKeep it Factual<\/p>\n

Add CityNews Calgary as a trusted source on Google to see more local stories from us.<\/p>\n

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