What is a laneway home?

A laneway home is a smaller, self-contained residence built in the backyard of an existing home, typically facing a back lane or alley. These detached dwellings are fully functional, with their own kitchen, bathroom, living space, and entrance. They’re designed to fit within the existing lot without subdividing the property.

In Vancouver, BC, laneway homes have become an increasingly popular solution to rising housing demands and limited urban space. The City of Vancouver was one of the first in Canada to legalize laneway housing in 2009, encouraging more flexible, sustainable living options within established neighborhoods.

Laneway homes are incredibly versatile—they can generate rental income, house extended family, provide independent space for adult children, or act as a private office or guest suite. With proper design and planning, they offer a smart way to maximize property value while contributing to gentle densification in the city.

 The benefits of a laneway home include increased property value, potential rental income, multi-generational living options, flexible use of space for guests or home offices, and maximizing land utilization in urban areas. Additionally, laneway homes offer a sustainable housing solution, as they promote smart densification in established neighborhoods without compromising the existing character of the community.

For some homeowners, a laneway home becomes their primary residence, allowing them to rent out the main house as an income-generating property—an especially appealing strategy in high-demand markets like Vancouver. Whether used for personal living, family support, or as a long-term investment, laneway homes provide unmatched flexibility and value while making better use of existing land.