Garden Suites & Laneway Housing Toronto

This is the most common question we get! The cost to build a garden suite in Toronto varies based on size, finishes, and site access, but you should generally budget between $350 to $450 per square foot for a turnkey project.

Unlike a simple renovation, this is building a standalone house from scratch. The price includes the foundation (and potential underpinning if near your main house), utility trenching (water/sewer/hydro), architecture, permits, and construction. While the upfront investment is significant, the ROI is often realized quickly through high rental income and increased property value. At IcyReno, we provide a detailed, itemized quote after a site visit so you know exactly where every dollar goes.

Absolutely. In fact, most of our clients build specifically for passive income. With Toronto’s rental market currently very tight, a newly built, modern 1-bedroom garden suite can typically rent for $2,300 to $2,700 per month depending on the neighbourhood (higher in areas like The Annex or High Park).

Because these units are brand new, energy-efficient, and detached (offering privacy), they attract premium tenants compared to dark basement apartments. Many homeowners find that the rental income covers the construction loan payments and leaves extra cash flow to help pay down the mortgage on their main property.

The difference comes down to your lot’s location. A Laneway Suite must be built on a lot that abuts a public laneway (common in Old Toronto, Rosedale, and Corso Italia).

A Garden Suite allows you to build a detached housing unit in your backyard even if you don’t have a laneway. This was a massive change in Toronto zoning bylaws recently, opening up thousands of properties in areas like Etobicoke, Scarborough, and North York to backyard housing. The construction quality and design process we use are identical for both; the only difference is the specific zoning rules we navigate for the permit.

Most residential properties in Toronto now qualify under “As-of-Right” zoning, but there are specific “deal-breakers” we check first. The most critical is the Emergency Access path. You typically need a clear, unobstructed path at least 1.0 meter wide and 2.1 meters high running from the front street to the backyard for firefighters.

We also check for Tree Protection Zones (TPZ). If you have a large protected tree in the backyard, we may need to adjust the foundation design or apply for special permits. As part of our service, we perform a feasibility study to confirm your eligibility before you pay for full architectural drawings.

This is where our expertise in underpinning and excavation shines. A Garden Suite needs its own connection to the city’s services. In most cases, we dig a trench from the main house to the new suite to extend water, sewer, and electrical lines.

We ensure that your existing water service is large enough (usually upgrading to a 1-inch pipe) to handle the extra bathroom and kitchen without dropping your water pressure. We also install separate hydro meters so your tenant pays their own electricity bill, keeping your operating costs low.

Building a home takes time, but we move as fast as the City allows. Generally, you should plan for 8 to 12 months for the entire process.

The Design and Permitting phase takes about 3-5 months, depending on how fast the City of Toronto reviews the application and if we need to navigate tree permits. The actual construction phase typically takes 4-6 months. We focus on “As-of-Right” designs to avoid the Committee of Adjustment, which significantly speeds up the permitting timeline compared to competitors who over-design.