City of Toronto has approved Garden Suites as of early February 2022.

Garden Suites will be good to add density and supply to Toronto’s real estate market. Affordable options will be available for tenants to rent which is good for the long term health of the real estate market as well as employers. Unaffordable housing would drive employees further out of the city making it difficult for them to commute to work and consider other employment options. It would be difficult for employers to attract employees if they have to live further away due to lack of affordability. Will Garden Suites solve the supply issue in Toronto’s real estate market? Highly unlikely, however any addition to supply of housing is welcome especially as Toronto’s & GTAs population continues to grow.

What Are Garden Suites?

Garden suites are located in the backyard of a house, detached from the main house serviced (water, sewers & utilities) from the main house. Unlike laneway houses, there is no requirement to access via a laneway. This will make it easier for more homes to qualify to build a Garden Suite. Garden Suites are also known as “coach houses”, “detached accessory dwelling units” or “granny flats”.

Here are some requirements by the City of Toronto to build a Garden Suite:

1. Minimum distance from the house is 5 m for a single storey and 7.5m for a two storey Garden Suite with a maximum height of 4 m for single storey and 6m for a two storey

2. Rear lot line setback is 1.5 m minimum

3. City will not allow injury or removal of mature trees

4. They can not be severed and sold as a separate property. The Garden suite title is part of the original house

Consult with an architect to navigate through the approval process.

Here are 3 reasons why Toronto homebuyers should want a Garden Suite in their backyard:

1. Family: Aging parents who want their independence and be close by their families who take care of them. I believe this option will be more in demand as less seniors want to be in long term care based on the last few years events. It is also an option for teenagers to move into “their own” space.

2. Income Property: An option for the Garden Suite to generate rental income to offset the cost of living in an expensive real estate market. Generating $2000 per month is equivalent to carrying a $450,000 mortgage. This is like buying a duplex but having the tenants live in a separate space for more privacy to the homeowners and more usable space than had the tenants lived in the basement.

3. Retirement: Homeowners might opt to rent the main house and move into the Garden Suite. This allows the homeowners to travel, go south for the winter or spend the summer up in cottage country and generate rental income from the main house.

Looking to buy a house and add a Garden Suite? Reach out.