Toronto has been making great progress when it comes to allowing more housing in its low-rise neighborhoods. We now allow laneway suites, garden suites, multiplexes, and soon we'll allow 6-storey apartments. But interestingly enough, there is one small part of the city that is looking to regress. This past summer, council asked planning staff to bring forward a zoning by-law amendment to remove garden suite permissions for some of the properties backing onto Craven Road, near Danforth and Coxwell.

Here's a community consultation flyer that went out to residents and that shows the affected properties:

We've spoken about Craven Road before. It's a relatively odd street with a unique history. Its most obvious characteristic is that it's a kind of single-sided street. For the most part, there are homes on the east side of the street, but no homes on the west side. On the non-home side there is typically a garage, or the longest municipally-owned fence in the city. Here's some of the backstory on Craven Road's infamous fence (which occurs on a stretch further south), and below is what the study area in question looks like today:

So why remove the garden suite permissions here? The answer is to block housing. The people who live on Craven Road like it the way it is and don't want anyone to build new housing on the other side of the street. What's interesting about this is that it roughly mirrors what happened over a century ago. We couldn't figure out how to broker a deal between two adjacent streets and so we just said "screw it, let's build a really really long fence and call it a day."

Today we're saying, "yeah, we really need more housing in the city, but I dunno, somebody might get upset here." There is nothing sacrosanct about the old garages, or the fence, that line the west side of Craven. It is a street, proximate to a major subway station, that is missing homes on one entire side. It's low hanging fruit for infill housing. In fact, there's an easy argument to be made that garden suites aren't nearly enough density for a location like this. We should be encouraging a lot more.

But this is just my opinion. If you'd like to share yours, the City of Toronto is hosting a community meeting this week on September 19, 2024 from 7 - 830 PM. To participate, register here.

Some of you might remember that Toronto City Council approved new garden suite policies earlier this year. Garden suites (also known as accessory dwelling units) are kind of like laneway suites but without the adjacent lane.

Unfortunately, these new policies were subsequently appealed by a group of Resident's Associations, and so they haven't been in force. Thankfully, the Ontario Land Tribunal has just dismissed this appeal:

What this means is that, as of today, you're now free to build a garden suite in the City of Toronto. So hire an architect and file for a building permit -- it's go time. If you need any referrals, please feel free to reach out.

The Ontario Land Tribunal is often criticized for its ability to overrule local communities on land use matters such as these. But this is a good example of why it is needed and why it is important to have some kind of neutral arbitral.

Because these sorts of decisions should not be based on what any one individual or group thinks; these decisions should be based on what makes for good planning and what makes the most sense for the broader city and region.

Invariably, this is going to piss some people off. But in my mind, it's kind of like that asshole teacher you used to have. Sure, you hated him/her at the time, but in retrospect you end up appreciating what they were trying to do to help.

This could be a bad analogy.

Marty over at Laneway Housing Advisors published this listing in his newsletter today. It's for an entitled lot at 78 Gladstone Avenue in Toronto that has been approved (by way of a minor variance) for 6 units. Five units in the front where a house currently sits and one unit at the back in a standalone laneway suite. Though it also happens to be a corner lot and so the laneway suite isn't really "in the back".

It's listed for $2.5M. And according to the description, you can build about 5,500 square feet (4,200 sf in the front with a 1,300 sf laneway suite). This ask translates into a land cost that is just over $450 per buildable square foot, which is far more than what high-density land typically trades for in the city right now. This is usually the case for smaller low-rise sites.

To help put this figure into some kind of context, Bullpen Consulting published in their latest insights report that the average high-density land price in Q4-2021 was $135 per buildable square foot in Toronto (416 area code only). Of course, averages only tell you so much. To truly evaluate the feasibility of a site like this, you'd need to create your own pro forma and do your own residual land value calculation. The value of development land depends on what you can build on it.

If you were to do that, I suspect that you would discover at least two things: 1) you would find it challenging to make the numbers work, particularly for rental housing, and 2) you would quickly realize that this sort of "missing middle" housing isn't, in its current form, some undiscovered bastion of housing affordability.

Part of the problem is that these 6 units are not being delivered on an as-of-right basis. Somebody had to go out and entitle the land in order to secure these permissions. That means that time and money were spent and that the current owner is now rightly seeking a margin for their efforts. But if we collectively believe that this is an appropriate and sensible form of housing, then this should not be a necessary step in the whole process. Especially for only 6 units.

All of this being said, we know that Toronto and many other cities around the world are taking a hard look at this issue. And that there is a groundswell of interest in allowing more housing in our low-rise communities. It's going to be a battle -- just look at how Toronto's new garden suite policies have now been appealed by various resident's groups. But I'm certain that we'll get there, just like we are getting there with laneway housing and other types of ADUs.