Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: house for sale

  • Exclusionary zoning cuts both ways

    Here is Wikipedia’s definition of exclusionary zoning:

    Exclusionary zoning is the use of zoning ordinances to exclude certain types of land uses from a given community, especially to regulate racial and economic diversity. In the United States, exclusionary zoning ordinances are standard in almost all communities. Exclusionary zoning was introduced in the early 1900s, typically to prevent racial and ethnic minorities from moving into middle- and upper-class neighborhoods. Municipalities use zoning to limit the supply of available housing units, such as by prohibiting multi-family residential dwellings or setting minimum lot size requirements.

    This is a common way to think about it. Prohibiting multi-family residential is a way to try and keep renters away. And mandating minimum lot sizes is a way to ensure that lots don’t get subdivided and that nobody builds homes of, you know, lesser value.

    It’s more or less a way of setting a minimum bar, which is why the term exclusionary zoning is used. If you don’t meet this minimum bar, you are excluded.

    Many of you will know my views on this (related post, here). But for the purposes of today’s post, consider this question: Should there also be an upper bound? In other words, should there be things like maximum lot sizes?

    Manhattan Beach, California seems to think so, which is why when Rob DeSantis bought three adjacent lots in 2000 for $13 million and proceeded to build a 12,640 square foot home — one that is currently on the market for $150 million — the City reacted by forming a “Mansionization Committee.”

    And ultimately they decided, through the passing of a new ordinance, that mansions of this fortitude should not be allowed in Manhattan Beach. It’s just too much.

    So it turns out that exclusionary zoning actually cuts both ways. You can be too poor for a particular community. Or, you can be too rich.

  • Laneway house on the market for $2,845,000

    I was looking at this laneway house for sale in Toronto today. It’s located near Queen and Bathurst. It has 3 bedrooms and 3 bathrooms and is about 2,331 square feet (that looks to include a basement). The lot appears to be just over 13′ wide. And the asking price is $2,845,000.

    Single family homes aren’t typically considered on a per square foot basis, but if you do the math here, it works out to be around $1,220 psf. The property previously sold in 2017 for $805,000, which was prior to it being redeveloped. So it likely traded based on land value.

    When Toronto first started considering modern laneway houses, some people thought that only individuals of questionable moral fiber would want to live in one. But today, there are countless examples of some pretty remarkable laneway houses. 

    And in some cases you might need about $3 million or so.