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: laneway housing

  • The problem of Erie Terrace (and why Craven Road has one really long fence)

    On the east side of Toronto is a north-south street called Craven Road. It runs from Queen Street in the south to Danforth Avenue in the north. It’s an odd street in that there are only homes on one side of it — the east side. The west side is fenced off. No garages. No laneway suites. Just one long fence separating Craven Road from the backyards belonging to the homes on neighboring Ashdale Avenue. Given that Craven Road is a real city street with things like services and a name, you might be wondering, as I did, why this condition exits. Surely the people on Ashdale Avenue would be better off if they took proper advantage of their “through lots.”

    What gives?

    Turns out there is a reason for this and it dates back to the beginning of the 20th century. Before 1923, Craven Road was actually called Erie Terrace. It began its life as a smaller laneway outside of the city and was initially home to a “shacktown.” The street was a kind of linear slum, housing new immigrants and providing a place for people to cheaply throw up whatever they could afford to build.

    For a variety of reasons, Erie Terrace eventually became a problem and the City decided that it would be best to widen the street from its varying 18 foot width to the then standard 33 feet. The widening work was authorized in 1911. But as is always the case, there were a few problems. Who would pay for it? The City would pay for a bit of it, but the expectation was that the residents along Erie Terrace would also chip in. And since Erie Terrace was technically a one-sided street, they were in effect being asked to pay double what was typical at the time. Usually the burden would get split across both sides of the street.

    There was also a socioeconomic question. The residents on Ashdale Avenue were thought to be wealthier than those on Erie Terrace and so they supposedly wanted the squalor out of their backyards. The City also had concerns that residents along Ashdale would use this double frontage to do wild and crazy things, such as build garages, sheds, and backyard cottages. Clearly there would be no room for such oddities after the widening.

    I’m not sure which problem proved to be the thorniest, but ultimately a solution was found. Erie Terrace would be widened, but the City would retain a small sliver of land on the west side of it and erect a wooden fence in perpetuity. This would keep both groups separate and ensure that the folks on Ashdale — who had contributed some of their land, but not any money — didn’t get use of the road. And it has remained this way for over a century.

    If you ask me, it seems silly to keep this fence up. This is an ideal street to infill with laneway suites and other missing middle-type housing. But I’m sure I’m not the first person to stumble upon this east end anachronism. For a more detailed history lesson on the Craven Road fence, click here.

  • A YouTube channel about simple living and small homes

    I just subscribed to Kirsten Dirksen’s YouTube channel. She makes videos about simple living, self-sufficiency, and small homes, among other things. She has nearly 1.3 million subscribers and her videos have almost 500 million views. I think many of you will really enjoy her channel.

    The above video is about an apartment in Lapa, Lisbon that was renovated by architect João Gameiro. Originally constructed in 1819, the top floor space had been pretty badly neglected. João renovated it by striking, what seems to me like, the right balance between old and new.

    Some of the other homes featured on her channel include a laneway house in Toronto, a tiny floating home in Berlin, and an off the grid cabin in Joshua Tree.

  • Tacos, snowstorms, and laneway suites

    Few things go as well together as tacos and snowstorms. And so that’s exactly what I did for lunch today given the awesome — I love snow — storm that we’re having in Toronto this weekend. The garnish you’re seeing below is grilled cactus. Dave, the owner of Playa Cabana Taqueria, grows it on location and uses it for special dishes like this one here. If you haven’t been, I would highly recommend it. They’re located at 21 St. Clair Avenue East.

    In addition to tacos, I also spent the morning with Gabriel Fain Architects working on our upcoming laneway suite collaboration. Some of you may remember that our previous laneway project was refused at the Committee of Adjustment back in 2017. Well now that laneway suites are permissible as-of-right, it’s time to get going. We are not planning to seek any variances from what is currently allowed.

    But if you’re thinking about building your own laneway suite, there are still a number of issues that you might run into depending on your property. Servicing, proximity to a fire hydrant, access, and trees are maybe some of the most common. I know that the city is working to resolve / streamline some of these complications, as the objective is truly to build laneway suites across the city.

    As Gabriel and I work through our project this year, my plan is to write about it here on the blog. And hopefully when the project is complete, the posts will serve as a kind of guide for homeowners. These suites are really setup to be built by individual homeowners, as opposed to by developers. If you don’t already email subscribe to this blog and are interested in learning more, sign up here.

    In the meantime, if you have any questions about laneway suites, there are a number of experts in the city, including Gabriel Fain Architects and the folks over at Lanescape.

  • Minimum project size — how small is too small?

    Many, or perhaps most, developers I know have a minimum project size that they will work on. That’s why you’ll hear people say, “No, that project is too small. I need at least X square feet or Y number of units.” Given that smaller scale development such as laneway housing and “the missing middle” are so in vogue today, I thought I would discuss some of the reasons why scale matters.

    But first, it’s worth mentioning that “laneway suites,” as we have structured them here in Toronto, are intended to be built by individual homeowners and not by developers. The lots can’t be severed and most lots will yield less than 1,000 square feet. So this is a bit of a unique circumstance. As most of you know, I am a big supporter of this initiative.

    When you get into larger developer-led projects, it’s a different ball game. For one, it’s hard to even find sites. And good luck if you need to deal with multiple owners as part of an assembly. Most landowners have pricing expectations that do not even remotely align with “missing middle” level densities.

    But assuming you’ve been able to find land at a reasonable price, you still have to contend with the fact that projects have a lot of fixed costs, as well as diseconomies of scale. In other words, there are schedule, cost, and resourcing considerations that won’t change no matter how big or small you go. It’s still going to take this long and cost this much, and you’re still going to need a set of humans to manage it through.

    This can then create a situation where there’s not enough margin for error. The project is simply too small to absorb any shocks, such as an unforeseen delay or an unforeseen groundwater concern that is now adding millions to your project budget. There’s a lot of risk with development and it’s prudent to have contingency room. That’s harder to do with smaller projects.

    The other problem developers run into with smaller projects is that the construction subtrades also tend to think of them as smaller projects. They have their own set of fixed costs and margins to worry about. So unless you happen to catch them with an opening in their schedule, you run the risk of them telling you they’re too busy or them giving you a stinky price, which is just another way of them saying they don’t want the job.

    On top of all this, there’s minimum project size inflation. If capital is not a constraint, there’s a tendency to want to do bigger projects (see above). And because the cost of everything keeps going up, it’s simultaneously getting harder and harder to make smaller projects pencil; unless you, maybe, go ultra luxury and ultra exclusive. But that’s kind of the opposite goal of this whole “missing middle” movement, is it not?

    Photo by JOHN TOWNER on Unsplash

  • Toronto approves city-wide expansion of laneway suites

    This a big month for laneway (housing) advocates in Toronto. Last week, City Council voted in favor of expanding the policy provisions for laneway suites to all Neighbourhoods within the city. (Neighbourhood is a defined term in the city’s Official Plan.)

    Previously, the policies — which allow laneway suites to be built as-of-right — only applied to the Toronto & East York Districts. Here’s a copy of the recent staff report in case you would like more information.

    On Monday, my friend Alex Sharpe (of Lanescape) was on BNN Bloomberg talking about why this is a good thing for the city. Alex and the rest of the team at Lanescape have been instrumental in these policy changes.

    If you’re a Toronto homeowner with a property that fronts onto a laneway, I would encourage you to consider this opportunity. It’s a way to increase the value of your home and it’s a way to create more rental housing in this city.

  • Laneway suites all across the city

    As of August 2018, the City of Toronto has allowed laneway suites (accessory dwelling units) to be built as-of-right in the Toronto and East York area of the city (subject to meeting some criteria).

    This was a tremendous step forward for the city. And I know a number of people who are currently taking advantage of these new planning permissions.

    Toronto is now looking at expanding these permissions across the entire city and they have just started their community engagement phase. The first public meeting took place today and the next three will be taking place over the course of this month. Click here for the when and where.

    This is a natural extension of the policies that have already been put in place around laneway suites and I’m excited to see this moving forward.

    For those of you who already own property in Toronto & East York and are considering building a laneway suite, there are two programs that you should be aware of.

    The first one allows eligible property owners to defer development charges on the new secondary dwelling unit for up to 20 years. This is meaningful. And the second is a $50k forgivable loan if you make the laneway suite an affordable rental for at least 15 years. (The cap is the City of Toronto Average Market Rent.)

    I still remember what happened when I tried to build a laneway house almost 10 years ago. I was told, by the city, that a house cannot be built behind another house. I knew that would change. Now look at how far we’ve come.

    Image: Lanescape

  • Neon popup gallery at Junction House

    I met Mark Garner, who is the COO and Executive Director of the Downtown Yonge BIA, about five years ago. We met because of our shared passion around Toronto’s laneways. At the time, you weren’t allowed to do what we now call laneway suites. Housing was not to be built on our rear streets. But thanks to champions like the Yonge BIA, Lanescape, the Laneway Project, a number of local Councillors, and many others, a lot has changed over the last five years.

    As luck would have it, Mark and I reconnected at the beginning of this year because of another shared interest: neon. The Downtown Yonge BIA has been working for over five years to establish a permanent home for the neon signs and lights that are slowly (or perhaps quickly) disappearing from Toronto’s streets. The goal is to found Neon Museum Toronto. And I am so impressed by their dedication to this cause. You should see what they have collected so far.

    Given the obvious connection to Junction House, we decided we were overdue for another fun project. So today the team is excited to announce that — in collaboration with both the Downtown Yonge BIA and Neon Demon Studio — the Junction House Sales Gallery (at 2720 Dundas Street West) will be hosting a Neon Popup Gallery from April 12 to 14. blogTO has already covered the event, here.

    It is open to the public. And entry is free. But it is coming to you for one weekend only. So get your camera ready and come by between 11AM – 9PM.

  • Tiny Tower in North Philadelphia

    ISA Architects recently completed a project in North Philadelphia called Tiny Tower.

    It is a 6-level, 1,250 square foot single family home built on a small 12′ x 29′ lot. That’s about the footprint of two parking spaces. It feels like a house you might find in Japan.

    Its siting is on a secondary street, akin to a laneway here in Toronto. As you can tell from the above picture, the adjacent parcels are largely undeveloped and/or used for parking.

    The height of the house is 38 feet and the section looks like this:

    The kitchen is in the basement (along with a light well). The living room is on the main floor (entrance to the house shown below). The third level is a workspace. And the rest of the floors are bedrooms. There’s also a rooftop patio. All of the circulation happens on one side of the house.

    I don’t consider 1,250 square feet to be a small house and so this post is not about that. “Tiny Tower” does, however, feel like an accurate name.

    I like these kinds of projects because they are about taking something with little perceived value — in this case a small parcel of land — and creating something cool.

    That’s how you create the most value. You have to discover and do things that most other people are overlooking.

    Images: ISA Architects

  • 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.

  • World’s most diverse city-region

    For those of you who aren’t going to be in Toronto next week, you can stop reading now and check back tomorrow. For the rest of you, next week is The Future Cities Canada Summit, which will be taking place from November 7 – 9. Full schedule, here.

    Day 1 equals the Urban Land Institute Symposium 2018, which is all about Toronto urbanism. The tagline is: “Explore the urban frontiers of North America’s fastest growing, and the world’s most diverse city-region.” 

    A big part of day 1 will be bus tours around the city. And one of those tours is going to be focused on Toronto’s laneways. I am a speaker on that tour and the bus will be stopping at Junction House to talk about the laneway houses that we plan to release as part of the project.

    But there’s much more to this summit than just laneway housing.