Aug 20, 2025
What You Need to Know About Laneway Homes
Big Changes coming to housing in Vancouver. At Team Toly & Josie, we keep a close eye on how housing rules are changing in our city. Right now, Vancouver and nearby municipalities are making it easier to build and own “missing middle” homes, the types of housing that fit between condos and big single-family houses.
What Counts as an “ADU”?
You may have heard different names tossed around:
These are all forms of Accessory Dwelling Units (ADUs) - smaller homes built on the same lot as a main house. But they all pretty much mean the same thing, and can sometimes have different requirements or definition based on the municipality.
Vancouver: Big News on the Horizon
Since 2009, Vancouver has allowed laneway houses (small backyard homes), and more recently, multiplexes (up to 6 or 8 homes on a lot).
Right now, laneway houses can’t be sold separately from the main house, they can only be rented out, in order to increase rental pool. Exception would be Character‑retention projects when the owners who invest in updating a Character home are allowed to build ADU and sell them separately.
But this is likely to change soon. City Council has asked staff to explore allowing subdivision or strata of laneway houses. In plain English: you could one day sell a laneway house as its own home, with its own title and mortgage.
This could make financing easier, create more options for first-time buyers, and help seniors unlock equity without selling the family lot.
Burnaby: More Flexible Options
Burnaby launched its program last year.
You can now build 3–6 homes on a single lot, depending on the lot size and how close you are to transit.
Secondary suites count as units & can be sold separetely.
Typologies allowed: duplex + single-family, triplex, courtyard style, up to 6-unit multiplex.
Unlike Vancouver, you don’t need a lane to qualify to build an ADU. The Fee structure simplified and charged per unit, with credits for existing dwellings. Great flexibility and streamlined process.
Coquitlam: The Newest Player
As of summer 2025, Coquitlam now allows up to 4 units on most lots, with bigger lots able to handle more.
They’ve made the process clearer by using standard building plans to speed things up.
Fees are charged per unit, making costs more predictable for homeowners.
Features like tandem parking and standardized modular designs (via BC Housing) may expedite permitting.
Why This Matters for You
These changes are designed to open up more possibilities for homeowners and buyers:
More choice: Multiplexes and laneway homes give families, downsizers, and first-time buyers more housing options.
Separate ownership coming soon: Vancouver looks set to allow selling laneway homes independently, a major shift that could help with affordability.
Financial flexibility: Seniors and multi-generational families may soon be able to tap into property value without complicated co-ownership setups.
Neighbourhood feel, more homes: These aren’t high-rises. They fit into existing neighbourhoods while gently adding more places to live.
The Bottom Line
Housing in Metro Vancouver is changing quickly. Vancouver is on the cusp of allowing strata ownership for laneway homes and ADUs, mirroring existing flexibility for multiplexes. Burnaby and Coquitlam are already offering highly flexible, density-supportive frameworks. What used to be “just a single-family lot” could soon support multiple homes, and in some cases, homes that can be sold separately.
Curious how these new options might benefit your situation, whether you're downsizing, investing, or planning for multi-generational housing? 👉 Contact us today - we’ll help you understand your options and plan your next move with confidence.
PS. Thank you to the Vancouver's custom home experts Smallworks for consulting us on this topic
