Families are building stylish homes in their backyard to combat housing market: 'It might be the best thing ever'

Canadians are getting creative to sidestep the country's housing crisis, building homes in backyards and alleys.

To ease the problem of a tight housing market, Toronto has allowed residents since 2022 to build these garden and laneway suites on their properties, The New York Times reported.

"It's a common conundrum in Canada's largest city, where a drastic inventory shortage and a ballooning population have set home prices skyrocketing," the newspaper stated.

The outlet detailed the plight of Joe and Rosalee Mihevc, who built a $350,000 house behind their home because they couldn't afford to move within the area but needed to downsize. The couple now have two stories and 1,300 square feet of living space behind their 3,000-square-foot home. Joe has even started a business after building most of the structure himself, helping other people with design, permits, and construction.

Another couple, Ryan and Risa Rohin, spent $313,000 on a modern 645-square-foot garden suite for his mother, Shoba Rohin.

"This is all a person needs," she told the Times. "And my grandsons knock on my door every night to invite me over. I feel so blessed."

Part of the problem is the cost of housing, which reached $920,000 in 2022. Last year, Toronto homebuyers spent $765,000 on average, 100% more than they did 10 years prior, according to the Times.

Another issue is that the city has too many single-family homes and not enough multifamily residences that are big enough. There has also been an influx of 800,000 people to Ontario, with a vast majority landing in the Toronto area.

While the garden and laneway houses offer one solution, there had been just 400 applications through December, per the paper. About 100 of the homes are built each year, and that could soon double.

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The city is also working to add 65,000 affordable housing units, including some above parking lots. Prefabricated units that can be built in nearly two weeks could help, too. In Alberta, building companies and an industry group are using robots to speed up construction as well.

"For several decades, all three levels of government stopped building housing," Mayor Olivia Chow told the Times. "We have to fix that by building more and building faster."

The garden and laneway suites are limited to 1,290 square feet plus 645 square feet for basements. While the cost of a condominium in the third quarter of 2024 was $713,801, these small homes can be had for $99,000, the Times reported. The government is also giving out forgivable loans of $35,000 and $11,100 in construction material rebates for those who want to take the plunge.

"We're getting pushed into it, but it might be the best thing ever for mental health, family connections and all of the social capital built up in more communal forms of living," Joe Mihevc said. "We'll tell in a few years if there's a payoff."

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