In June of 2019, Post City reported that two of Toronto’s wealthiest neighbourhoods, Yorkville and Summerhill, had successfully petitioned for exemption from a citywide policy to expedite laneway housing builds to help with densification.
Now, a UBC study has found that properties neighbouring homes with laneway units decreased in value anywhere between 2.8 per cent at the lower end and 4.8 per cent in areas in Vancouver. It is worth noting that these statistics were based on more affluent west end neighbourhoods, while in the east end of Vancouver, the impact was almost zero. “The findings illustrate that the costs and benefits of added density depend importantly on neighbourhood type,” states the abstract.
The report might have piqued the interest of Yorkville and Summerhill residents, though their arguments against laneway housing development notably did not cite concerns about decreasing property value. The residents association responsible for the two neighbourhoods, ABC Residents Association (ABCRA), asserted exemption on the basis that a neighborhood-specific plan would be more accommodating of their unique needs.
ABCRA member Mary Helen Spence is adamant that density and property values were never ABCRA’s foremost concern in seeking exemption from the Changing Lanes bylaw.
“I think you misinterpreted what our concerns were,” she said. “[ABCRA’s] primary concern from the beginning has been the lack of individual planning for neighbourhoods.”
Spence pointed to an increase in density in these neighborhoods as evidence. “You can see the amount of developments we’ve accepted over the past few years.”
However, architect and senior manager of laneway design and build team Lanescape, Tony Cunha, maintained that ABCRA’s move for exemption was problematic. He said the neighbourhoods should have just accepted the new policy.
“I’ve had at least 20 or 30 residents [in the Yorkville/ Summerhill neighbourhoods] who have reached out to us and said, ‘Hey, I’d like to build a laneway suite.’”
Spence has challenged Lanescape’s argument that laneway homes “maximize sunlight penetration into backyards and ensure there would be no loss of green space.” She pointed to a photo of a laneway unit near Christie Pits that is visibly lacking in green space as proof that the neighbourhood’s specific needs would not be met under the citywide policy.
Cunha explains that the dynamic in laneway units is most often families looking to house relatives, live-in employees or to create their own office space outside of the immediate home. “[Laneway housing] is conducive to housing flexibility that applies to everybody, regardless of their income and their location,” he said.
It remains to be seen whether Toronto will see a similar effect on the property value of homes surrounding laneway units.
