If you’re considering building a laneway house in Burnaby, it’s essential to understand the relevant regulations, expected costs, and key details. This guide will provide you with valuable insights into the process and what you need to know before getting started.
1. Cost Estimates & Financial Considerations
Lot / Property Eligibility
To build a laneway house on a given lot, generally:
The lot must be zoned in a category that allows single-family use. The property must have vehicle access from a lane, side street, or in some cases be a corner lot with allowable side access. The principal dwelling must be a single-family home (though it may include a secondary suite). You cannot convert duplex, semi-detached, or high-density lot types into a laneway house alone. The laneway home must typically be located entirely in the rear yard behind the main house, respecting setbacks from property lines, from the principal home, and any other accessory structures. Where trees are involved, they must be retained or replaced in compliance with the Burnaby Tree Bylaw.
2. Cost Estimates & Financial Considerations
Construction & Total Costs
According to Burnaby Laneway House sources, total cost including construction, fees, GST, and other charges is estimated between CAD $250,000 and $500,000, if you keep the existing main house.
For reference, in Vancouver, some laneway home projects have ranged $250,000–$350,000 or higher depending on scale and finishes.
Key Cost Drivers & Additional Expenses
When estimating a laneway build, here are major cost factors to include:
Design & consultant fees: architecture, structural, site surveys, landscape, geotechnical.
Permits & development charges: impact on local utilities, building permit fees, possible development cost charges.
Servicing & utilities: tying into city water, sewer, gas, electrical, possibly upgrading existing services.
Site work / grading / earthworks: if lot has slope, drainage complexities, retaining walls.
Tree removal / landscaping / environmental mitigation: to satisfy tree retention or replacement bylaws.
Interior finishes / systems: quality of flooring, fixtures, cabinetry, appliances, HVAC / heating / cooling etc.
Contingency: usually 10–20% buffer for surprises.
Financing / carrying costs: interest, site insurance, permitting delays.
Return on Investment & Rental Income
While Burnaby sources don’t provide a detailed rent range, similar laneway homes in Metro Vancouver often achieve $2,500 to $4,500/month depending on size, finishes, and locale.
Because the permitted size is up to ~1,500 ft², optimized design and finish quality may push the rent higher in desirable neighbourhoods.
The added value to your property may exceed cost if done well, and cumulative cash flow from rent may help pay back the investment.
3. Process & Timeline
Here’s a high-level roadmap for how a laneway house project in Burnaby typically unfolds:
Feasibility & site check
Confirm lot eligibility (zoning, lane access, setbacks).
Check existing trees, services, utilities.
Engage an architect or designer to sketch options using the city’s guide.
Design & drawings
Prepare architectural, structural, and site drawings.
Coordinate with consultants (engineer, geotech, etc.).
Permit application
Submit to Burnaby’s planning & building departments.
Review may require revisions (urban design input, policy consistency, neighbor feedback).
The city is now accepting laneway home permit applications under the new program.
Approvals
Once permissions are granted, get building permits, utility approvals, inspections scheduling.
This stage may take months depending on complexity and design review.
Construction
Site prep (demolition, grading)
Foundation
Structure / framing
Enclosures (roof, walls, windows)
Systems: plumbing, electrical, HVAC
Interior finishes, landscaping
Inspection / occupancy
Final inspections, occupancy permit, certificate of compliance.
Many laneway projects in Metro Vancouver take 8 months to 1 year or more from permit start to occupancy (depending on complexity and delays).
4. Key Risks, Challenges & Considerations
Site constraints: slope, drainage, soil, tree retention may force design compromises or additional cost.
Setback / compatibility with neighbors: respecting privacy, massing, overshadowing, and view corridors.
Utility capacity and servicing: ensure existing service lines can support an additional unit.
Design quality & efficiency: good planning is critical because mistakes cost more in small buildings.
Permitting delays: design revisions, planning reviews, coordination with multiple city departments sometimes slow approvals.
Unexpected surprises: underground obstructions, soil conditions, unexpected site costs.
Financing & carrying costs: while building, you need to service construction debt and hold insurance, etc.
Market risk / rental demand: ensure there is demand for a small detached unit in your neighbourhood.
Regulatory changes: Burnaby’s zoning bylaws are being updated (Zoning Bylaw Rewrite) which may shift rules.
Maintenance: small units often face higher per-foot maintenance costs (roofing, envelope, systems).
