A laneway house is a small, self-contained home built in the back yard of a lot that already has a house, usually facing the lane. A modular one is built indoors in a factory as one or more finished sections, trucked to the lot and craned onto a foundation. The designs further down are examples, from a 288 sq/ft bachelor to a 648 sq/ft two-bedroom.
Quick answer: what decides whether you can build one
- Your city. Laneway houses are a municipal decision. Some BC cities allow them on most house lots, some only in certain zones, and some not at all.
- Lot width. The designs below are drawn for 33 ft and 37 ft lots. A narrower lot limits what fits once setbacks are taken off.
- Access. Modules arrive on a truck and are lifted by crane, so there has to be a route in and somewhere for the crane to stand.
- Services. A laneway house is a dwelling, so it needs water, sewer and power, and a building permit every time.
What modular means here
Modular isn’t the same as a kit or a prefab panel package. The sections arrive with framing, insulation, wiring, plumbing, drywall, flooring, cabinets and fixtures already in place. In British Columbia factory-built homes are built to CSA A277, the national standard for certifying buildings made in a plant, which is how a building inspector accepts work that was never visible on site.
The practical trade-off is this. Factory work happens under cover and off the critical path, so weather delays matter less and the noisy, disruptive part of the build on your lot is shorter. Against that, a module has to fit on a truck and under every bridge between the plant and your lot, which puts real limits on width and on how unusual the shape can be. Changes after the sections are built are expensive, so decisions get locked in earlier than on a site build.
Example Modular Laneway House Designs
Eight designs, smallest first. “Lot width” is the narrowest lot the design was drawn for.
| Design | Floor area | Layout | Modules | Dimensions | Lot width |
|---|---|---|---|---|---|
| Maple M0.1A | 288 sq/ft | Bachelor, 1 bath | 1 | 12′ × 24′ | 33 ft |
| Maple M0.1B | 336 sq/ft | Bachelor, 1 bath | 1 | 12′ × 28′ | 33 ft |
| Elm M1.1 | 408 sq/ft | 1 bedroom, 1 bath | 2 | 20′ × 21′ | 33 ft |
| Dogwood M1.1 | 430 sq/ft | 1 bedroom, 1 bath | 2 | 20′ × 27′ | 33 ft |
| Cedar M1.1 | 505 sq/ft | 1 bedroom, 1 bath | 2 | 24′ × 24′ | 37 ft |
| Alder M1.1 | 528 sq/ft | 1 bedroom, 1 bath | 1 | 24′ × 24′ | 37 ft |
| Arbutus M2.1 | 630 sq/ft | 2 bedroom, 1 bath | 2 | 24′ × 28′ | 37 ft |
| Oak M2.1 | 648 sq/ft | 2 bedroom, 1 bath | 3 | 28′ × 28′ | 33 ft |
What it costs to build
Size drives the cost per square foot far more than which town you are in, because a kitchen, a bathroom, a heating system and a foundation cost about the same whether the home is 300 square feet or 600. That’s why the smallest designs on this page are the most expensive per foot, and it’s the single most common surprise for people pricing a small build.
For a sense of scale from a source anyone can check: the Province of British Columbia had its own free standard accessory dwelling designs costed in August 2024. A 750 sq/ft one-bedroom came to $585 per square foot and a 1,050 sq/ft two-bedroom to $529 per square foot — construction only, with no design fees and no utility connections included. See the Standardized Housing Designs Class D Estimate Report. Every design on this page is smaller than both, so expect a higher rate per foot, and add design, permits, the water and sewer hook-up, site work, the crane and GST on top.
Frequently asked questions
Do I need a lane to build a laneway house?
It depends on the city. Some require a lane, some allow a backyard home with access from the street instead, and the name varies: coach house, garden suite, carriage house and accessory dwelling unit all describe much the same thing. Check what your own municipality calls it before you assume the rules.
Do I need a building permit?
Yes, always. A laneway house is a dwelling with plumbing, wiring and heat, so it’s nothing like the small-shed exemption. For where that exemption does apply, see Maximum Shed Size Without a Permit in BC.
How long does a modular laneway house take?
The factory part is measured in weeks and the on-site part is short, but neither is usually what sets the date. Permitting is, and that varies by municipality from a couple of months to the best part of a year. Ask your building department what they are quoting now before you plan around any schedule.
Can a laneway house be sold separately?
In most BC municipalities, no. It usually has to stay on the same title as the main house, which means it is a rental or a home for family rather than something you can sell on. A few cities have begun allowing stratification. Check locally, and get legal advice before counting on a sale.
Is modular cheaper than building on site?
Not reliably. The savings come from a shorter, more predictable schedule and less weather risk rather than from a lower price per square foot. On a small, awkward or hard-to-reach lot the crane and transport can cancel out the difference entirely.
What isn’t confirmed
- The floor areas and the outside dimensions on this page don’t multiply out. Oak is listed at 648 sq/ft but 28′ × 28′ is 784. The areas are most likely finished interior space and the dimensions the outside of the building, but that isn’t stated on the original spec sheet, so confirm which is which before you use a number for anything that matters.
- Whether Alder really is a single module at 24 ft wide. Road limits usually cap a module well below that, and the near-identical Cedar is listed as two.
- Current pricing and lead times for any of these designs.
- Whether your own lot’s width, lane access and crane access will take the design you want.
For the rules in specific municipalities, see North Vancouver Shed Regulations and the Saanich Shed Bylaw. For finished backyard buildings of every size, browse Backyard Outbuildings, or see a North Vancouver Backyard Office.