Vancouver just took a big step toward something we at Smallworks have believed in for years: laneway homes as more than just backyard buildings, but as real, meaningful housing.

On July 9, City Council unanimously passed a motion directing staff to research the feasibility of allowing fee‑simple ownership or stratification of secondary detached units, such as laneway homes, that meet R1‑1 zoning guidelines. In other words, turning them into their own legal units. It’s early days, but it’s a signal that the city’s ready to open more doors to homeownership to more people.

The motion recognizes a key insight: nearly 42 % of Vancouver’s single-family homes are owned mortgage‑free by seniors, many of whom would welcome the flexibility of downsizing or creating housing for family or retirement income (Vancouver City Council). This is a huge opportunity to unlock stagnant equity and new housing supply.

What’s Changing?

Right now in Vancouver, laneway homes are secondary to the main house. They’re not their own legal lot, and you can’t sell them separately. But this motion, called “Opening Doors”, asks staff to figure out if, and how, that could change. Could a young couple buy a laneway home as their first property? Could a senior homeowner sell their home and downsize in the backyard? Could a homeowner house and care for their aging parents in the lane today and sell the laneway home to fund their retirement in the future?

The city is looking at other places that have done it, like Seattle and California, where this kind of policy is already helping people age in place, unlock equity, and build stronger communities.

Why It Matters

As Tamara White, Executive Director of Small Housing BC, shared with CityNews: this move has the potential to “democratize the production of new housing [and] give more tools to everyday homeowners to help out with the housing crisis.”

We couldn’t agree more. For years, homeowners have been quietly doing the work by building laneway homes, welcoming in parents, kids, renters, and friends. Giving these homes their own legal standing is the technical change needed to make those efforts go further.

“It really does give you the option to own a detached house,” Tamara adds. “Our extended families can finance those independently. You can sell them, inherit them; everything gets a lot easier than the way we do it currently.”

This motion makes space for long-term thinking, financial freedom, and human-scale living.

And it aligns perfectly with where Smallworks is headed: designing housing that supports real lives, not just real estate markets.

• Empowering homeowners – By allowing separate ownership of laneway homes, Vancouver enables seniors and long-term owners to unlock equity without selling their homes.
• Boosting supply for first‑time buyers – A standalone laneway home offers an attainable and desirable entry point into Vancouver’s high‑priced market.
• Supporting multigenerational living – Families can live adjacent to one another, with the added benefit of privacy and financial autonomy.
• Leveraging proven models – Similar regulations in Seattle and California have unlocked new housing while adding flexible ownership options.

Watch Smallworks owner, Akua Schats, share her personal laneway home story with CTV News.

What Comes Next?

The city has asked staff to report back on:

• Legal tools for creating separate ownership (fee-simple or strata)
• How this fits into Vancouver’s climate, housing, and planning goals
• How to make sure it supports equity and affordability, not speculation
• Input from builders, lenders, planners, and, most importantly, homeowners.

No timelines yet, but we’ll be watching closely — and we’ll be part of the conversation.

What This Could Mean for You

If you’re a homeowner: This opens the door to new options. You might be able to build a laneway home that your family can own, finance, or sell separately, creating long-term value and flexibility.

If you’re looking to buy: This could mean more attainable homes in more neighbourhoods. Homes with yards, sunlight, and a real sense of place.

Vancouver’s motion to enable stratification or subdivision of laneway and backyard homes is more than a planning tweak; it’s a paradigm shift in gentle densification. Stay tuned. This could be a game‑changer for how we live, build, and own in Vancouver.