*By David Bond, President, CoreVal Homes*
BC Bill 44 — officially the Housing Statutes (Residential Development) Amendment Act — was passed in November 2023 and came into force in June 2024. It upzoned approximately 90% of single-family and duplex lots across British Columbia to allow up to four dwelling units per lot, and up to six units on lots near frequent transit. If you own a single-family home in Metro Vancouver, this legislation directly affects what you can build on your property — and the process for getting it built is now faster than at any point in the past 40 years.
That's the short version. Here's everything else you need to know.
---
> **TLDR — 5 Key Takeaways** > > 1. **Bill 44 eliminated the rezoning step** for most secondary suites, laneway homes, and small multiplexes in BC. Homeowners now go straight to building permit — cutting 12–18 months off previous timelines. > 2. **Up to 4 units per lot** are now permitted on former single-family and duplex lots across BC, and **up to 6 units** on lots within 400 metres of frequent transit. > 3. **Permit timelines for laneway homes and secondary suites** now run 8–16 weeks in most Metro Vancouver municipalities, down from the 12–18 month rezoning process that existed before. > 4. **BC Housing's target is 570,000 new homes by 2030** — and small-scale infill on existing residential lots is a central piece of how the province intends to get there. > 5. **Every BC municipality with a population over 5,000** is covered by Bill 44's zoning requirements. Vancouver, Burnaby, Surrey, Coquitlam, Richmond, Langley, and the rest of Metro Vancouver are all included.
---
What Is BC Bill 44 and Why Did the Province Pass It?
British Columbia has been in a housing affordability crisis for over a decade. According to the Canada Mortgage and Housing Corporation (CMHC), BC's housing starts would need to increase by roughly 50% above historical averages to restore affordability to 2003–2004 levels. The provincial government's own target — published by BC Housing — calls for 570,000 new homes by 2030.
The problem wasn't just a shortage of developers willing to build. It was the zoning itself. Before Bill 44, most residential land in BC was zoned for single-family use only. If you wanted to add a laneway home, a secondary suite, or convert your lot into a duplex, you typically needed a rezoning application — a discretionary municipal process that took 12 to 18 months and cost tens of thousands of dollars in consulting, design, and application fees. Many municipalities rejected rezoning applications outright.
Bill 44 changed that calculus entirely.
The legislation requires every BC municipality with a population over 5,000 to update its zoning bylaws to permit small-scale multi-unit housing (SSMUH) on residential lots. That means:
- **2 units on any lot** previously zoned single-family
- **3–4 units on lots** depending on size and location
- **Up to 6 units on lots** within 400 metres of a bus exchange, SkyTrain station, or other frequent transit stop
- **Secondary suites and laneway homes** are permitted by right — no rezoning, no public hearing, no discretionary council vote
The shift from discretionary to as-of-right zoning is the most significant change. It means your project lives or dies on whether it meets the building code and zoning setback requirements — not on whether your neighbours approve or whether council is in a permissive mood.
Does Bill 44 Apply to My Lot?
This is the question that matters most to individual homeowners, and the answer depends on three things: your municipality's population, your lot's current zoning, and your proximity to transit.
**Step 1: Check your municipality's population.** Bill 44's SSMUH requirements apply to all BC municipalities with a population of 5,000 or more. In Metro Vancouver, that covers every single municipality: Vancouver, Burnaby, Surrey, Coquitlam, Richmond, New Westminster, North Vancouver (City and District), West Vancouver, Port Coquitlam, Port Moody, Delta, Langley (City and Township), Maple Ridge, Pitt Meadows, and White Rock. In the Fraser Valley, it covers Abbotsford, Chilliwack, and Mission.
**Step 2: Check your current zoning.** If your lot is currently zoned for single-family residential (RS, R1, or equivalent) or duplex (RT, R2), Bill 44 applies. If your lot is already zoned for multi-family, commercial, industrial, or agricultural use, the legislation doesn't change your zoning — though you may have other options.
**Step 3: Check your proximity to transit.** Lots within 400 metres of a frequent transit stop — defined by TransLink's Frequent Transit Network — qualify for up to 6 units. Lots farther from transit qualify for up to 4 units. You can check TransLink's Frequent Transit Network map online.
If your lot meets these criteria, you have the right to build additional dwelling units without a rezoning application. The municipality cannot deny you based on neighbourhood character, parking concerns, or any of the other discretionary grounds that used to stop projects cold.
What Can I Actually Build on My Property Under Bill 44?
The legislation opens up several building types that were previously restricted or prohibited on most single-family lots. Here's what's now possible:
**Laneway homes** (also called coach houses or accessory dwelling units) are standalone buildings in the rear yard, typically accessed from the lane. They range from 500 to 1,000+ square feet and can include one or two bedrooms, a full kitchen, bathroom, and living space. In Metro Vancouver, laneway homes have become the most popular form of infill housing — the City of Vancouver alone has issued permits for over 5,500 laneway homes since the program launched, according to City of Vancouver planning data.
[Learn more about our laneway home building process](/laneway-homes/)
**Secondary suites** are self-contained units within an existing home — typically in the basement, though above-grade suites are increasingly common. BC Building Code requires a secondary suite to have a separate entrance, its own kitchen and bathroom, fire separation from the primary unit, and minimum ceiling heights. Bill 44 makes secondary suites permitted by right on all qualifying lots.
[Explore secondary suite options for your home](/secondary-suites/)
**Duplexes and triplexes** are now possible on lots that were previously single-family only. A duplex can be side-by-side or stacked. A triplex can be configured as a primary home with two suites, or as three distinct units. On larger lots near transit, you can go up to a fourplex or even a sixplex.
**Garden suites and backyard studios** are smaller detached structures — sometimes used as rental units, sometimes as home offices or in-law suites. Bill 44 makes these a viable option for homeowners who want rental income without the scale of a full laneway home.
How Long Does the Permit Process Take Now?
Before Bill 44, the timeline to add a laneway home or secondary suite on a single-family lot in Metro Vancouver looked like this:
1. **Pre-application consultation:** 2–4 weeks 2. **Rezoning application:** 6–12 months (including public hearing) 3. **Development permit:** 4–8 months 4. **Building permit:** 4–8 weeks 5. **Total:** 12–24 months before construction could start
Bill 44 eliminated steps 2 and 3 for most small-scale residential projects. The new timeline:
1. **Design and permit drawings:** 4–8 weeks (done in parallel with permit application) 2. **Building permit review:** 8–16 weeks in most Metro Vancouver municipalities 3. **Total before construction:** 3–6 months
That's a reduction of 9 to 18 months off the pre-construction timeline. For homeowners, it means the carrying costs of an undeveloped lot drop dramatically. For the housing market, it means supply can respond to demand years faster than before.
According to Statistics Canada's Building Permits data, BC issued a record number of residential building permits in the 12 months following Bill 44's implementation — a direct result of the simplified permit process.
What Does It Cost to Build a Laneway Home in Metro Vancouver?
Cost is the first question most homeowners ask, and the honest answer is: it depends on size, finishes, site conditions, and municipality.
According to CMHC's 2024 Housing Market Insight reports and industry data compiled by the Canadian Home Builders' Association of BC (CHBA BC), the typical cost range for a purpose-built laneway home in Metro Vancouver falls between $250,000 and $500,000. That range covers:
- **Smaller units (500–700 sq ft):** $250,000–$350,000
- **Mid-range units (700–900 sq ft):** $300,000–$400,000
- **Larger or premium units (900–1,200 sq ft):** $375,000–$500,000
These figures include design, engineering, permits, site preparation, construction, and finishing — but do not include landscaping, servicing upgrades (sewer, water, electrical), or Development Cost Levies (DCLs), which vary by municipality.
**Development Cost Levies** are a significant line item. The City of Vancouver charges DCLs based on the floor area of the new dwelling — rates vary by area but can range from $30 to $150+ per square foot depending on the zone and dwelling type. Burnaby, Surrey, and Coquitlam have their own DCL structures. Always confirm the DCL for your specific lot before finalizing your budget.
*These figures are based on CMHC and CHBA BC market data and represent industry averages. Actual costs vary based on project scope, materials, and site conditions. Contact [CoreVal Homes](/contact/) for a personalized assessment.*
Secondary suite conversions in existing homes typically cost less — in the range of $80,000 to $180,000 depending on whether the space is already partially finished and whether structural modifications are required.
*These figures are based on CHBA BC market data and represent industry averages. Contact [CoreVal Homes](/contact/) for a personalized assessment.*
How Does Bill 44 Work Differently in Each Municipality?
Bill 44 sets the provincial floor, but each municipality implements it through its own updated bylaws. Here's what homeowners need to know in the four largest Metro Vancouver municipalities:
Vancouver
The City of Vancouver was ahead of the curve — its laneway home program launched in 2009, and the Multiplexing Policy was adopted before Bill 44 passed. Under the current rules, Vancouver permits up to 6 units on most single-family lots (the "Secured Rental Policy" areas allow even more density with rental tenure). Vancouver's building permit timelines for laneway homes average 10–14 weeks. The city's DCLs are among the highest in the region.
Vancouver also has some of the most prescriptive design guidelines — maximum building heights, setback requirements, and lot coverage limits are tighter than in some suburban municipalities. Working with a builder who knows Vancouver's specific requirements is critical to avoiding costly redesigns during permit review.
Burnaby
Burnaby adopted its SSMUH bylaws in mid-2024, permitting up to 4 units on single-family lots citywide and up to 6 near transit hubs like Metrotown, Brentwood, and Lougheed. Burnaby's permit process runs 8–12 weeks for straightforward laneway home and secondary suite applications. The city has invested in dedicated small-housing permit review staff to keep timelines manageable.
Coquitlam
Coquitlam updated its zoning bylaws in 2024 to comply with Bill 44. The city permits 4 units per lot on most residential land and 6 units near Coquitlam Centre and Burquitlam SkyTrain stations. Coquitlam has been proactive about publishing design guidelines and pre-approved plans for small housing, which can shorten the design phase.
Surrey
Surrey — BC's second-largest city with a population of over 614,000 (Statistics Canada, 2021 Census) — has seen significant uptake in secondary suite and laneway home permits since Bill 44. The city already had a laneway home program in place but restricted it to certain neighbourhoods. Under the new provincial rules, all single-family lots in Surrey now qualify. Surrey's permit timelines for secondary suites run 8–12 weeks; laneway homes take 10–16 weeks depending on complexity.
What Are the Financial Benefits of Building a Laneway Home or Secondary Suite?
The financial case for adding a dwelling unit to your property rests on three pillars: rental income, property value appreciation, and long-term flexibility.
**Rental income** is the most immediate benefit. According to CMHC's Rental Market Report (October 2025), the average rent for a purpose-built one-bedroom unit in Metro Vancouver was $1,850 per month. Two-bedroom units averaged $2,400 per month. A well-designed laneway home or garden suite can command comparable rents, and in some neighbourhoods, premium rents — particularly if the unit is newer construction with modern finishes, in-suite laundry, and a private entrance.
On an annualized basis, a one-bedroom laneway home renting at $1,850/month generates $22,200 per year in gross rental income. After property taxes, insurance, maintenance reserves, and vacancy allowance, net income typically falls in the range of $15,000 to $18,000 per year. That's a meaningful return on a $300,000 investment — and the asset appreciates alongside your primary home.
**Property value appreciation** is the second benefit. BC Assessment data consistently shows that properties with legal secondary suites or laneway homes sell at a premium compared to equivalent single-family lots without additional units. The premium varies by neighbourhood and market conditions, but a legal suite or laneway home typically adds 10–20% to the assessed value of the property.
**Family flexibility** is the third — and often the most personal — benefit. A laneway home can house aging parents, adult children, or visiting family members without sacrificing the privacy of the main house. It can serve as a home office, an art studio, or a guest house that converts to rental income when you don't need the space. Bill 44 gives you the legal right to build these options without asking anyone's permission.
What Should I Look for in a Builder for a Bill 44 Project?
Not every contractor is equipped to build a laneway home or manage a multiplex infill project. The difference between a smooth build and a costly disaster often comes down to five things:
**1. BC Housing licensing.** Any builder constructing a new residential unit in BC must be licensed by BC Housing and provide a 2-5-10 home warranty. This covers 2 years on materials and labour, 5 years on the building envelope, and 10 years on structural defects. A builder who isn't licensed — or who tries to frame the project as a "renovation" to avoid the warranty requirement — is a red flag. CoreVal Homes carries full 2-5-10 warranty coverage through Pacific Home Warranty on every new build.
**2. Experience with municipal permit processes.** Every municipality has its own quirks — specific setback requirements, tree protection bylaws, servicing standards, and design review processes. A builder who has completed laneway homes and secondary suites in your specific municipality will know what the permit office expects and how to avoid common rejection points.
**3. Full-service capability.** A laneway home project involves architecture, structural engineering, geotechnical assessment (in some cases), civil engineering for servicing, interior design, and general contracting. Builders who coordinate all of these in-house — or through established subcontractor relationships — deliver faster timelines and fewer coordination failures.
[View our full range of services](/services/)
**4. CHBA BC membership.** The Canadian Home Builders' Association of British Columbia sets standards for professional conduct, continuing education, and warranty compliance. CHBA BC members are accountable to an industry association, not just to their own reputation.
**5. Transparent pricing.** The single biggest source of conflict in residential construction is cost overruns. Before signing any contract, you should have a detailed, line-item budget with allowances clearly marked and a defined change-order process. If a builder won't give you a fixed-price or guaranteed-maximum-price contract, ask why.
CoreVal Homes is a BC Housing licensed builder, a CHBA BC member, and carries full 2-5-10 warranty coverage through Pacific Home Warranty. We've built laneway homes, secondary suites, backyard studios, and custom homes across Metro Vancouver and the Fraser Valley. We know the permit process in every municipality we operate in — and we provide transparent, itemized pricing on every project.
What Are the Common Mistakes Homeowners Make with Bill 44 Projects?
After working with homeowners across Metro Vancouver on infill housing projects, these are the pitfalls we see most often:
**Underestimating servicing costs.** Your lot may be zoned for a laneway home, but your sewer and water connections may not have capacity for an additional dwelling unit. In some older neighbourhoods, the sewer lateral needs to be replaced or a new connection needs to be run to the street. Water pressure may need upgrading. These costs can run $15,000 to $40,000 and aren't included in most "laneway home cost" estimates you'll find online.
**Ignoring tree protection bylaws.** Metro Vancouver municipalities take tree protection seriously. Vancouver, Burnaby, and Surrey all have bylaws that protect significant trees — and if your proposed laneway home footprint conflicts with a protected tree's root zone, you may need to redesign the building, relocate it on the lot, or apply for a tree removal permit (which can add weeks to your timeline and thousands in arborist fees and replacement tree costs).
**Choosing the cheapest bid.** In residential construction, the lowest bid almost always means something was left out. Common omissions: permit fees, DCLs, servicing upgrades, landscaping restoration, temporary power, and waste removal. Compare bids on a line-item basis, not on total price alone.
**Not confirming the unit will be legal.** Bill 44 gives you the right to build — but the unit still needs to meet the BC Building Code for fire separation, ceiling height, egress, ventilation, and energy efficiency. A basement suite that doesn't have proper fire separation isn't a legal secondary suite — it's a liability. Always work with a builder who pulls proper permits and schedules all required inspections.
**Skipping the soil and survey work.** A geotechnical report and a legal survey may cost $3,000 to $6,000 combined, but they prevent far more expensive problems. If your lot has poor drainage, high water table, or unknown fill, you need to know before you pour a foundation — not after.
How Does Building a Laneway Home Affect My Property Taxes?
Adding a secondary suite or laneway home to your property will increase your property's assessed value, which typically increases your annual property taxes. However, the increase is usually modest relative to the rental income the new unit generates.
BC Assessment values your property based on its highest and best use. Once a laneway home or suite is completed and occupied, BC Assessment will reassess the property — typically at the next annual assessment cycle. The increase in assessed value depends on the size, quality, and rental potential of the new unit.
For context: if a laneway home adds $150,000 to your property's assessed value, and your municipality's residential tax rate is 3.5 mills (per $1,000 of assessed value), your annual property tax increase would be approximately $525. Against annual rental income of $22,000+, the math works clearly in the homeowner's favour.
Additionally, BC offers the Home Owner Grant, which reduces property taxes for eligible homeowners on their principal residence. Adding a laneway home does not disqualify you from the Home Owner Grant on your main dwelling.
What Financing Options Exist for Laneway Homes and Secondary Suites?
Most Canadian banks and credit unions now offer financing products specifically designed for secondary suite and laneway home construction. The three most common approaches:
**Home equity line of credit (HELOC).** If you have significant equity in your property, a HELOC is often the simplest path. Current HELOC rates in Canada run between 6.5% and 7.5% (Bank of Canada prime rate + margin, as of early 2026). The advantage: you borrow only what you need, when you need it, and pay interest only on the drawn amount during construction.
**Refinance with construction holdback.** Some lenders will refinance your existing mortgage and include the construction cost, releasing funds in stages (draws) as construction milestones are completed. This approach works well for larger projects where the total cost exceeds your available HELOC room.
**CMHC MLI Select.** For homeowners building purpose-built rental units, CMHC's Multi-Unit Mortgage Loan Insurance (MLI Select) program offers favourable terms for energy-efficient and affordable housing. If your laneway home meets certain energy-efficiency standards (such as BC Energy Step Code Step 3 or higher), you may qualify for reduced insurance premiums.
Talk to your mortgage broker or lender early in the process — ideally before you finalize designs. Knowing your budget ceiling before you start drawing plans prevents wasted design fees and scope creep.
What Energy Efficiency Standards Apply to New Laneway Homes in BC?
BC's Energy Step Code sets progressive energy-efficiency targets for new construction. As of 2024, most Metro Vancouver municipalities require Step Code Step 3 or higher for new laneway homes and secondary suites. Step 3 requires roughly 40% better energy performance than a baseline BC Building Code home.
In practical terms, this means:
- **Better insulation** — walls, roof, and foundation
- **High-performance windows** — double or triple glazed, low-E coated
- **Heat recovery ventilation (HRV)** — required for air quality in tight building envelopes
- **Air tightness testing** — the completed building must pass a blower door test demonstrating low air leakage
- **Energy modelling** — a certified energy advisor must model the building's performance before the permit is issued
Some municipalities — notably Vancouver — are already requiring Step Code Step 4 or higher for certain building types. The direction is clear: every year, the energy bar gets higher.
Building to a higher Step Code level costs more upfront — typically 5–10% more than baseline code — but reduces long-term operating costs and increases the unit's rental appeal. Tenants increasingly factor energy costs into their rental decisions, and a unit with low heating bills commands a premium over a drafty older suite.
Is It Worth Building a Laneway Home in 2026?
The conditions for building a laneway home in Metro Vancouver have never been more favourable than they are right now:
- **Zoning barriers are gone.** Bill 44 removed the single biggest obstacle — the discretionary rezoning process that killed most projects before they started.
- **Permit timelines are reasonable.** At 8–16 weeks, the permit process is predictable and manageable.
- **Rental demand is at historic highs.** Metro Vancouver's rental vacancy rate was 0.9% as of CMHC's October 2025 Rental Market Report — among the lowest in Canada. Demand for rental housing is not going to soften meaningfully in the next decade.
- **Interest rates have stabilized.** After the Bank of Canada's rate-cutting cycle in 2024–2025, borrowing costs have settled into a range that makes construction financing viable for most homeowners with equity.
- **Property values support the investment.** A legal laneway home adds both rental income and assessed value to your property. The combined return — income plus appreciation — typically exceeds what you'd earn from any other use of that capital.
The question isn't whether building a laneway home makes financial sense. It's whether you're ready to start.
If you're a homeowner in Metro Vancouver or the Fraser Valley sitting on a single-family lot, Bill 44 has given you options that didn't exist two years ago. The zoning is in your favour. The permit process is now direct — building permit only, no rezoning required. The demand for housing is real.
[Contact CoreVal Homes for a free consultation on your property](/contact/)
---
Frequently Asked Questions About BC Bill 44 and Laneway Homes
**What is BC Bill 44?**
BC Bill 44, formally the Housing Statutes (Residential Development) Amendment Act, is provincial legislation passed in November 2023 and effective June 2024. It requires all BC municipalities with populations over 5,000 to update their zoning bylaws to allow small-scale multi-unit housing on most residential lots. This means homeowners can build up to 4 dwelling units per lot (or 6 near transit) without going through a rezoning process.
**Does Bill 44 apply to all of Metro Vancouver?**
Yes. Every municipality in Metro Vancouver has a population over 5,000 and is therefore required to comply with Bill 44's small-scale multi-unit housing provisions. This includes Vancouver, Burnaby, Surrey, Coquitlam, Richmond, New Westminster, North Vancouver, West Vancouver, Port Coquitlam, Port Moody, Delta, Langley, Maple Ridge, Pitt Meadows, and White Rock.
**Do I need to rezone my property to build a laneway home?**
No. That's the most significant change Bill 44 introduced. If your lot is zoned single-family or duplex in a qualifying municipality, you can apply directly for a building permit to construct a laneway home, secondary suite, or small multiplex. The discretionary rezoning step has been eliminated for these housing types.
**How long does it take to get a building permit for a laneway home?**
Building permit timelines for laneway homes and secondary suites in Metro Vancouver currently range from 8 to 16 weeks, depending on the municipality, the complexity of the project, and the completeness of your application. This is significantly faster than the 12–18 month process that was required when rezoning was still part of the equation.
**How much does a laneway home cost to build in Vancouver?**
According to CMHC and CHBA BC data, laneway homes in Metro Vancouver typically cost between $250,000 and $500,000, depending on size, finishes, site conditions, and municipal fees. This includes design, engineering, permits, construction, and finishing — but does not include Development Cost Levies, servicing upgrades, or landscaping. *These figures are based on CMHC and CHBA BC market data and represent industry averages. Contact [CoreVal Homes](/contact/) for a personalized assessment.*
**Can I rent out a laneway home?**
Yes. Laneway homes and secondary suites built under Bill 44 are legal dwelling units that can be rented to tenants. They are subject to BC's Residential Tenancy Act, which governs tenant rights, rent increases, and lease terms. Purpose-built rental units are among the most in-demand housing types in Metro Vancouver, with CMHC reporting a 0.9% vacancy rate for the region as of October 2025.
**Do I need a licensed builder to construct a laneway home?**
Yes. Any new residential construction in BC that creates a separate dwelling unit requires a BC Housing licensed builder who provides a 2-5-10 home warranty. This is a legal requirement under the Homeowner Protection Act. The 2-5-10 warranty covers 2 years on materials and labour, 5 years on the building envelope, and 10 years on structural defects. CoreVal Homes carries full 2-5-10 warranty coverage through Pacific Home Warranty.
**What is the maximum size for a laneway home in Metro Vancouver?**
Maximum size varies by municipality, lot size, and zoning. In Vancouver, laneway homes are typically capped at 0.16 times the lot area or 900 square feet — whichever is less — though recent policy changes have increased allowable sizes on larger lots. Burnaby, Surrey, and Coquitlam each have their own maximum floor area regulations. Confirm with your municipality's planning department or work with a builder who knows the local rules.
**Will building a laneway home increase my property taxes?**
Yes, your property's assessed value will increase, which will raise your annual property taxes. However, the increase is typically modest relative to the rental income a laneway home generates. The Home Owner Grant on your principal residence is not affected by adding a laneway home.
---
*David Bond is the President of [CoreVal Homes](https://www.corevalhomes.com/services/), a BC Housing licensed custom home builder serving Metro Vancouver and the Fraser Valley. CoreVal Homes is a CHBA BC member and provides full 2-5-10 home warranty coverage through Pacific Home Warranty on every new build. For questions about building a laneway home, secondary suite, or custom home on your property, [contact us directly](/contact/).*