BC Bill 44 and Laneway Homes: What Metro Vancouver Homeowners Need to Know in 2026

BC Bill 44, the Housing Statutes (Residential Development) Amendment Act, 2023, received Royal Assent on November 30, 2023, and required most municipalities with more than 5,000 people to update their zoning bylaws by June 30, 2024. Those bylaws must allow at least three units on lots of 280 m² or less, at least four units on larger lots, and up to six units on qualifying lots near frequent bus service (Province of BC). If you own a single-family lot in Metro Vancouver, it changes what you can build on your property.

That's the short version. Here's everything else you need to know.

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• Bill 44 took site-by-site rezoning out of the path for small-scale multi-unit housing that fits the new zoning, and public hearings are prohibited for the zoning bylaws that implement it.
• At least 3 or 4 units per lot, depending on lot size, and up to 6 units on qualifying lots near frequent bus service.
• It applies to municipalities with more than 5,000 people inside an urban containment boundary, including Vancouver, Burnaby, Surrey, Coquitlam, Richmond and Langley.
• You still need a building permit, and every unit must meet the BC Building Code.

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What Is BC Bill 44 and Why Did the Province Pass It?

British Columbia has been in a housing affordability crisis for more than a decade, and the Province's response has focused on allowing more homes on land that is already zoned for housing.

Before Bill 44, most residential land in BC was zoned for single-family use. Adding units beyond what that zoning allowed usually meant a rezoning application: a discretionary municipal process with a public hearing, added cost and an uncertain outcome.

Bill 44 changed that calculus entirely.

The legislation requires municipalities with more than 5,000 people, inside an urban containment boundary, to update their zoning bylaws to permit small-scale multi-unit housing (SSMUH) on residential lots. That means:

• At least 3 units on single-family or duplex lots of 280 m² or less
• At least 4 units on lots larger than 280 m²
• Up to 6 units on qualifying lots near a bus stop with frequent service, which the Province defines as at least every 15 minutes on average during weekday peak hours and on weekends
• No public hearing for the zoning bylaws that implement these requirements

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. Bill 44's SSMUH requirements apply to municipalities with more than 5,000 people inside an urban containment boundary. In Metro Vancouver that includes Vancouver, Burnaby, Surrey, Coquitlam, Richmond, New Westminster, the City and District of North Vancouver, West Vancouver, Port Coquitlam, Port Moody, Delta, the City and Township of Langley, Maple Ridge, Pitt Meadows and White Rock. In the Fraser Valley, it includes 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 frequent bus service. The six-unit requirement applies to qualifying lots near bus stops with service at least every 15 minutes on average during weekday peak hours and on weekends, as defined by the Province. Your municipality's updated zoning shows which lots qualify.

If your lot meets these criteria, you can build the permitted units without a site-specific rezoning, as long as the design meets the zoning bylaw and the BC Building Code.

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 can include one or two bedrooms, a full kitchen, a bathroom and living space. The City of Vancouver has permitted laneway homes since 2009.

Learn more about our laneway home building process

Secondary suites are self-contained units within a house, typically in the basement. The BC Building Code sets requirements for suites, including fire separation, smoke alarms and exits.

Explore secondary suite options for your home

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, adding units beyond what a lot's zoning allowed meant a site-specific rezoning, with a public hearing and a council decision, before a building permit could be considered.

Bill 44 took that site-by-site step out of the path for housing that fits the new zoning. The steps that remain are:

1. Confirm what your lot allows under the updated zoning bylaw
2. Prepare design and permit drawings
3. Apply for the building permit, then build and pass inspections

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.

Cost depends on size, finishes, servicing and site conditions, so the only reliable number is an itemized budget for your lot. Watch for these line items, which are easy to leave out:

• Servicing upgrades for sewer, water and electrical service
• Development cost levies and charges
• Landscaping and site restoration

Development cost levies are a real line item. In the City of Vancouver, the City-wide levies for residential development at or below 1.2 FSR and laneway houses total $81.13 per square metre of floor area ($7.53 per square foot) under the August 2026 Development Cost Levies bulletin. Burnaby, Surrey and Coquitlam set their own charges. Confirm the amount for your specific lot before you finalize your budget.

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 dates to 2009, and its R1-1 Residential Inclusive zone, in effect since October 17, 2023, replaced the old RS zones and allows multiplexes of 3 to 6 strata units, or up to 8 secured rental units, on qualifying lots.

Vancouver also has detailed design rules — 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 R1 Small-Scale Multi-Unit Housing District on June 10, 2024, replacing its 12 former residential districts. Since July 1, 2024, lots previously zoned for single- or two-family homes can have 3 or 4 units depending on lot size, and lots near frequent transit service can have up to 6.

Coquitlam

Coquitlam updated its zoning bylaw to meet the Bill 44 requirements. Check the City's current zoning for your lot, including any transit-area rules, before you design.

Surrey

Surrey is BC's second-largest city, with 568,322 people in the 2021 Census. Like other municipalities over 5,000 people, it had to update its zoning for small-scale multi-unit housing. Check Surrey's current zoning for your lot before you design.

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. A well-designed laneway home or suite can earn market rent, and newer construction with in-suite laundry and a private entrance tends to rent well. Check current rents for comparable units near your address before you count on a number.

Property value is the second benefit. BC Assessment values property every year, and a legal additional unit becomes part of what it assesses.

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. Where the zoning allows it, you can plan for these options from the start.

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' new homes are backed by Pacific Home Warranty.

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

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 licensed builder on the BC Housing registry, and its new homes are backed by Pacific Home Warranty. CoreVal builds custom homes, laneway homes and secondary suites across Metro Vancouver and the Fraser Valley.

What Are the Common Mistakes Homeowners Make with Bill 44 Projects?

These are the pitfalls that catch homeowners 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 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 cost far less than the problems they prevent. If your lot has poor drainage, a 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, property tax is your assessed value multiplied by your municipality's tax rate, so the increase depends on how much the new unit adds to your assessment. Check your municipality's current residential rate and compare the estimated increase with realistic rental income.

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. 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.

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?

Since May 1, 2023, the BC Building Code has required Step 3 of the BC Energy Step Code for new homes province-wide, about 20% better energy efficiency than the previous code minimum, and some municipalities require more.

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

The City of Vancouver uses its own Building By-law, which aligned with EL-4, the top tier of the BC Zero Carbon Step Code, on March 1, 2025, for new 1- to 3-storey homes on the performance path. The provincial target is net-zero energy ready new buildings by 2032.

Building to a higher Step Code level costs more upfront, 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 is simpler. Bill 44 took site-by-site rezoning out of the path for housing that fits the new zoning.
• The path is clearer. For housing that fits the zoning, the main approval is the building permit.
• Rental demand is still there, but the market has loosened. CMHC's 2025 Rental Market Report showed Greater Vancouver's vacancy rate more than doubling, from 1.6% to 3.7%, the highest in more than 30 years, so price rents against current comparables.
• Borrowing costs are lower than their 2023 peak. The Bank of Canada cut its policy rate through 2024 and 2025, but check current lending rates with your lender before you set a budget.
• The unit adds options. A legal laneway home can add rental income and room for family, and it becomes part of your property's assessed value.

Whether it makes financial sense depends on your lot, your costs and current rents, so run those numbers before you commit.

If you own a single-family lot in Metro Vancouver or the Fraser Valley, Bill 44 has widened what you can build. For housing that fits the updated zoning, you can go straight to design and a building permit, without a site-specific rezoning.

Contact CoreVal Homes for a free consultation on your property

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Frequently Asked Questions About BC Bill 44 and Laneway Homes

What is BC Bill 44?

BC Bill 44, the Housing Statutes (Residential Development) Amendment Act, 2023, received Royal Assent on November 30, 2023. It required municipalities with more than 5,000 people inside an urban containment boundary to update their zoning bylaws by June 30, 2024, to allow at least three or four units on most single-family and duplex lots, depending on lot size, and up to six units on qualifying lots near frequent bus service.

Does Bill 44 apply to all of Metro Vancouver?

It applies to the Metro Vancouver municipalities with more than 5,000 people, including Vancouver, Burnaby, Surrey, Coquitlam, Richmond, New Westminster, North Vancouver, West Vancouver, Port Coquitlam, Port Moody, Delta, Langley, Maple Ridge, Pitt Meadows and White Rock. Smaller communities such as Belcarra, Anmore and Lions Bay fall below that threshold.

Do I need to rezone my property to build a laneway home?

Not if your project fits your municipality's updated zoning. Bill 44 required municipalities to pre-zone qualifying single-family and duplex lots, so housing that meets the zoning bylaw goes to design and a building permit instead of a site-specific rezoning.

How long does it take to get a building permit for a laneway home?

It depends on the municipality, the project and how complete your application is. Ask your municipality, or a builder who has recently pulled permits there, for current processing times.

How much does a laneway home cost to build in Vancouver?

It depends on size, finishes, servicing, site conditions and municipal charges. Ask for an itemized budget for your lot that separates construction, design, permits, servicing and development charges. Contact CoreVal Homes 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. CMHC's 2025 Rental Market Report put Greater Vancouver's vacancy rate at 3.7%, up from 1.6% a year earlier, so check current rents for comparable units.

Do I need a licensed builder to construct a laneway home?

In most cases, yes. A new home, including a laneway home, built by a contractor must be built by a residential builder licensed by BC Housing and covered by 2-5-10 home warranty insurance under the Homeowner Protection Act: 2 years on materials and labour, 5 years on the building envelope and 10 years on structural defects. Owner-builders can apply for an authorization under separate rules. CoreVal Homes new homes are backed by 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 houses are regulated by Section 11 of the Zoning and Development By-law; Burnaby, Surrey and Coquitlam each set their own rules. Confirm with your municipality's planning department or 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.

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