What is a Coach House?

Across Canada, interest in coach houses has grown in recent years. These small secondary dwellings, also called garden suites or laneway houses in some cities, are designed to fit on the same lot as an existing house. They provide new living space without requiring a separate property. For homeowners, building a coach house can mean creating room for family, offering a private rental unit, or increasing property value.

In this blog, the renovation specialists at Select Urban General Contractors outline what a coach house is, detail the rules and regulations for building one, and highlight both the benefits and challenges. We’ll also look at what it costs to build a coach house in Canada and what’s involved in the construction process, with a focus on Ottawa!

What is a Coach House?

A coach house is a self-contained dwelling unit built on the same property as a primary house. It is independent from the main residence and typically includes its own entrance, kitchen, and bathroom,

Historically, the term “coach house” referred to small buildings where horse-drawn carriages were kept. Today, the meaning has shifted. In modern housing terms, a coach house is recognized as a type of accessory dwelling unit (ADU). They can take different forms, including:

Across Canada, many cities allow coach houses to increase housing supply without expanding outward into new developments.

Building a Coach House Rules & Regulations

The process of building a coach house depends on municipal zoning bylaws and building codes. Each city has its own requirements for size, placement, and use. Some common rules include:

• Lot size: A minimum lot area is often required before a coach house can be approved.
• Height and size limits: Many municipalities cap the floor area (often around 40% of the main house) and restrict height to one or two storeys.

• Setbacks: A coach house must usually be built a certain distance from property lines, fences, or neighboring houses.
• Parking: Some cities require an additional parking space when you build a coach house, while others have relaxed this rule to encourage more construction.

Ottawa’s Regulations for Building a Coach House

In Ottawa, coach houses became legal in 2016 as part of the city’s strategy to expand affordable housing options. Some of Ottawa’s rules include:

• The main property must be a townhouse, detached, or semi-detached.
• The coach house must be serviced by the same water, sewer, and hydro connections as the main house.
• Maximum size is generally limited to 40% of the main dwelling’s footprint, with height capped at one storey in urban areas.

Benefits of Building a Coach House in Ottawa

There are several reasons homeowners consider building a coach house:

• Multigenerational living – Families can house aging parents or adult children close by while still giving them privacy.
• Rental income – A coach house can generate steady rental revenue, helping offset mortgage costs.
• Increased property value – Typically, the overall worth of the property will raise after adding a second dwelling.

• Flexible use – A coach house can serve as a guest house, home office, or space for visiting relatives.
• Support for Ottawa’s housing demand – With Ottawa facing a growing need for affordable housing, the city actively encourages to build coach houses through zoning reforms and reduced parking requirements.

For Ottawa homeowners, the opportunity to add functional space without buying new property is a major advantage.

Challenges and Limitations of Coach Houses

While the benefits are appealing, there are also challenges with building a coach house:

These challenges mean homeowners should carefully evaluate both the financial and practical considerations before deciding to build a coach house.

How Much Does It Cost to Build a Coach House?

The cost to build a coach house in Canada varies widely based on size, location, and design. On average, homeowners can expect to spend:

• On the low end, a smaller, basic unit can cost around $150,000
• In the middle range, a fully equipped unit with quality finishes can be priced from $200,000 to $300,000.
• On the high end, larger custom-built designs often range from $350,000 to over $400,000.

These costs include construction, permits, site preparation, and utility hookups. In Ottawa, most coach houses fall in the $200,000 to $300,000 range, though costs can increase with more complex projects.

What’s Involved in Building a Coach House?

Building a coach house requires planning, design, and construction expertise. The general process includes:

• Property assessment – Determining if your lot qualifies under local bylaws.
• Design and planning – Creating a layout that meets your needs while following municipal rules.
• Permit applications – Submitting site plans, drawings, and applications for approval.

• Site preparation – Excavation, grading, and utility connection setup.
• Construction – Building the structure, including foundation, framing, roofing, and interiors.
• Final inspections – Municipal review to confirm the coach house meets safety and building code standards.

Working with an experienced contractor helps streamline this process and avoids delays in construction.

If you’re considering adding a coach house to your property, call us at Select Urban General Contractors. We’ll discuss your project and learn how a coach house could fit into your home’s future.