Happy with their new addition, the Mendozas are currently considering whether to rent the lane house for 1,700 Canadian dollars a month, or possibly to move in when they downsize in their retirement.

Davidson said he became "intimately familiar" with living in a small space when he renovated a 360-square-foot apartment for his wife and him to move into. Much like condominium living which was not widespread in Vancouver 15 years ago but is now popular, the designer felt the demand for laneway housing would take off in a " big way" judging by the interest in the whole process.

At present, about 65 properties around the city were building lane houses under the EcoDensity program. If approved, homeowners can build a lane house instead of a garage. The properties typically range from a studio to two bedrooms and a den, depending on how big the property is.

"It is about making the most of it and making it so that it feels as open and lights as possible and having good amounts of storage so you don't have too much clutter and about having flexible space that can do a lot of different things. You put all those together and you can create something fairly comfortable," said Davidson who holds degrees in both architecture and mechanical engineering.

"I think it (lane houses) will take off in a big way. It still is a bit of a slow process through the city, but that will likely speed up."