Why the hell wouldn't you build a house in a lane way?

The Little House as it is called is allegedly the smallest house in Toronto.  

On a lot near Dufferin St. and St. Clair West that was originally zoned as a lane way for the adjacent house, no curb was every cut for a vehicle so a house was built.  

At just under 300 square feet and on a lot that is 7.25 x 113.67 feet, the builder Arther Weeden, shown in the picture at the bottom, decided in 1912 that this would be a great place for he and his wife to live.  And they did for 30 years.  

In 2007, it was for sale after changing hands a few times.  The selling price was either $139,000 and after some renovations the owner listed it the following year for $173,000.

That's crazy.

It is not currently for sale but if it was, what would you pay for it!?!