How Much Does it Cost to Build a Home in Ontario?

Welcome to the world of home building and renovation—a realm where your dreams can flourish, your budget can implode, and your knowledge of construction terms will skyrocket (whether you like it or not). After decades in the business as a builder, architect, general contractor, and even realtor, I’ve seen it all: changing building codes, rising construction costs, and trends that go out of style faster than a fad diet. But if there’s one thing I’ve learned, it’s this: building or renovating your dream home can be an amazing (albeit occasionally stressful) journey—if you know what you’re doing and when to outsource expertise.

Here’s your humorous, yet practical, guide to navigating the complexities of building and renovating a home without regretting your choices, or worse—getting caught with your pants down financially.

1. Before You Dive In: Know What You’re Getting Into

Let’s face it: buying a home is more than just picking a place with a good kitchen and a decent backyard for your dog to pee in. Whether you’re planning to keep the house as-is, renovate it, or tear it down and start fresh, there’s a lot to consider. Ask yourself: “What’s my ultimate vision for this place? Is this my forever home, or am I just trying to flip it for a profit?” Your answers will dictate your approach.

Pro Tip: If you’re in it for the long haul, be mindful not to over-improve. That marble-lined bathroom might seem like a luxury, but do you really need it? Conversely, don’t cheap out in places that will make your home feel flimsy. Those corners cut now may lead to a draughty windows or rotting wood later.

Luxury means a lot of things to a lot of people. But for me, curating a life of luxury is a holistic approach. Learn more about finding your life of luxury here.

2. Doing It All at Once vs. Piece-by-Piece Renovations

We all love a good home improvement project, right? But here’s the thing: doing everything at once is often cheaper and way more satisfying in the long run. If you’ve got a renovation list as long as a Costco receipt, tackle it in one fell swoop.

Why? Because staging a renovation (e.g., doing the kitchen now, the bathroom later) is like trying to put a puzzle together with pieces from different sets. The end result is… not quite right. When you complete everything at once, the house will have a more cohesive, unified feel, and you’ll enjoy a finished product instead of a slow drip of incomplete spaces.

Money Saver Tip: While the budget may not always allow it, do your best to go big on your renovation and get the whole house sorted out. Trust me, the satisfaction of a finished home far outweighs the misery of living with half-done rooms.

3. Design: DIY or Hire a Pro?

Here’s a common trap: relying on your contractor to play architect. Sure, they’re great at swinging hammers and running cables, but don’t expect them to have the design chops of a professional.

Hiring an architect or interior designer can be pricey, but in the long run, they save you money by helping you avoid costly mistakes. Plus, your house will go from “just a place to live” to “wow, you’re really fancy” with the right design. Budget for these services, and you’ll end up with something that looks like it’s from the pages of Architectural Digest rather than Home Depot Weekly.

Pro Tip: Designer fees can range from 10%-20% of your construction costs, depending on how involved the design is. It’s a tough pill to swallow, but it’s like paying for quality ingredients in a gourmet dish—you’ll taste the difference.

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4. Cost Per Square Foot: It’s Not Just About Size

When it comes to renovations and new builds, everyone wants to know: “What’s it going to cost per square foot?” In 2024, the range is wide: anywhere from $150 to $450 per square foot for renovations, and about $250 to $500 per square foot for new builds in Toronto. Here’s the deal—costs vary wildly based on what you’re doing.

Is it just a cosmetic update, or are you ripping out walls and replacing plumbing, electrical, and HVAC systems? Are you putting in a brand-new roof or redesigning the whole floor plan? These “hidden” costs will add up faster than you can say “I need a bigger budget.”

Pro Tip: If you’re adding a basement or doing extensive landscaping, add at least half the price of a new build to your total square footage calculation for that component. Basements don’t come cheap, especially if you want them finished to a high standard.

5. Renovation vs. New Build: What’s Cheaper?

A new build might sound like it’ll drain your wallet, but in some cases, it could be cheaper than a full renovation. Why? Demolition costs on a renovation can be more than double what it would cost to tear down an old house and start fresh.

That’s right. Taking a house apart carefully and not damaging the foundation or other parts of the house takes a lot of work—and that work doesn’t come cheap. New builds, while more expensive at first glance, don’t require the same level of finesse when it comes to knocking things down.

If you’re adding an extension, be prepared for those square footage costs to exceed those of a brand-new house—because you’re essentially marrying the old with the new, and that union can be expensive.

6. Hidden Costs: More Than Just Walls and Roofs

Don’t forget the hidden costs when building or renovating: appliances, plumbing fixtures, landscaping, and city service connections. If you’re adding a pool, hold on to your wallet—swimming pools can run anywhere from $100,000 to $300,000, depending on the extras (like landscaping, outdoor kitchens, or special fencing).

Pro Tip: Always include a contingency fund for these unsexy costs. Your dream home won’t be so dreamy if your plumbing budget blows up mid-renovation because you forgot about the $5,000 showerhead you really wanted.

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7. Pandemic Prices and the Return of Reasonable Costs

Ah, the pandemic—the time when construction prices soared higher than a tech IPO and schedules stretched longer than a Netflix binge. Luckily, the world is slowly returning to normal, and costs are becoming more predictable. Construction tech is evolving too, meaning new materials and techniques are making their way into the mainstream, lowering prices over time.

Expect a few more fluctuations, but new tech and materials mean you can have your dream house with a touch of innovation that won’t bankrupt you.

8. The Joy of Custom Homes

At the end of the day, there’s nothing like a custom-built home that reflects you. Sure, new homes in a development might be cheaper, but they’re also a little like fast food—mass-produced and a bit generic. When you opt for a custom home or a high-end renovation, you’re not just creating a place to live; you’re crafting a lifestyle.

Custom homes say something about who you are. And let’s face it—when it comes to luxury, custom beats cookie-cutter every time. It’s a reflection of your personality, your tastes, and your ability to spend money on that walk-in closet with mood lighting.

Pro Tip: In the end, whether you’re building from scratch or renovating an existing property, remember that the best investment you can make is one that matches both your lifestyle and your budget. Find that balance, and you’ll be living the dream, not just in the home, but in your wallet too.

Final Thoughts: Build Smart, Live Happy

Building or renovating a home is no small feat, but with careful planning, a realistic budget, and the right experts by your side, it’s one of the most rewarding projects you’ll ever take on. Whether you’re starting from scratch, adding an extension, or giving your place a facelift, the key is to understand what you’re up against, budget for the unexpected, and keep a close eye on every penny. And remember, when in doubt—hire the pros. Because while you might be good with a hammer, they’re the ones who know how to make your dream home a reality without you needing to start a GoFundMe.

Good luck, and happy building!

Do you have questions about building or buying? I’m always happy to help! Get in touch today by calling 416-824-1242, emailing robert@lifeofluxury.ca, or filling out the form on this page.

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How Much Does it Cost to Build a House in Ontario: Crafting a Space that’s You (Without Losing Your Shirt)

1. Before You Dive In: Know What You’re Getting Into