How Much Does It Cost to Build a House in Ontario?

In this guide, we explore the cost of building a house in Ontario cities such as Toronto. The building costs tend to vary depending on location. Keep reading to learn more.

The most frequently asked question among homeowners is: “How much does it cost to build a house in Ontario?” Constructing a new home can be a daunting experience, but it’s worth the sacrifice. It’s a costly investment that requires proper financial planning.

When building a new house in Ontario, the first thing that will come into your mind is the cost. You want to spend the lowest amount possible to get a high-quality house to fulfill your needs and lifestyle needs. So what’s the exact cost of building a house in Ontario?

In this guide, we explore the cost of building a house in Ontario cities such as Toronto. The building costs tend to vary depending on location. Keep reading to learn more.

How much does it cost to build a house in Toronto?

If you plan to buy a home in Toronto, you won’t stress yourself over building costs. All you’ll have to do is strike a deal with a reputable builder who sells houses at affordable prices, such as Paradise Developments. So, what does it cost to build a new house?

Most builders usually give estimates to potential customers on a ‘price per square foot’ basis. It gives an insight into what your new house will cost upon completion. However, many other factors may affect the final building cost, including the building design.

Cost per Square Foot to Build a House in Ontario

The ‘price per square foot’ usually varies depending on the type of building you intend to construct, whether custom-build or self-build. The latter’s price range from $160 to $200 per square foot. Custom home builders charge between $210 and $240 per square foot.

When coming up with price quotes, Ontario custom home builders will determine prices within the $150 – $300 range. For semi-custom homes, be ready to spend around $200 per square foot. However, the price varies depending on size, location, and finishes.

Factors that Influence the Building Costs per Square Foot

When planning to build a house in Ontario, it’s crucial to consider things like site work, interior finishes, and exterior finishes as they influence costs. In a nutshell, let’s look at what composes the ‘price per square foot’ and the factors that might affect it.

1. Building Permit Costs

The building permit costs vary depending on the location or municipality you intend to build the house. Do you want to build your house in the rural, suburbs, or big Canadian cities? The permits tend to be more costly in metropolitan areas.

The government usually review and update regulations in the construction sector. You might pay additional costs when trying to get every aspect of your house up to code. So, consider finding out what your municipality charges currently for building permits.

2. Style of the House


Are you planning to build a one-story or two-story house? It’s generally cheaper to ‘build up’ than to ‘build out.’ When building up, you use less concrete, roofs, and other building materials. The cost will increase when you increase the number of stories in the home.

A three-story house will generally cost more than a one-story house. That’s because of the additional floors, scaffolding, and stairs. Also, a story & ½ house will cost more than a full two-story house because of the labour involved in framing the roof.

3. Size and Shape of the House

Bigger houses usually cost more than smaller houses. However, altering your house design to ‘cut’ the square footage can be expensive in the long run. It creates more jogs and changes in the foundation and roof structures, which could cost you a lot of money.

Also, a house with a more complex shape and design can be costly due to the complexity of the roof structure and foundation. More corners and angles generally cost more, even though they add design and character to your house.

4. Hiring a Professional Builder


Will you act as the contractor during construction or hire a professional builder to oversee the entire project? It’s one of the factors that can influence the overall cost of your construction project. Compare the benefits and implications of each option.

Hiring a professional builder will generally cost you more unless you find one providing affordable services in Ontario. The good news is, working with builders is very beneficial as they understand all the aspects of building work. Their services are worth the cost.

5. Quality of Building Materials

The type of building materials used can also influence the overall cost of your house in Ontario. From stone veneer and brick to lightweight sidings like vinyl, materials will significantly impact the cost. So, use materials that fall within your budget.

Another thing you must also consider when selecting building materials is the source. Are the required raw materials available near the construction site? If yes, you’ll spend a lower amount of money on transportation. Importing the raw materials can be costly.

6. Location of the House

Another important thing to note is that the average cost of building a new house in Toronto is different from the cities in other provinces. Here are the average building prices per square foot in five Canadian cities.

  • Toronto: $110 – $210
  • Halifax: $115 – $150
  • Calgary: $115 – $150
  • Vancouver $130 – $230
  • Montreal $95 – $160

The average cost to build a house in smaller cities is lower than in big cities. Note that the prices that builders quote don’t include other expenses such as land and permits required. That’s why most homeowners opt to renovate the existing property.

Final Words

How much does it cost to build a house in Ontario? Now that you know the answer to this question, you can look for a builder that understands your needs. Find a builder with many years of experience in the business. Compare the quotes of several builders and select one that offers affordable building services. That way, you’ll save more funds.