Cost of Building a Custom Home in Toronto
Get a clear picture of the cost of building a custom home in Toronto, Ontario—from realistic custom home cost in Toronto and new home construction cost in Toronto to what you can expect per square foot, including the cost to build a luxury home in Toronto with a high-end custom home builder.
Building a custom home in Toronto is a major investment, especially in the city’s most desirable neighbourhoods. Areas like Forest Hill, Lawrence Park, Lytton Park, Leaside, Bedford Park, The Kingsway, York Mills and the best pockets of North York and Etobicoke attract families who want great schools, walkable streets and long-term property value. With that demand comes a very common question: how much does it actually cost to build a custom home in Toronto – typically between about $400 and $750 per square foot for construction alone in today’s market?
The answer depends on your lot, the size of your home, the complexity of the architecture and the quality of finishes you choose. On this page, you’ll find realistic ranges for custom home construction cost per square foot, example budgets by home size, how the total budget is typically divided, and how soft costs and location affect the final number. The goal is to give you a clear, honest framework before you start design and planning.
| Build Level | Approx. Cost per sq ft | Description |
|---|---|---|
| Low-Cost Average | $400 / sq ft | Efficient layout, solid structure and good finishes without extensive luxury details. |
| Medium-Cost Average | $525 / sq ft | Higher-end finishes, more custom details and built-ins, stronger emphasis on design. |
| High-Cost Average | $650+ / sq ft | Luxury homes with complex architecture, premium materials and extensive glazing and millwork. |
Low-Cost Average
Approx. Cost per sq ft:
$400 / sq ft
Description:
Efficient layout, solid structure and good finishes without extensive luxury details.
Medium-Cost Average
Approx. Cost per sq ft:
$525 / sq ft
Description:
Higher-end finishes, more custom details and built-ins, stronger emphasis on design.
High-Cost Average
Approx. Cost per sq ft:
$650+ / sq ft
Description:
Luxury homes with complex architecture, premium materials and extensive glazing and millwork.
Average Cost Per Square Foot to Build a Custom Home in Toronto
Most well-built custom homes in Toronto’s top neighbourhoods fall into three broad cost levels. These numbers focus on construction only and assume you are working with a reputable custom home builder using quality materials and trades. They do not include land, design, permits or HST.
Here is a simple overview of average construction cost per square foot:
These ranges reflect typical expectations in established Toronto neighbourhoods. Some highly customized, ultra-luxury homes with very complex structures, imported stone, large glass walls or highly specialized systems can go beyond these numbers, but this table is a reliable starting point for serious planning.
Example Construction Budgets by Home Size
Once you know the approximate cost per square foot, it becomes easier to picture the full construction budget for different home sizes. The table below uses the three cost levels above to show ballpark budgets for a range of common sizes.
These figures represent construction cost only. They do not include land purchase, architectural and engineering fees, permits, HST, financing, or major outdoor features like pools and extensive hardscaping.
| Home Size | Low-Cost (≈$400/sq ft) | Medium-Cost (≈$525/sq ft) | High-Cost (≈$650/sq ft) |
|---|---|---|---|
| 2,000 sq ft | $800,000 | $1,050,000 | $1,300,000 |
| 2,500 sq ft | $1,000,000 | $1,312,500 | $1,625,000 |
| 3,000 sq ft | $1,200,000 | $1,575,000 | $1,950,000 |
| 3,500 sq ft | $1,400,000 | $1,837,500 | $2,275,000 |
| 4,000 sq ft | $1,600,000 | $2,100,000 | $2,600,000 |
| 4,500 sq ft | $1,800,000 | $2,362,500 | $2,925,000 |
| 5,000 sq ft | $2,000,000 | $2,625,000 | $3,250,000 |
2,000 sq ft
Low-Cost (≈$400/sq ft):
$800,000
Medium-Cost (≈$525/sq ft):
$1,050,000
High-Cost (≈$650/sq ft):
$1,300,000
2,500 sq ft
Low-Cost (≈$400/sq ft):
$1,000,000
Medium-Cost (≈$525/sq ft):
$1,312,500
High-Cost (≈$650/sq ft):
$1,625,000
3,000 sq ft
Low-Cost (≈$400/sq ft):
$1,200,000
Medium-Cost (≈$525/sq ft):
$1,575,000
High-Cost (≈$650/sq ft):
$1,950,000
3,500 sq ft
Low-Cost (≈$400/sq ft):
$1,400,000
Medium-Cost (≈$525/sq ft):
$1,837,500
High-Cost (≈$650/sq ft):
$2,275,000
4,000 sq ft
Low-Cost (≈$400/sq ft):
$1,600,000
Medium-Cost (≈$525/sq ft):
$2,100,000
High-Cost (≈$650/sq ft):
$2,600,000
4,500 sq ft
Low-Cost (≈$400/sq ft):
$1,800,000
Medium-Cost (≈$525/sq ft):
$2,362,500
High-Cost (≈$650/sq ft):
$2,925,000
5,000 sq ft
Low-Cost (≈$400/sq ft):
$2,000,000
Medium-Cost (≈$525/sq ft):
$2,625,000
High-Cost (≈$650/sq ft):
$3,250,000
Seeing the numbers side by side helps you think about your priorities. A slightly smaller home with a higher finish level may suit your lifestyle and neighbourhood better than a much larger home with basic finishes. A good custom home builder can walk you through different scenarios so the square footage, budget and quality all stay in balance.
How the Construction Budget Is Usually Divided
Behind every total number is a detailed breakdown of where the money actually goes. While every project is different, most custom homes in Toronto follow a similar pattern when it comes to how the construction budget is distributed across major categories.
The table below shows typical ranges for each category and what is generally included.
| Category | Approx. Share of Build Budget | What’s Included |
|---|---|---|
| Structure | 25–30% | Excavation, foundation, basement slabs, framing, roof structure, structural steel where required. |
| Exterior Envelope | 10–15% | Windows and exterior doors, exterior cladding (brick, stone, stucco, wood or panels), roofing finishes, soffits, fascia and eavestroughs. |
| Mechanical / Electrical / Plumbing | 15–20% | Heating and cooling systems, ductwork or hydronic piping, plumbing rough-ins and fixtures, electrical wiring, panel upgrades and lighting rough-ins. |
| Interior Finishes | 20–25% | Insulation and drywall, interior doors and trim, railings, flooring, painting and interior wall treatments. |
| Kitchen & Bathrooms | 10–15% | Custom or semi-custom cabinetry, countertops, tile work, shower systems, tubs, vanities and plumbing fixtures. |
| Site Work & Landscaping | 5–10% | Driveway base and paving allowance, front walkways, basic decks or patios, grading and basic sod. |
| Builder Management & Overhead | 10–15% | Project management, on-site supervision, scheduling and coordination, site safety, insurance and temporary facilities. |
Structure
Approx. Share of Build Budget:
25–30%
What’s Included:
Excavation, foundation, basement slabs, framing, roof structure, structural steel where required.
Exterior Envelope
Approx. Share of Build Budget:
10–15%
What’s Included:
Windows and exterior doors, exterior cladding (brick, stone, stucco, wood or panels), roofing finishes, soffits, fascia and eavestroughs.
Mechanical / Electrical / Plumbing
Approx. Share of Build Budget:
15–20%
What’s Included:
Heating and cooling systems, ductwork or hydronic piping, plumbing rough-ins and fixtures, electrical wiring, panel upgrades and lighting rough-ins.
Interior Finishes
Approx. Share of Build Budget:
20–25%
What’s Included:
Insulation and drywall, interior doors and trim, railings, flooring, painting and interior wall treatments.s.
Kitchen & Bathrooms
Approx. Share of Build Budget:
10–15%
What’s Included:
Custom or semi-custom cabinetry, countertops, tile work, shower systems, tubs, vanities and plumbing fixtures.
Site Work & Landscaping
Approx. Share of Build Budget:
5–10%
What’s Included:
Driveway base and paving allowance, front walkways, basic decks or patios, grading and basic sod.
Builder Management & Overhead
Approx. Share of Build Budget:
10–15%
What’s Included:
Project management, on-site supervision, scheduling and coordination, site safety, insurance and temporary facilities.
This breakdown also explains why changes made later in the process, especially to structure, mechanical systems and finishes, can have a significant impact on the budget. The earlier you align your wish list with a realistic cost breakdown, the smoother your project tends to run.
Understanding Soft Costs and Professional Fees
Construction cost is only part of the total investment. Soft costs and professional fees sit on top of the build number and can add a meaningful amount, especially in Toronto’s more regulated areas where additional reports and approvals are needed.
Soft costs usually include architecture, engineering, surveys, permit fees, demolition and financing expenses. Together, they can easily reach ten to twenty per cent of the construction cost, sometimes more for complex properties or projects requiring multiple approvals.
Here is a simple summary of the most common soft cost items:
| Soft Cost Item | Approx. % of Build Cost | Notes |
|---|---|---|
| Architectural Design | 5–8% | Concept design, planning, permit drawings, construction drawings and coordination with the rest of the team. |
| Engineering & Surveys | 2–4% | Structural design, mechanical design, topographical survey, grading plan and geotechnical reports if required. |
| Permits & Approvals | 1–3% | Building permit fees, Committee of Adjustment applications, conservation authority approvals where applicable. |
| Demolition & Site Reports | 2–3% | Demolition of the existing home, disposal, and any environmental or asbestos assessment and remediation. |
| Financing & Carrying Costs | 5–8% | Interest on construction loans, property taxes, builder’s risk insurance and utilities during construction. |
| Premium Landscaping & Outdoor Features | 5–15%+ | Pools and spas, outdoor kitchens, extensive hardscaping, retaining walls, pergolas and covered outdoor living areas. |
Architectural Design
Approx. % of Build Cost:
5–8%
Notes:
Concept design, planning, permit drawings, construction drawings and coordination with the rest of the team.
Engineering & Surveys
Approx. % of Build Cost:
2–4%
Notes:
Structural design, mechanical design, topographical survey, grading plan and geotechnical reports if required.
Permits & Approvals
Approx. % of Build Cost:
1–3%
Notes:
Building permit fees, Committee of Adjustment applications, conservation authority approvals where applicable.
Demolition & Site Reports
Approx. % of Build Cost:
2–3%
Notes:
Demolition of the existing home, disposal, and any environmental or asbestos assessment and remediation.
Financing & Carrying Costs
Approx. % of Build Cost:
5–8%
Notes:
Interest on construction loans, property taxes, builder’s risk insurance and utilities during construction.
Premium Landscaping & Outdoor Features
Approx. % of Build Cost:
5–15%+
Notes:
Pools and spas, outdoor kitchens, extensive hardscaping, retaining walls, pergolas and covered outdoor living areas.
When you combine construction, soft costs and land purchase, you arrive at the complete picture of the cost of building a custom home in Toronto. A transparent builder will help you account for each category from the very beginning so there are fewer surprises later.
How Neighbourhood Affects Custom Home Cost
Not all Toronto neighbourhoods behave the same way when it comes to custom home budgets. In some areas, the market strongly supports higher levels of architecture and finishing; in others, a more modest approach makes more sense. Lot size, topography and local zoning can also influence the final cost.
The table below provides indicative construction cost ranges per square foot for different Toronto areas. These numbers are general and assume quality custom homes with reputable builders.
| Neighbourhood | Typical Build Level | Approx. Cost per sq ft | Notes |
|---|---|---|---|
| Forest Hill | High-end / Luxury | $550–$700+ / sq ft | Prestige streets, strong expectations for architecture, stone and glazing, and very high resale values. |
| Lawrence Park / Lytton Park | High-end / Luxury | $525–$675+ / sq ft | Family-oriented luxury homes with a mix of modern and transitional designs. |
| Bedford Park / Ledbury Park | Medium to High-end | $475–$625+ / sq ft | Popular infill neighbourhood for custom homes with good schools and transit. |
| Leaside | Medium to High-end | $475–$625+ / sq ft | Established family area where well-designed custom homes are in high demand. |
| The Kingsway (Etobicoke) | High-end | $500–$650+ / sq ft | Larger lots with classic and modern luxury builds close to parks and transit. |
| York Mills / Prime North York | High-end / Estate | $525–$675+ / sq ft | Estate-style homes on generous lots, often with extensive landscaping or outdoor features. |
| Other Midtown / Emerging Areas | Medium to High-end | $425–$575+ / sq ft | Good opportunity to balance custom home quality with long-term value growth. |
Forest Hill
Typical Build Level:
High-end / Luxury
Approx. Cost per sq ft:
$550–$700+ / sq ft
Notes:
Prestige streets, strong expectations for architecture, stone and glazing, and very high resale values.
Lawrence Park / Lytton Park
Typical Build Level:
High-end / Luxury
Approx. Cost per sq ft:
$525–$675+ / sq ft
Notes:
Family-oriented luxury homes with a mix of modern and transitional designs.
Bedford Park / Ledbury Park
Typical Build Level:
Medium to High-end
Approx. Cost per sq ft:
$475–$625+ / sq ft
Notes:
Popular infill neighbourhood for custom homes with good schools and transit.
Leaside
Typical Build Level:
Medium to High-end
Approx. Cost per sq ft:
$475–$625+ / sq ft
Notes:
Established family area where well-designed custom homes are in high demand.
The Kingsway (Etobicoke)
Typical Build Level:
High-end
Approx. Cost per sq ft:
$500–$650+ / sq ft
Notes:
Larger lots with classic and modern luxury builds close to parks and transit.
York Mills / Prime North York
Typical Build Level:
High-end / Estate
Approx. Cost per sq ft:
$525–$675+ / sq ft
Notes:
Estate-style homes on generous lots, often with extensive landscaping or outdoor features.
Other Midtown / Emerging Areas
Typical Build Level:
Medium to High-end
Approx. Cost per sq ft:
$425–$575+ / sq ft
Notes:
Good opportunity to balance custom home quality with long-term value growth.
In the highest-end areas, homeowners typically choose the medium to high end of the cost ranges because the neighbourhood and future resale potential justify the investment. In emerging areas, it can be smarter to keep the budget closer to the medium range while still focusing on solid construction and smart design.
Design, Finish Level and Their Impact on Cost
Two homes with the same square footage can have very different construction costs depending on design and finish level. A simple rectangular footprint with a straightforward roof, standard window sizes and clean interior lines will always be more efficient to build than a heavily articulated form with multiple jogs, curves and level changes.
Finishes influence the budget just as strongly. Choosing custom millwork throughout the home, large format porcelain slabs, European windows, high-end appliances and spa-style bathrooms will push a project toward the higher end of the cost per square foot range. On the other hand, a carefully selected mix of standard and upgraded materials can deliver a clean, contemporary home without reaching luxury-level numbers.
A good custom home builder in Toronto will often go through each space with you, explaining where it makes sense to invest and where you can save without compromising the overall look and performance of the home.
Timeline and Planning Expectations
Cost and time are always connected. The more complex the design and approvals, the longer the overall process. From the first design meeting to move-in, most full custom homes in Toronto take between eighteen and thirty months when you include design, permits and construction.
The early stages are about clarifying your goals, defining the budget and designing a home that fits both the lot and your lifestyle. The permit stage can be straightforward or more involved if you need minor variances through the Committee of Adjustment. Construction itself usually ranges from ten to eighteen months depending on square footage, detailing, season and how quickly decisions are made along the way.
When builder, architect and homeowner are aligned from the beginning, the schedule becomes more predictable and the project is much easier to manage financially.
Is Building a Custom Home in Toronto Worth the Cost?
Buying an existing home in a prime Toronto neighbourhood can mean living with an older layout, lower ceilings, dated mechanical systems and energy performance that no longer matches modern standards. Renovations can help, but there is a limit to how much you can change without affecting structure and cost.
A new custom home allows you to design your spaces around how you actually live: open main floors, proper mudrooms, larger windows, better natural light, functional kitchens and bathrooms, and private bedroom suites. You also benefit from current building codes, better insulation, more efficient mechanical systems and lower maintenance in the early years.
The cost of building a custom home in Toronto is significant, but for many families it is a long-term investment in lifestyle, comfort and future value. With the right team, a clear budget framework and realistic expectations about both construction and soft costs, the process becomes much more manageable—and the final result is a home that truly fits your life and your chosen neighbourhood.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients
.Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Marvel Homes, is a leading luxury and custom home builder in Toronto with a mission to create homes that offer safety, spaciousness, and reliability. With over 35 years of experience in the industry, we have established ourselves as a top choice for those seeking a unique and custom home-building experience. Our services go beyond just construction and include maintenance, renovation, and remodeling solutions, providing a one-stop experience for our clients.
Get Your
Feasibility Study
Our feasibility study gives you a clear understanding of what’s possible for your property. Through regulatory considerations, budget guidance, and early design direction, we help you make informed decisions with confidence before moving into full planning and construction
FAQ
Frequently Asked Questions About Custom Home Costs in Toronto, Ontario
For most quality projects, the construction cost to build a custom home in Toronto typically falls in the range of $400–$650+ per sq ft. For example, a 3,000 sq ft home might have a construction budget between roughly $1.2M and $1.95M, depending on design and finishes.
Cost per square foot usually covers the main construction items: structure, exterior, mechanical and electrical systems, and interior finishes. In many Toronto projects this makes up about 70–85% of the build-related spending, while design, permits and other soft costs add the remaining 15–30% on top.
No. The cost of the lot is separate from construction. In Toronto, it’s common for land to represent 40–60% of the total investment, with construction and soft costs covering the rest.
Soft costs for a custom home in Toronto often land around 10–20% of the construction budget. For example, if your build cost is $1.5M, it’s reasonable to expect $150,000–$300,000 in architecture, engineering, surveys, permits and related approvals.
Using typical ranges, a 2,500 sq ft home might fall roughly between $1M and $1.6M for construction, while a 4,000 sq ft home might sit between $1.6M and $2.6M. The exact number depends on whether you’re closer to the $400, $525 or $650+ per sq ft level.
Light cosmetic updates usually cost less than new construction, but once a renovation involves major structural work and full mechanical upgrades, budgets can approach 70–90% of new-build cost. When renovation estimates reach $800,000–$1,200,000+, many owners seriously compare that to a complete custom build.
From first design meeting to move-in, most custom homes in Toronto take between 18 and 30 months. Design and permits often require 6–12 months, and construction typically takes another 10–18 months, depending on size and complexity.
You should speak with a custom home builder as soon as you know your approximate size target—say 2,500–4,000+ sq ft—and your rough budget range. Early input helps keep the final design within a realistic construction window, often somewhere between $1M and $2.5M+ for many Toronto custom home projects.
Our Blog
Lasts News!
Recognized for outstanding craftsmanship and innovative design in luxury home building.
Recognized for outstanding craftsmanship and innovative design in luxury home building.
Recognized for outstanding craftsmanship and innovative design in luxury home building.
Recognized for outstanding craftsmanship and innovative design in luxury home building.