Custom Home Construction Cost in Toronto: What $1M, $2M, and $3M Gets You in 2026

If you are planning to build a custom home in Toronto, your first question is likely:

How much does it cost to build a custom home in Toronto in 2026?

In 2026, the average custom home construction cost in Toronto ranges from:

  • 350 to 450 dollars per square foot for mid-range homes
  • 450 to 650 dollars per square foot for high-end homes
  • 650 to 1,000 dollars per square foot or more for luxury estates

Estimated budgets:

  • 1 million dollars: Basic custom home on an existing lot
  • 2 million dollars: High-end luxury home with premium finishes
  • 3 million dollars: Full luxury estate in prime Toronto neighborhoods

1 Million Dollar Custom Home in Toronto

A 1 million dollar construction budget, excluding land, can build a 2,500 to 3,000 square foot custom home in areas like North York, Scarborough, or parts of Etobicoke.

Typical Features

  • 3 to 4 bedrooms
  • 9 foot ceilings
  • Engineered hardwood flooring
  • Quartz countertops
  • Custom kitchen cabinetry
  • Mid-range appliance package
  • Brick and stucco exterior
  • Standard windows
  • Unfinished or basic finished basement

2 Million Dollar Custom Home in Toronto

A 2 million dollar budget allows for a high-end custom home in neighborhoods like Leaside, The Beaches, and Lawrence Park.

Typical Features

  • 3,500 to 4,500 square feet
  • 10 foot ceilings on main floor
  • Premium architectural design
  • Luxury kitchen with high-end appliances
  • Custom millwork throughout
  • Heated bathroom floors
  • Smart home integration
  • Designer lighting package
  • Fully finished basement with gym or home theatre
  • Upgraded exterior stonework
  • Professional landscaping

3 Million Dollar Luxury Custom Home in Toronto

A 3 million dollar construction budget allows for a fully customized luxury estate in prestigious areas such as Forest Hill, Rosedale, or York Mills.

Typical Features

  • 5,000 square feet or more
  • Statement architectural design
  • Natural stone exterior
  • Elevator
  • Wine cellar
  • Radiant heated floors throughout
  • Spa-inspired bathrooms
  • Imported slab stone finishes
  • Floating or architectural staircase
  • Full home automation system
  • Outdoor kitchen and covered terrace
  • Premium landscaping and hardscaping

Toronto Custom Home Cost Per Square Foot in 2026

Build Level Average Cost Per Sq Ft
Mid-Range Custom 350 to 450 dollars
High-End Custom 450 to 650 dollars
Luxury Estate 650 to 1,000 dollars plus

Costs depend on lot conditions, architecture, permits, materials, and labor. For a detailed guide, visit our Custom Home Building Cost in Toronto page.

Hidden Costs to Consider

  • Architectural drawings and engineering fees
  • City permits and inspections
  • Development charges
  • HST considerations
  • Landscaping and driveway
  • Utility connections
  • Temporary living arrangements

How to Control Your Custom Home Budget

  • Finalize design before construction
  • Avoid mid-project changes
  • Lock material selections early
  • Work with a transparent fixed-price builder
  • Plan for at least 10 percent contingency

Frequently Asked Questions

How much does it cost to build a 3,000 square foot house in Toronto?
A 3,000 square foot custom home typically costs between 1.1 million and 1.8 million dollars depending on finishes and design complexity.
Does 1 million dollars include land in Toronto?
Land is generally separate and can exceed 1 million dollars depending on location.
How long does it take to build a custom home in Toronto?
Most custom homes take 10 to 16 months from permit approval to completion.
Is building a custom home a good investment in Toronto?
Custom homes in desirable neighborhoods often appreciate strongly and have higher resale value compared to older homes.
Is it cheaper to renovate or build new in Toronto?
Major renovations can approach new build costs. A knockdown rebuild often provides better long-term value and energy efficiency.