The short answer.
New custom homes we price in 2026 start at about $330 per square foot of above-grade space with mid-level finishes, and run up to about $500 with premium finishes, before land and HST. Add a finished basement, design and permits, contingency, demolition and new services, and a typical 3,200 sq ft home runs about $1.45M to $2.32M all in.
Three typical budgets.
Two-storey homes with a finished basement, replacing an existing house:
| Home size, above grade | Construction | All-in budget |
|---|---|---|
| 2,500 sq ft | $825K–$1.25M | $1.14M–$1.84M |
| 3,200 sq ft | $1.06M–$1.6M | $1.45M–$2.32M |
| 4,500 sq ft | $1.49M–$2.25M | $2.02M–$3.23M |
Here’s how the middle example breaks down:
| Item | Low | High |
|---|---|---|
| Construction: 3,200 sq ft at $330 to $500 | $1,056,000 | $1,600,000 |
| Finished basement: about 1,600 sq ft at 35% of the rate | $185,000 | $280,000 |
| Design, engineering, permits and fees (8%) | $99,000 | $150,000 |
| Contingency (5 to 10%) | $62,000 | $188,000 |
| Demolition and disconnections | $25,000 | $45,000 |
| Site services and connections | $20,000 | $60,000 |
| Total, rounded | $1.45M | $2.32M |
Our rates by project type.
Construction rates are per square foot of above-grade floor area. The same numbers drive every budget we give, including the range in your Lot Check:
| Item | Rate |
|---|---|
| New custom home | From $330 per sq ft with mid-level finishes, up to about $500 |
| Multiplex, including stairs and common areas | $285 to $375 per sq ft |
| Garden or laneway suite | From $385 per sq ft, up to about $575 |
| Addition | From $400 per sq ft, up to about $550 |
| Major renovation | $150 to $350 per sq ft |
| Finished basement | 35% of the above-grade rate |
| Separate basement apartment | 75% of the above-grade rate |
| Design, engineering, permits and fees | 8% of construction |
| Contingency | 5 to 10% |
| Demolition and disconnections | $25,000 to $45,000 |
| Site services and connections | $20,000 to $60,000 |
The low end of each range assumes mid-level finishes; the high end allows for premium finishes, complex forms and difficult sites.
What the price per square foot covers.
Our construction rate covers the house itself: foundations and waterproofing, framing, roofing, windows and doors, insulation and air sealing, heating, cooling and ventilation, plumbing and electrical, drywall, cladding, and the interior finishes you choose within your allowances: kitchen, baths, flooring, millwork and stairs.
We price the rest as separate lines so nothing hides in the rate: the basement (35% of the above-grade rate when finished, 75% as a separate apartment with its own kitchen, bath and entrance), design, engineering, permits and fees (8%), a contingency of 5 to 10%, demolition ($25,000 to $45,000) and new water, sewer and hydro connections ($20,000 to $60,000).
What moves the number.
- Finishes. Custom millwork, stone, large windows and premium appliances can add $100 or more per square foot.
- Complexity. Multiple roof planes, long spans, cantilevers and curved walls cost more than a simple form.
- Size. Smaller homes cost more per square foot, because kitchens, baths and mechanical systems don’t shrink with the house.
- The basement. Walk-outs, extra height and underpinning beside neighbours add cost.
- The site. Rock, high groundwater, shoring, tree protection and long service runs.
- Approvals. Variances, arborist reports and conservation authority permits add fees and time.
What’s not included.
- Land. Your lot, or the cost of buying one.
- HST. 13% on construction. Temporary relief may apply; see Ontario’s HST relief for homes built on your own lot.
- Development charges, where they apply. A replacement house usually gets credit for the one it replaces, and Ontario exempts the second and third units on a lot, but a severed lot or extra units can be charged.
- Financing, rent during construction and furniture.
How to control the budget.
- Start with a budget, then design to it. We price as we design, so you see cost before you fall for a plan.
- Keep the form simple and spend on what you touch every day.
- Decide finishes before construction; late changes cost the most.
- Consider finishing the basement later, or adding a suite that earns rent.
- Ask for a line-by-line proposal, not a single number.
General information, current to November 4, 2026. Rules and programs change; check the details for your property before you rely on them.