Building a custom house in the Greater Toronto Area costs roughly $520 to $1,130 per square foot in hard construction costs alone, according to Altus Group’s 2025 Canadian Cost Guide. A more standard single-family house runs $200 to $275 per square foot. Neither figure includes land, design, City fees, site work or HST. This guide shows what the per-square-foot numbers cover, what they leave out, and what a 2,500 sq ft house really costs once you add the rest.
Cost per square foot to build a house in Toronto
Altus Group publishes the most widely used construction cost benchmarks in Canada. Its 2025 guide gives these hard-cost ranges for wood-frame houses:
- Single family, unfinished basement: $200 to $275 per sq ft in the GTA, and $140 to $225 in Ottawa.
- Custom-built single family: $520 to $1,130 per sq ft in the GTA, and $500 to $1,000 in Ottawa.
Altus released its 2026 edition in April 2026. A builder’s summary of that edition reports a similar GTA custom-home range of $500 to $1,130 per sq ft, so the 2025 figures remain a fair guide.
View the data
| House type | Low ($/sq ft) | High ($/sq ft) |
|---|---|---|
| Single family (GTA) | $200 | $275 |
| Single family (Ottawa) | $140 | $225 |
| Custom built (GTA) | $520 | $1,130 |
| Custom built (Ottawa) | $500 | $1,000 |
The gap between the low and high end is mostly finish level and complexity: structural spans, glazing, custom millwork, mechanical systems and exterior materials. A builder-grade house and an architect-designed custom home are different products, not different prices for the same thing.
What the per-square-foot number leaves out
The Altus figures are hard construction costs on a level, open site with stable soil and average-quality finishes. They exclude:
- land, legal fees and land transfer tax
- design, engineering and other soft costs
- municipal fees and development charges
- site development, such as demolition, servicing, retaining walls and landscaping
- contingency and HST
Basement and garage areas are also excluded from the floor area the rate applies to. That matters on infill lots, where the basement is often a large share of the house.
City of Toronto fees
Building permit fees. For a new house, the City charges $18.56 per square metre of floor area in 2026, with a minimum fee of $214.79. A 2,500 sq ft house (about 232 m²) pays about $4,300.
Development charges. The standard rate for a single or semi-detached house is $137,846, effective June 26, 2025. The City has approved a reduction program that cuts this to $55,138 for qualifying permits issued from March 30, 2026. The reduction depends on a provincial funding agreement, so confirm the rate that applies on the day you pull your permit. If you are replacing an existing house, ask the City whether a credit applies.
A worked example: 2,500 sq ft custom house
Take a 2,500 sq ft custom house on a Toronto lot you already own. At the Altus GTA range, hard costs alone come to $1.3 million at the low end and $2.8 million at the high end. Add about $4,300 for the building permit and $55,138 to $137,846 in development charges, depending on which rate applies.
View the data
| Item | Amount |
|---|---|
| Hard cost, low | $1.30M |
| Hard cost, high | $2.83M |
| Development charge (standard) | $137,846 |
| Development charge (reduced) | $55,138 |
| Building permit fee | $4,311 |
On top of that, budget for design and engineering, surveys, demolition, servicing and utility connections, landscaping, HST and a contingency. Get these as quotes, not guesses. On an infill lot, site work and soft costs are where first budgets most often fall short.
HST and rebates
If you build your own home, you may be able to claim the Ontario new housing rebate. According to the Canada Revenue Agency, the maximum is $24,000 if you paid HST on the land and $16,080 if you did not. If you buy a new home from a builder, separate federal and Ontario first-time buyer rebates may apply. Check eligibility in CRA guide RC4028 before you count on any rebate.
Where house budgets go wrong
- Assuming the site is easy. The benchmarks assume level ground and good soil. Rock, poor soil, a high water table or a tight infill lot can add real cost.
- Choosing finishes late. Finish selections drive the gap between $520 and $1,130 per sq ft. Make the big choices before you tender.
- Forgetting escalation. The 2025 figures do not reflect tariffs. Statistics Canada reports residential construction costs up 2.7% year over year in the third quarter of 2026. See our Q3 construction cost update.
- Skipping contingency. Every house has surprises. See how much contingency to carry.
What to do before you commit
- Set a realistic target per square foot. Match it to the finish level you actually want, not the low end of the range.
- Build a total project budget. Include land, soft costs, City fees, site work, HST and contingency. Our guide to total project cost lists what to include.
- Confirm City fees early. Check the development charge rate and any credits with the City before you finalize the budget.
- Get two or three builder prices on the same drawings. Compare them line by line, not just on the total.
- Read the rest of the series. See the steps to build a house in Ontario, how long it takes and how to finance it.
Go deeper: how to finance building a house in Canada and where Toronto home prices are heading.
FAQ
How much does it cost to build a house in Toronto in 2026?
Altus Group's 2025 Canadian Cost Guide puts hard construction costs for a custom-built single-family house in the GTA at $520 to $1,130 per square foot, and a standard single-family house at $200 to $275. These figures exclude land, design, City fees, site work, contingency and HST.
What City fees apply to a new house in Toronto?
The 2026 building permit fee for a new house is $18.56 per square metre. The standard development charge for a single or semi-detached house is $137,846 (effective June 26, 2025), and a City reduction program can lower it to $55,138 for qualifying permits issued from March 30, 2026.
The bottom line
In the GTA, a custom house costs $520 to $1,130 per square foot to build, and that is before land, fees, site work and tax. The owners who stay on budget are the ones who price the whole project, not just the building. Planning a custom home and want an independent check on the budget? Book a 30-minute call.
Sources: Altus Group, 2025 Canadian Cost Guide (PDF); Altus Group, Canadian Cost Guide; Route Homes, custom home cost guide (summary of the 2026 Altus edition); City of Toronto, building permit fees; City of Toronto, development charge rates (June 26, 2025); City of Toronto, development charge reduction program (July 2026); CRA, RC4028 GST/HST new housing rebate; Statistics Canada, Building construction price indexes, Q3 2026. Cover photo: André François McKenzie on Unsplash (Unsplash Licence). The worked example is our calculation and is illustrative, not a quote.