{"id":25274,"date":"2025-12-30T08:10:00","date_gmt":"2025-12-30T13:10:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=25274"},"modified":"2025-12-22T08:11:29","modified_gmt":"2025-12-22T13:11:29","slug":"how-much-does-it-cost-to-build-a-house","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/how-much-does-it-cost-to-build-a-house","title":{"rendered":"How Much Does it Cost to Build a House?"},"content":{"rendered":"\n\n\n<p>Building a home in Canada is becoming increasingly expensive. In fact, <a href=\"https:\/\/www.ctvnews.ca\/business\/real-estate\/article\/internal-government-documents-reveal-grim-housing-climate-in-canada\/\">government figures<\/a> show that the cost of building the average house in Canada has increased 58% since 2020. The government expects the cost to continue rising due to tariffs.<\/p>\n\n\n\n<p>With that in mind, you may be wondering how much it costs to build a house. The average cost ranges between $140 and $320 per square foot. However, the true answer depends on where you build and whether you opt for a stock home plan or design and build a fully custom dream home.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"key-takeaways\">Key Takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The type and size of the house being built directly influence the overall construction costs, with larger and more complex designs being more expensive<\/li><li>Some financial institutions offer new construction loans or construction mortgages that are similar to traditional mortgages, but usually involve a higher interest rate<\/li><li>Considering your lifestyle needs can help you determine where to invest extra money and where to save<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-the-average-cost-to-build-a-home?\">What is the Average Cost to Build a Home?<\/h2>\n\n\n\n<p>There are many factors that go into determining how much it costs to build a home, including location, size, and the materials used. That being said, according to <a href=\"https:\/\/www.altusgroup.com\/featured-insights\/canadian-cost-guide\/#overview\">Altus Group<\/a>, the average cost per square foot ranges from $140 to $320 for a single-family residential home with an unfinished basement. However, the price for a custom-built home could increase to over $1,250 per square foot.<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/costs-of-owning-a-home\">What\u2019s the Average Cost To Own a Home?<\/a><\/p><\/section>\n\n\n\n<p>To get a better idea of how much a newly built home could cost in major cities across the country, we\u2019ve calculated a price range for a 2,000-square-foot single-family home in Canada. These cost estimates are intended as rough estimates.<\/p>\n\n\n\n<div id=\"footable_parent_25283\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui colored_table\">\n                <table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"25283\" data-filter-delay=\"1000\" aria-label=\"Cost per square foot to build a home in Canada\"            id=\"footable_25283\"\n           data-unique_identifier=\"ninja_table_unique_id_3712137254_25283\"\n           class=\" foo-table ninja_footable foo_table_25283 ninja_table_unique_id_3712137254_25283 ui table  nt_type_legacy_table hide_horizonal_borders hide_vertical_borders striped compact vertical_centered ninja_custom_color inverted footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_city \">City<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_average_cost_to_build_a_2_000_sq_ft_home \">Average cost to build a 2,000 sq ft home\u00b9<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_average_cost_to_build_a_2_000_sq_ft_custom_built_home \">Average cost to build a 2,000 sq ft custom-built home\u00b2<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"17427\" class=\"ninja_table_row_0 nt_row_id_17427\">\n            <td>Vancouver, BC<\/td><td>$400,000 to $640,000<\/td><td>$990,000 to $2,500,000<\/td>        <\/tr>\n            <tr data-row_id=\"17428\" class=\"ninja_table_row_1 nt_row_id_17428\">\n            <td>Calgary, AB<\/td><td>$350,000 to $530,000<\/td><td>$950,000 to $2,180,000<\/td>        <\/tr>\n            <tr data-row_id=\"17429\" class=\"ninja_table_row_2 nt_row_id_17429\">\n            <td>Edmonton, AB<\/td><td>$340,000 to $530,000<\/td><td>$950,000 to $2,180,000<\/td>        <\/tr>\n            <tr data-row_id=\"17430\" class=\"ninja_table_row_3 nt_row_id_17430\">\n            <td>Winnipeg, MB<\/td><td>$330,000 to $500,000<\/td><td>$940,000 to $2,100,000<\/td>        <\/tr>\n            <tr data-row_id=\"17431\" class=\"ninja_table_row_4 nt_row_id_17431\">\n            <td>Greater Toronto Area, ON<\/td><td>$400,000 to $550,000<\/td><td>$1,040,000 to $2,260,000<\/td>        <\/tr>\n            <tr data-row_id=\"17432\" class=\"ninja_table_row_5 nt_row_id_17432\">\n            <td>Ottawa, ON<\/td><td>$280,000 to $450,000<\/td><td>$1,000,000 to $2,000,000<\/td>        <\/tr>\n            <tr data-row_id=\"17433\" class=\"ninja_table_row_6 nt_row_id_17433\">\n            <td>Montreal, QC<\/td><td>$290,000 to $410,000<\/td><td>$880,000 to $1,750,000<\/td>        <\/tr>\n            <tr data-row_id=\"17434\" class=\"ninja_table_row_7 nt_row_id_17434\">\n            <td>Halifax, NS<\/td><td>$280,000 to $430,000<\/td><td>$690,000 to $1,390,000<\/td>        <\/tr>\n            <tr data-row_id=\"17435\" class=\"ninja_table_row_8 nt_row_id_17435\">\n            <td>St. John\u2019s, NL<\/td><td>$300,000 to $420,000<\/td><td>$700,000 to $1,400,000<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<p><sub>\u00b9Estimated price ranges are for a wood-framed single-family home with an unfinished basement and do not include the cost of buying land<br>\u00b2Estimated price ranges are for a wood-framed custom-built single-family home and do not include the cost of buying land<\/sub><\/p>\n\n\n\n<p>In major Canadian cities, high demand for housing significantly impacts construction costs. In urban areas like <a href=\"https:\/\/www.zolo.ca\/toronto-real-estate\">Toronto<\/a>, the cost to build a detached house can climb to $200 to $275 per square foot or more. Custom-built homes can easily cost double or triple the price per square foot compared to cookie-cutter production homes, and prices for custom luxury homes can exceed $1,250 per square foot in high-cost areas like <a href=\"https:\/\/www.zolo.ca\/vancouver-real-estate\">Vancouver<\/a>. The average cost per square foot for a production home is lowest in <a href=\"https:\/\/www.zolo.ca\/halifax-real-estate\">Halifax<\/a>, <a href=\"https:\/\/www.zolo.ca\/st-johns-real-estate\">St. John\u2019s<\/a>, Montreal, and <a href=\"https:\/\/www.zolo.ca\/ottawa-real-estate\">Ottawa<\/a>, ranging from $140 to $225, and highest in Vancouver, at around $200 to $320.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"buying-vs.-building-a-house\">Buying vs. Building a House<\/h2>\n\n\n\n<p>There are benefits and drawbacks to both buying and building a home. Choosing between purchasing an existing home and building on bare land means weighing the purchase price, customization options, and the process of creating your own home. It\u2019s important to take the time to consider which option works best for you.&nbsp;<\/p>\n\n\n\n<div id=\"footable_parent_25284\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui colored_table\">\n                <table data-ninja_table_instance=\"ninja_table_instance_1\" data-footable_id=\"25284\" data-filter-delay=\"1000\" aria-label=\"Buying vs Building\"            id=\"footable_25284\"\n           data-unique_identifier=\"ninja_table_unique_id_760783312_25284\"\n           class=\" foo-table ninja_footable foo_table_25284 ninja_table_unique_id_760783312_25284 ui table  nt_type_legacy_table hide_horizonal_borders hide_vertical_borders striped compact vertical_centered ninja_custom_color inverted footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_difference_between \">Difference between<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_buying \">Buying<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_building \">Building<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"17436\" class=\"ninja_table_row_0 nt_row_id_17436\">\n            <td>Timeline<\/td><td>Typical closing length is 30 to 60 days<\/td><td>Could be 12 to 18 months from buying land to moving in, longer for custom designs<\/td>        <\/tr>\n            <tr data-row_id=\"17437\" class=\"ninja_table_row_1 nt_row_id_17437\">\n            <td>Upfront cost<\/td><td>As little as 5% down<\/td><td>Typically at least 25% down<\/td>        <\/tr>\n            <tr data-row_id=\"17438\" class=\"ninja_table_row_2 nt_row_id_17438\">\n            <td>Customization<\/td><td>Can only customize through renovations<\/td><td>Nearly everything in the home can be customized<\/td>        <\/tr>\n            <tr data-row_id=\"17439\" class=\"ninja_table_row_3 nt_row_id_17439\">\n            <td>Condition<\/td><td>Varies depending on the home<\/td><td>New with warranties<\/td>        <\/tr>\n            <tr data-row_id=\"17440\" class=\"ninja_table_row_4 nt_row_id_17440\">\n            <td>Maintenance<\/td><td>Typically require more maintenance<\/td><td>Less maintenance required in the first few years of ownership<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<p><strong>Building might be for you if you:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Can wait up to a year or more to move in<\/li><li>Want total control over the finishes and floor plan<\/li><li>Have enough cash for a larger down payment<\/li><\/ul>\n\n\n\n<p><strong>Buying might be for you if you:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Want to move in soon<\/li><li>Have a smaller down payment<\/li><li>Don\u2019t want to make all of the decisions that come with building a new home<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-to-build-a-house\">How Much To Build a House<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"1045\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2025\/12\/cost-to-build-house-1024x1045.png\" alt=\"How much does it cost to build a house?\" class=\"wp-image-25278\"\/><\/figure>\n\n\n\n<p>When estimating the cost of building a home, it\u2019s essential to consider all factors, including land costs, site preparation, labour costs, and material prices. These building costs can vary significantly depending on the region, market conditions, and the project&#8217;s complexity.<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/how-much-house-can-i-afford\">How Much House Can I Afford?<\/a><\/p><\/section>\n\n\n\n<p>Construction costs can be categorized into hard costs (materials and labour) and soft costs (permits, fees, etc.).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Location<\/h3>\n\n\n\n<p>The cost of land is one of the most significant factors in determining the overall cost of building a home. Vacant land in rural areas may cost less than $10,000, but it can be difficult to find in major cities, or it may cost hundreds of thousands of dollars.&nbsp;<\/p>\n\n\n\n<p>Additionally, you may need to hire professionals to clear the land and level it before construction begins, which will add to the total cost of building a home.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cost of Labour<\/h3>\n\n\n\n<p>You\u2019ll need to work with many professionals when building a home, including general contractors, plumbers, electricians, roofers, architects and more. Labour costs can account for 30% to 60% of the total budget for building a house in Canada and are influenced by the availability of skilled trades and labour, which can vary significantly by region. General contractors&#8217; fees typically range from 10% to 20% of the total construction cost and may require an upfront payment of up to 10%.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cost of Materials<\/h3>\n\n\n\n<p>Material costs vary widely depending on current market conditions and the finishes you choose. For instance, a home with large windows, solid wood floors, and custom cabinetry will be more expensive than a home with standard windows, laminate flooring, and stock cabinets.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Level of Customization<\/h3>\n\n\n\n<p>A custom-built home is generally more expensive than a newly built home that comes with set plans from a builder. Unique features may require specialized professionals to design and install, which can add to the overall cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fees and Permits<\/h3>\n\n\n\n<p>You will need to get a building permit before you can start construction on your home. The cost will vary by region. Additionally, you will need to pay for inspectors to ensure your home is built to code.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"financing-options-for-building-a-new-home\">Financing Options for Building a New Home<\/h2>\n\n\n\n<p>Before building a home, you will need to figure out how you will pay for it. Options include a construction mortgage or a completion mortgage.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Construction mortgage (progress draw mortgage)<\/strong> &#8211; Construction loans pay out funds in stages known as \u201cdraws\u201d. Each draw is paid as a phase of the home construction is completed.  Then, once the home is finished and you have an occupancy permit, the mortgage is converted to a conventional mortgage. A <a href=\"https:\/\/www.zolo.ca\/blog\/how-much-is-a-down-payment\">down payment<\/a> of 25% to 30% may be required for a construction loan.&nbsp;<\/li><li><strong>Completion mortgage<\/strong> &#8211; A completion mortgage is given in one lump sum when the newly built home is completed. Essentially, the builder fronts the cost of building the home, and you purchase the home from them when it is ready for occupancy.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-save-money-on-your-new-build\">How to Save Money on Your New Build<\/h2>\n\n\n\n<p>We\u2019ve established that building a new house can be expensive; however, there are multiple ways to make building a new home more affordable, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Get multiple quotes<\/strong> &#8211; Obtain bids with detailed line-item breakdowns for accurate estimate comparison<\/li><li><strong>Choose a stock home plan <\/strong>&#8211; Choosing a pre-existing design over a completely custom design is far more affordable when it comes to new builds<\/li><li><strong>Build a smaller house<\/strong> &#8211; Reducing the <a href=\"https:\/\/www.zolo.ca\/blog\/how-to-calculate-square-footage\">square footage<\/a> means lowering the number of raw materials and work required for construction, which translates to a lower cost<\/li><li><strong>Choose cheaper finishes <\/strong>&#8211; Standard finishes are more affordable, and you may be able to upgrade in the future<\/li><li><strong>Buy a smaller piece of land<\/strong> &#8211; The cost of land is a key factor in the overall expense of building a home<\/li><li><strong>Postpone non-essential features<\/strong> &#8211; Consider adding features, like built-in shelving, at a later date&nbsp;<\/li><li><strong>DIY what you can <\/strong>&#8211; You can save on overall costs by doing some of the work yourself, such as painting or installing light fixtures<\/li><li><strong>Plan for overages<\/strong> &#8211; Cost overruns and unexpected expenses are common when building a home. Set up a contingency fund of 10% to 15% of your total budget to help manage these costs<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"bottom-line\">Bottom Line<\/h2>\n\n\n\n<p>Building a home can be an exciting journey, but you must consider the costs involved. Remember to get multiple contractor quotes and plan for overages when creating your budget.<\/p>\n\n\n\n<p>Search for your dream piece of land on <a href=\"https:\/\/www.zolo.ca\/\">Zolo.ca<\/a> and let our experienced real estate team help you find the right neighbourhood for your new home.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"cost-to-build-a-house-faq\">Cost to Build a House FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Is it cheaper to buy or build a house?<\/h3>\n\n\n\n<p>In many markets, the upfront cost of buying a home is less than the cost of building a new one. However, it is essential to consider that <a href=\"https:\/\/www.zolo.ca\/blog\/buying-an-older-home\">older homes<\/a> may require thousands of dollars in repairs within the first few years of ownership, thereby increasing the overall cost.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the best time of year to build a house?<\/h3>\n\n\n\n<p>The best time of year to break ground on a home in Canada is in the spring. Starting in the spring means there will be time to ensure your new home is weather-tight before winter arrives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What size house is most affordable?<\/h3>\n\n\n\n<p>Generally, the smaller the home, the lower the cost of construction, as total square footage is a key factor in determining affordability. However, the complexity of the home design, the finishes you choose, and the price of the land will have major impacts on the cost to build a home. Opting for a no-frills home\u2014a basic, functional construction with straightforward design and minimal luxury features\u2014is often the most cost-effective option.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn the true cost to build a house, from construction and material expenses to labour and design choices<\/p>\n","protected":false},"author":112,"featured_media":25275,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"guide":[],"class_list":["post-25274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/25274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/112"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=25274"}],"version-history":[{"count":9,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/25274\/revisions"}],"predecessor-version":[{"id":25287,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/25274\/revisions\/25287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/25275"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=25274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=25274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=25274"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=25274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}