Are you wondering how much it costs to build a house in Canada? You’re not alone. With housing inventory still below historical averages across cities, suburbs, and rural areas, many Canadians are exploring whether building a home is a more viable option than purchasing a resale property.

Building from scratch offers significant advantages, like the ability to design your home exactly how you want it. You control the layout, features, and finishings, room by room, making it truly your own. Plus, there’s the satisfaction of watching your dream home take shape.

But what does it actually cost? Let’s break it down.

Costs of Building a House in Canada

Building a house can be as rewarding as it is challenging. Over the past few years, rising labour and material costs have made home construction more expensive. Supply chain disruptions and labour shortages have also played a role.

On average, building a single-family home in Canada costs between $100 and $300 per square foot, depending on factors like location and design.

Cost per Square Foot in Major Canadian Cities

Here’s what you can expect for detached homes with unfinished basements in 2023:

• Vancouver, BC: $185 to $315

• Calgary, AB: $150 to $240

• Edmonton, AB: $150 to $240

• Winnipeg, MB: $145 to $230

• Toronto, ON: $205 to $280

• Ottawa, ON: $140 to $225

• Montreal, QC: $140 to $205

• Halifax, NS: $105 to $165

• St. John’s, NL: $130 to $165

These figures vary based on the type of home and the complexity of the build.

Financing a Home Build

If you’re considering building, specialized financing options are available, including:

1. Completion Mortgage: Funds are transferred after the home is finished.

2. Progress-Draw Mortgage: Funds are released in stages as the build progresses.

Vacant land purchases often require larger down payments (25–30%) and higher interest rates, so it’s important to consult a mortgage broker to understand your options.

How Long Does It Take to Build a Home?

Assuming no delays, building a house typically takes 10 to 16 months. This timeline doesn’t include preparatory work like clearing the land or resolving potential permitting issues.

Tips to Save Money on Building Costs

Building a house is a significant investment, but here are some strategies to manage costs:

1. Choose Affordable Locations
   Land farther from urban centres is usually less expensive, though utility connections and environmental factors should be considered.

2. Opt for Pre-Designed Plans
   Using pre-existing designs can significantly lower costs compared to fully custom layouts.

3. Compare Contractor Quotes
   Obtain multiple quotes and verify what’s included to avoid hidden costs. Prioritize contractors with strong reviews and relevant experience.

4. DIY Labour
   Tackle smaller jobs yourself, like painting or installing fixtures, to save on labour costs.

5. Reuse and Recycle
   Explore salvage yards or organizations like Habitat for Humanity ReStores for affordable materials with character.

6. Plan for Resale Value
   Choose timeless styles that balance affordability with market appeal.

Exploring Alternatives

Not ready to take on a custom build? Consider:

• Subdivision New Builds: Ready-to-go homes with customizable upgrades.

• Tiny or Small Homes: Smaller footprints, often under 1,000 square feet, can be built for under $200,000.

Make Your Dream Home a Reality

Building a house in Canada is an exciting opportunity, but it requires careful planning and budgeting. Whether you’re looking for land or need help navigating financing options, I’m here to guide you through the process.

Curious about what’s possible? Reach out today to explore your options and take the first step toward your dream home.