How Much Does It Cost to Build a House in Ontario?
Updated October 20, 2026
Direct Answer: A standard single-family house in Ontario costs about $160 to $230 per square foot to build in Ottawa and up to $275 in Toronto, before land, on 2026 Altus Group figures. HST, municipal charges and soft costs come on top. On your own lot, HST relief depends on construction starting by March 31, 2027.
TL;DR
Published 2026 figures put a standard house at $160 to $230 per square foot in Ottawa and up to $275 in Toronto, before land. Custom-built homes run $500 to $1,130.
Hire a builder on land you own, and the HST relief of up to $130,000 depends on construction starting between April 1, 2026 and March 31, 2027.
A per square foot figure leaves out land, soft costs, permits, development charges, HST, servicing, landscaping, financing and contingency.
Hamilton's City development charge on a new detached house runs $44,415 to $102,451. The City has committed to waiving it through March 31, 2029, pending a funding agreement.
A licensed builder supplying all labour and materials makes it a contract home, with Tarion warranties up to $400,000.
Price the house, then the lot and the fees, and time the construction start for the HST window.
How much does it cost to build a house in Ontario per square foot?
In short: a standard single-family house in Ontario's published markets tops out near $275 per square foot before land. A custom home costs more, and taxes and municipal charges come on top.
So, how much does it cost to build a house in Ontario? Published 2026 figures from the Altus Group cost guide, as reported by NerdWallet Canada, cover a standard single-family house with an unfinished basement [1]. They run $160 to $230 per square foot in Ottawa and up to $275 in Toronto. Land is extra.
Market | Published cost per square foot | What it covers |
|---|---|---|
Canada's major cities | $155 to $315 | Single-family house, unfinished basement, no land |
Ottawa | $160 to $230 | Same |
Toronto | Up to $275 | Same |
Custom-built, Greater Toronto Area | $520 to $1,130 | Custom single-family, no land |
Custom-built, Ottawa | $500 to $1,000 | Same |
Standard rows: Altus Group 2026, via NerdWallet Canada [1]. Custom rows: Altus Group, via Zolo, December 2025 [17].
That table prices hard costs, meaning the labour and materials that go into the structure. Soft costs such as design, permits and taxes sit outside it. A custom home, with its own drawings, finished spaces and chosen materials, runs well above the standard rows [17].
There is no official Hamilton number. Statistics Canada tracks what contractors charge in 15 metro areas, and only three are in Ontario: Ottawa, Toronto and London [2]. Its latest reading shows residential construction costs up 2.3% from a year earlier across those 15 areas. Toronto was down 0.8% in the second quarter of 2026 [2].
Quick math: 2,500 square feet at Ottawa's published range is $400,000 to $575,000. That is the house alone. Our custom home builds in Hamilton start with a site visit and a written estimate.
HST on a new build: the $130,000 relief and the start date that decides it
In short: if you hire a builder to put a house on land you own, the HST relief depends on construction starting by March 31, 2027.
HST is often the largest line missing from the cost of building a house in Ontario, and the 2026 relief can return up to $130,000 of it. On a house built on your own land, eligibility turns on when construction starts and finishes, not on when you sign a contract [3].
The Canada Revenue Agency treats you as an owner-builder if you "hired someone else to construct" your home [3]. That route has its own dates.
Date test | Built on land you own | Bought from a builder |
|---|---|---|
Agreement signed | Not the test | April 1, 2026 to March 31, 2027 |
Construction begins | April 1, 2026 to March 31, 2027 | By December 31, 2028 |
Substantially completed | By December 31, 2029 | By December 31, 2031 |
The contract-date rule you may have read about belongs to the right-hand column. Sign in February 2027, break ground in May, and an owner-built home misses the window. The agency's own example treats excavation as the start [3].
Home value | HST relief |
|---|---|
$500,000 | $65,000 |
$700,000 | $91,000 |
$1 million | $130,000 |
$1.2 million | $130,000 |
$1.85 million and above | $24,000 |
Those figures come from the Government of Ontario [4]. Between $1.5 million and $1.85 million, the relief steps down [5]. It arrives in two parts: up to $80,000 through the Canada Revenue Agency and up to $50,000 from Ontario, with no separate Ontario application [5].
The home must be your primary residence or a relation's, and one of you must be the first to live in it. It cannot be rented out, and its fair market value at completion must be under $1,850,000 [3]. Confirm your own case with the agency or your accountant.
Drawings, permits and site preparation decide when the excavator can arrive, and we coordinate all three on our custom builds.
What the cost per square foot to build a house in Ontario leaves out
In short: a per square foot figure prices the structure. Land, servicing, soft costs, financing, taxes and municipal charges sit on top.
A cost per square foot to build a house in Ontario covers the labour and materials of the house itself. CMHC's 2025 Ontario construction estimates, priced in Toronto for secondary suites and small multi-unit buildings, list what their per square foot figures leave out [6]. Use that list to check any estimate for a custom home.
Cost | In the per square foot figure? | Notes |
|---|---|---|
Labour, materials, contractor overhead and profit | Included | CMHC assumes 15% overhead and profit |
Land | Excluded | Bought separately |
Soft costs | Excluded | The fees around the build, such as design and approvals |
Building permit and development charges | Excluded | Hamilton figures below |
HST | Excluded | Relief rules above |
Demolition and site development | Excluded | Common on infill lots |
Site servicing | Excluded | Water, sewer, electrical and natural gas connections |
Landscaping | Excluded | Hard and soft |
Borrowing costs and legal fees | Excluded | Construction financing and closing |
Contingency | Excluded | CMHC advises 5% to 10% of hard costs |
The contingency line is easy to underrate. On $500,000 of hard costs, 5% to 10% is $25,000 to $50,000.
Most owners finance a build with a construction mortgage that pays out in stages, each released after an inspector confirms progress. Lenders may ask for a down payment of at least 20% of the total build cost [1].
Taxes and government charges add up as well. In March 2026, the head of the Canadian Home Builders' Association said the total tax burden on new housing "can make up to 30% of the price of a new home in some communities" [7].
Before comparing quotes, ask each builder which of these rows their number covers.
Development charges and building permit fees in Hamilton
In short: Hamilton has committed to waive City development charges on new homes through March 31, 2029, once a funding agreement is signed. School board charges and permit fees still apply.
Development charges are the fees a city collects on new homes to pay for roads, pipes and other growth. In Hamilton, the City charge on a new detached house depends on where the lot sits [8].
Charge on a single or semi-detached house | June 1, 2026 to May 31, 2027 |
|---|---|
City charge, Rural Area | $44,415 |
City charge, Urban Area B, separated sewer | $81,302 |
City charge, Urban Area A, combined sewer | $89,729 |
City charge, Urban Area A, separated sewer | $102,451 |
Dundas and Waterdown special area charge | $1,931 extra |
Education charges, all areas | $3,579 |
On August 26, 2026, Hamilton committed to eliminating development charges on all residential development from March 30, 2026 to March 31, 2029 [9]. The saving is up to $100,442 per home. The funding behind it is conditional on further agreements [9]. The City says refunds go back to March 30, 2026 once its agreement is signed [10]. Education charges are set by the school boards and sit outside City policy [8].
On a house you will live in, City charges are paid at occupancy and education charges before the permit is issued [8]. If an older house came down under a demolition permit, a credit against both is available for up to five years [8].
The building permit itself costs far less. Under the City's 2025 fee by-law, a new detached house is $18.32 per square metre of floor area [11]. For 2,500 square feet, about 232 square metres, that is roughly $4,255, plus $168 each for new water and sewer services [11]. The permit is where drawings are checked against the Ontario Building Code, and we coordinate it on every custom build.
What moves the average cost to build a house in Ontario
In short: size, shape, finishes and the lot set most of the price. Market conditions move it from year to year.
The average cost to build a house in Ontario covers a wide spread, and most of that spread comes from choices made at the design stage.
Driver | Raises the cost | Keeps it in check |
|---|---|---|
Size | A small home, since kitchens, bathrooms and mechanical systems do not shrink with it | Floor area sized to how you live |
Shape | Corners, bump-outs and complex rooflines | A simple footprint and roof |
Finishes | Custom cabinetry, stone and large windows | Spending where you use the space most |
The lot | Slopes, rock, demolition, or a rural lot that needs a well and septic system | A serviced, level lot |
CMHC's Ontario estimates show the size effect. A 634 sq ft suite prices at $396 to $495 per square foot, while a 1,017 sq ft suite prices at $337 to $422 [6].
Market conditions move too. Altus Group's 2026 commentary reports plentiful labour in Toronto, with largely flat labour costs. It says concrete formwork, earthworks, finishing trades and windows "have seen the sharpest decreases" [12]. For Ottawa it notes "ongoing tariff pressure on lumber and steel" [12].
Every new house is built to the 2024 Ontario Building Code, with amendments in effect since January 1, 2025 [13], so code work belongs in the base price.
You can see how finish choices play out in our past custom homes.
Tarion warranty and builder licensing on a contract build
In short: hire a licensed builder to supply all the labour and materials on your lot, and Tarion's new home warranty applies.
When you own the land and a builder supplies all the labour and materials, Tarion calls the result a contract home. It carries one, two and seven year warranties up to $400,000 from the day you take possession, plus up to $40,000 if the builder stops work [14].
How the house gets built | HST label | Tarion label | Statutory warranty |
|---|---|---|---|
You hire a builder for all labour and materials | Owner-built | Contract home | Yes |
You act as your own general contractor | Owner-built | Owner-built | No |
Supplying the foundation, framing or electrical work yourself can also cost you the warranty [14].
A builder of contract or custom homes on an owner's land must be licensed by the Home Construction Regulatory Authority. Building without a licence is illegal [15]. Check the Ontario Builder Directory before you sign. Tarion's one-time enrolment fee, averaging $1,790 per home, is charged to the builder [16].
How to get a firm number for your lot
In short: a firm number comes from your lot, your plans and a written estimate, in that order.
Published ranges tell you roughly how much to build a house in Ontario. A firm number for your own lot takes five steps.
Gather the lot details. Have the survey, address and any zoning notes ready.
Bring the builder in early. Involving the builder before plans are final keeps the design, scope and budget lined up. We work with your architect or designer, or can connect you with one.
Ask the City for its figure. Hamilton provides an informational development charge estimate on request [8].
Get a written estimate after a site visit. Ours sets out materials, timelines and costs. It stays valid for 30 days and is reconfirmed if your start date moves later.
Check the start date. If you are counting on the HST relief, map the schedule against the March 31, 2027 construction start.
Ready to price your lot? Book a consultation with Mark.
Frequently asked questions
In short: quick answers on per square foot costs, custom homes and Tarion coverage.
How much is it to build a house in Ontario?
Published 2026 Altus Group figures, as reported by NerdWallet Canada, cover a standard single-family house before land. They run $160 to $230 per square foot in Ottawa and up to $275 in Toronto. HST, municipal charges and soft costs come on top.
How much does a custom home cost in Ontario?
Published Altus Group figures reported by Zolo put a custom-built single-family home at $500 to $1,000 per square foot in Ottawa, before land. In the Greater Toronto Area, the range is $520 to $1,130. The reliable figure for your home is a written estimate after a site visit, covering materials, timelines and costs.
What is the cost to build a 2000 sq ft house in Ontario?
On Altus Group 2026 figures reported by NerdWallet Canada, a 2,000 square foot standard house costs $320,000 to $460,000 to build in Ottawa. In Toronto it costs up to $550,000. That is the house alone, before land, taxes and fees.
What is the cost to build a 3000 sq ft house in Ontario?
On the same figures, a 3,000 square foot standard house costs $480,000 to $690,000 in Ottawa and up to $825,000 in Toronto, before land, taxes and fees.
Does Tarion cover a house a builder builds on my land?
Yes, when a licensed builder supplies all the labour and materials. Tarion calls it a contract home, with one, two and seven year warranties up to $400,000. A house where you act as your own general contractor has no statutory warranty.
Sources
NerdWallet Canada. How Much Does It Cost to Build a House in Canada? (citing the Altus Group 2026 Canadian Cost Guide). https://www.nerdwallet.com/ca/p/article/mortgages/how-much-does-it-cost-to-build-a-house
Statistics Canada. The Daily: Building construction price indexes, second quarter 2026. July 24, 2026. https://www150.statcan.gc.ca/n1/daily-quotidien/260724/dq260724b-eng.htm
Canada Revenue Agency. Ontario Enhanced New Housing Rebate: Who can apply. Modified July 23, 2026. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/housing-rebates/ontario-enhanced-new-housing/who-can-apply.html
Government of Ontario. Our plan: more homes for more people at a price they can afford. Updated July 22, 2026. https://www.ontario.ca/page/building-more-homes
Government of Ontario. The Ontario New Home Affordability Payment. Updated September 17, 2026. https://www.ontario.ca/page/ontario-new-home-affordability-payment
CMHC. Housing Design Catalogue Construction Cost Estimate Summary, Ontario. Q1 2025 estimates. https://assets.cmhc-schl.gc.ca/sites/housing%20catalog/resources/hdc-construction-cost-estimate--summary-ontario-en.pdf
Canadian Home Builders' Association. CHBA applauds federal-Ontario plan to support municipal development charge reductions. March 30, 2026. https://www.chba.ca/2026/03/30/chba-applauds-federal-ontario-plan-to-support-municipal-development-charge-reductions/
City of Hamilton. Development Charges Pamphlet, rates effective June 1, 2026 through May 31, 2027. https://www.hamilton.ca/sites/default/files/2026-07/development-charges-pamphlet-june1-2026-May31-2027.pdf
Government of Canada. Canada and Ontario making homes more affordable in Hamilton. August 26, 2026. https://www.canada.ca/en/housing-infrastructure-communities/news/2026/08/canada-and-ontario-making-homes-more-affordable-in-hamilton.html
City of Hamilton. Development Charge Reduction Program application update. August 26, 2026. https://www.hamilton.ca/sites/default/files/2026-08/comms-update-development-charge-reduction-program-DCRP-Application-Update-City%20Wide.pdf
City of Hamilton. By-law No. 25-008, building permit fees. Passed January 22, 2025. https://hamilton.ca/sites/default/files/2025-01/25-008.pdf
Altus Group. Cautious in 2026, optimistic for 2027: Cost Guide insights. April 23, 2026. https://www.altusgroup.com/insights/caution-in-2026-optimistic-for-2027-cost-guide-insights/
Government of Ontario. Building Code updates. Updated April 1, 2026. https://www.ontario.ca/page/building-code-updates
Tarion. Contract Homes. https://www.tarion.com/node/66068
Home Construction Regulatory Authority. Licensing. https://www.hcraontario.ca/licensing-compliance/licensing/
Tarion. Tarion Implementing Updated Enrolment Fee Schedule (effective September 1, 2025). https://www.tarion.com/node/66132
Zolo. How Much Does it Cost to Build a House? Jenn Neilson, December 30, 2025 (citing Altus Group). https://www.zolo.ca/blog/how-much-does-it-cost-to-build-a-house
