How much does it cost to build a new house in Toronto? Will I be able to afford it? Whether buying a home or building it from scratch, our house is one of the largest investments we’ll ever make.
Determining how much we are willing to spend for it takes a lot of consideration and decision-making.
A realistic cost expectation in budgeting for home construction will help us understand the ins and outs of the construction process. It also gives us an outlook of the accurate cost estimates, thus, gives us the right amount of time to prepare for our finances.
There are three things to consider in estimating the budget: construction costs, taxes, and other fees. The construction costs are comprised of the materials, labor, and equipment costs; taxes are government-mandated payments; and the other costs include permits, overhead costs, and contingencies.
In Toronto, it has been a common practice for individuals and families to build their custom luxury homes instead of buying one. When constructing our own homes, we can customize the designs based on our preferences and needs. Estimating the costs of the construction of a house in Toronto can be tricky. However, if we understand all the components that we need to consider, we can come up with a precise (if not accurate) amount.
First things first, construction costs will differ based on the design of our homes. Fancier and more luxurious homes are more costly than homes with simpler designs
What are the factors to be considered in estimating construction costs for our homes?
In Toronto, the location for our proposed homes is an important factor to be considered in costing. We have to seek a lot where we can build our homes. In most cases, homeowners tend to purchase detached houses based on their land value. This could mean that on top of buying a detached house, tearing or demolishing it down is another factor to be considered in the cost estimation. There are detached houses that are priced below $700, 000.00 in Toronto. Demolition costs range from $20 to $50 per square foot, therefore we could spend about $15, 000 to $20, 000.
Next is the cost for the construction stage. We will now consider all the aspects that are involved in the physical construction of our homes. These include the following:
- Foundation – We can always retain the foundation of the detached homes from the lot that we purchased- provided that the existing foundation is in good condition and the floor plan for our own homes coincides with the layout of the foundation. However, if we choose to demolish the existing foundation, we consider the excavation cost, reinforcement for the foundations, concreting, and backfilling.
- Structural Elements – These are the columns, beams, floorings and slabs, roof structure, walls, and stairs.
- Exterior Finishes – These include bricks and claddings, paintworks, roofing and gutters, windows and doors, grills, etc.
- Interior Finishes – These comprise paintworks, tiles and carpets, cornice moldings, baseboards, cabinets, drywall, and partition walls.
- MEPFS – Consist of works for mechanical, electrical, plumbing, and fire protection systems.
- HVAC – This is for the heating, ventilation, and air conditioning.
- Site development – Includes garage, curbs, landscaping, drainage, and fence.
- The cost for these six components already covers the material cost, labor cost, and equipment costs. Other costs included in these are building permits and design fees.
COST OF CONSTRUCTION OF HOUSE PER SQUARE FOOT OF FLOOR AREA
Typically, construction costs are computed based on the floor area of the houses. In Toronto, the costs are based on floor area and range from $155 to $260 per square foot. The total cost of home construction (Tc) is given as the price per square foot (p) multiplied by the total floor area of the house (A).
Tc = p x A
For example, for a typical custom home that consists of three bedrooms, two bathrooms, living room, kitchen, dining room, family room, and other important home components, the floor area ranges from 1500 sq. ft. to 2000 sq. ft. If we consider 2000 sq. ft. as our basis, we get:
Tc = p x A = $155/sq.ft. x 2000 sq.ft. = $310, 000 (minimum)
Tc = p x A = $260/sq.ft. x 2000 sq.ft. = $520, 000 (maximum)
For typical and simple 2000 sq. ft. homes, the cost ranges from $310, 000 to $520, 000.
If we are considering building for a luxurious custom home, the price per square foot typically ranges from $350 to $450 per square foot.
Of course, these costs depend on the design and size of our homes. If we opt for smaller and simpler custom homes, the cost would be lesser. However, if we choose luxurious custom homes, the cost would be much higher.
The good news is, we can always hire a designer that can assist us in selecting the best designs for our homes that will fit our budget.
SINGLE-STORY OR TWO-STORY?
Based on experiences from home builders, single-story houses usually cost more than two-story houses. To put it simply, a single-story house with a 2000 square-foot area costs more than a two-story house with the same floor area.
The single-story and two-story homes have the same foundation, same roofing, and some structural elements. Two-story homes also require a smaller land area compared to bungalow houses.
This means we can save a significant amount of money if we choose multi-story homes.
Building our own homes allows us to customize the design of our homes to fit our needs and wants. Perhaps we want to have a garden, a swimming pool, or a huge backyard. We can do these if we choose to build our homes rather than buy one.
Although, customizing our homes does not only mean beautification of our homes. We can also customize our houses based on our needs. Enlarging our windows for better ventilation, or adding more windows for natural lighting inside are some reasons.
Always seek the services of the right professionals for assistance in making a quotation. Architects and designers have the adequate knowledge to create a more accurate computation. They can also provide options for the designs that will fit your budget.
It is undeniable that there is a connection between homes and their owners. Watching and fully experiencing the construction of our homes from the inception of ideas to finishing works, while no totally easy, will give us satisfaction.