Many Toronto homeowners dream of a home renovation project to transform their current house into their ideal home. With the city's rich history and diverse architecture, older homes in Toronto offer unique charm and potential. However, renovating these older properties to align with modern desires often requires substantial changes. Whether it's opening up space, updating outdated features, or adding modern amenities, home renovations can help create a home that fits your vision. But before diving into a renovation project, understanding the costs involved is crucial. This guide will help you learn more about home renovation costs in Toronto and what to consider when planning your project.

Toronto’s housing market is seeing more and more renovations, driven by several factors:

Aging Homes: Many older homes in Toronto need updates to meet modern living standards.
Modern Features: Homeowners want newer features and better use of space.
Multi-generational Living: As our parents age, and our kids get older, there is a push towards multi-generational home ownership.

Knowing the costs of a home renovation is crucial for several reasons:

Preventing Project Creep: Understanding costs helps you create a realistic budget for your renovation and prevent things from spiraling once you’re in it.
Planning Your Project: Knowing the costs helps you decide which projects to prioritize based on what you need and can afford.
Maximizing Return on Investment: If you plan to sell your home, it's important to know the potential increase in your property's value from renovations.

How Much Does It Cost to Renovate a Home in Toronto?

The cost of renovating a home in Toronto can vary greatly depending on a number of factors, including the square footage of your home, the complexity of the build, and the existing condition of the structure.

Different Scales of Projects and Rough Costs

Small Renovations: Simple updates, like painting or installing new light fixtures, can cost anywhere from a few thousand dollars up to $25,000.
Major Renovations: Bigger projects, such as kitchen or bathroom renovations, can range from $30,000 to over $100,000.
Full house renovations: When simple home improvements won't do, a full gut of the existing home, including structural changes and high-end finishes, can easily cost $800,000 or more.
Per Square Foot Cost: The average cost for a whole-home renovation in Toronto can range from $400 to $550 per square foot. This can change based on the project's size, complexity, and scope. The caveat here is that using a per-square-foot metric produces a crude projection but can be useful as a first step in determining whether or not a whole home renovation is within your budget. Remember to include the basement as this area receives as much attention as the rest of the house.

Additional factors that can affect the cost of a home renovation:

Project scope: The nitty gritty details of a reno project are ultimately what drive the cost of a project. Are floors being replaced, refinished or just patched? Are there major structural changes to be done? Moving load bearing walls, changing stair openings and modifying roofs can be very costly. No two renovations are the same and detailing out the exact scope of work is critical to determining the ultimate cost.
Square footage: The literal size of a home can have a direct impact on the overall cost. For instance, a full house renovation to a 5000 ft2 home will clearly cost more than the same renovation would to a 2000 ft2 home.
Quality of Materials: High-quality finishes and more durable materials will increase costs.
Permits and Regulations: Getting permits and following local rules and best practices simply costs more than ignoring these rules and cutting corners. You literally get what you pay for.

How to Get an Accurate Estimate for Your Renovation

To truly get an understanding of what a renovation might cost, it’s best to work with a company like Lighthaus Built that offers preconstruction services. We can help you better understand the renovation process by creating a detailed plan and working with a design team to understand what you need and what you can afford. With our experience and strong reputation in Toronto, we will create a dedicated team to manage every part of the renovation. These include:

Detailed Cost Estimates: Understanding what you can expect to spend.
Project Management: Keeping everything on track and on time.
Coordinating with Experts: Working with trusted tradespeople, architects, and designers.

By working with professionals, you can make sure that every step of your renovation is carefully planned and executed to match your vision and budget.

Tips for Managing Your Renovation Budget

To keep your renovation on budget, consider these tips:

Hire a Company that Performs Preconstruction Planning: to truly understand what a renovation project will cost requires fully understanding the scope of work. A company like Lighthaus Built will spend the time to meet with you, the design team and their trade partners to work through all of the decisions that must be made and assign costs for each line item.
Create a Realistic Budget: We always say that the scope of work drives the cost of the project. Once you have a scope of work that you are happy with you need to look at those projected costs and decide what you can and cannot afford. It’s far cheaper to remove items from a project’s scope now than while during construction.
Include a Contingency Fund: Plan for an additional 10-15% above the starting price for unexpected expenses.

Renovations and Resale Value

Whether or not to consider the resale value of your home post-reno is not a clear cut decision. Every owners’ financial situation is unique and must be considered. But in our experience, owners who take on a full home renovation are doing so for their own benefit as they plan to stay in the home for 15-20+ years. With a timeline like that it completely makes sense to focus on very personal design details.

However, if your goal is to renovate and sell immediately, then overly personalized renovations or high-end finishes may not offer a high return on investment. In this case, it's crucial to balance your personal preferences with what will appeal to future buyers.

Making Your Dream Home a Reality

Renovating your home in Toronto can be a rewarding experience, transforming your space into the home of your dreams. By understanding the costs, planning carefully, and working with the right professionals, you can ensure a successful renovation that meets your needs and fits your budget.

Meet the Author

Dave Cook is co-owner of Lighthaus Built and has spent 17 years working in single-family construction in Toronto. Through the years, he has worked as a carpenter, site supervisor, and project manager for more than 60+ major, high-end renovations and custom homes.

As an HCRA-licensed builder, he and his company (Lighthaus Built) are well-versed in constructing high-quality homes and take pride in what they do.

On a personal level, Dave is very active in several sports - most notably, distance running, road cycling, and tennis. He bakes bread (for personal consumption) and no, this was not a Covid thing. He grew up eating homemade bread and has made my own for the past 20 years. He has been married for 20 years and has two teenage children and a dog.

How Much Does a Full House Renovation Cost in Toronto?