Cost To Build A Custom Home In 2023

Explanation of custom home building

Building your own home can be exciting. It’s an opportunity to explore your creativity and incorporate your wishes into your new home. Successfully building a custom home requires extensive planning, a good understanding of the cost to build a custom home in Toronto, and an experienced team of contractors. 

Importance of understanding the cost of building a custom home

Knowing what to expect cost-wise is an important piece of the puzzle. There are hard and soft construction costs to consider, and many other costs. Quotes for materials are given per square foot. The amount may seem small, but costs add up quickly. It’s important to know the various custom home costs and allow a little extra in your budget for unexpected expenses. 

A brief overview of the factors that affect custom home building costs

How much you will spend building your custom home depends on a variety of factors that include:

  • Location
  • Size
  • Quality of materials

Average Cost of Building a Custom Home in 2025

Current cost trends in the custom home building industry – The cost to build a 2,500 ft.² classic home in Toronto is about $800,000. A modern home of the same size will cost about $865,000, while a luxury home costs approximately $990,000. A larger home of 4,500 ft.² will cost between $1,372,000 and $1,698,000.

Comparison of custom home building cost to existing home prices – Building a house in Toronto will cost more upfront than buying a house, but the mortgage each month will be half of what it typically is for a house you purchase. Custom home building does come with costs that you wouldn’t have if you purchased your home, for example, land purchase and demolishing.

Average cost of building a custom home in 2023
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Factors that contribute to the cost of building a custom home – As we mentioned earlier, there are many different expenses involved in a custom home build. These costs vary year to year ans season to season. A house built five years ago would have cost less than the similar house build today, and some materials will cost more if the supply is lower than the demand that season.

The type of materials you choose will have a major influence on the cost of your project. Luxury finishes cost more and so do high-end fixtures, lights and appliances. 

The size of your custom home will also impact the quantity of materials you need, and therefore, the price.

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Factors affecting custom home building costs

Land costs – Before you can build your dream home, you need to purchase land to build it on. On average, a detached home in Toronto costs about $1,915,000. For comparison, land around the Toronto area will cost about $260,000.

Building materials – The materials you use for your home will be priced per square foot. You don’t have to compromise quality for affordable choices. There are some budget-friendly options that are durable. Before purchasing materials, research your options to determine what the best building materials are for your needs.

custom home building costs in toronto
custom home building costs

Labor costs – The contractors you hire for your home project all need to be paid. You will need to work with a team of professionals with various expertise to complete the project. 

Home design and size – Some house designs are more complex than others and require special expertise to design and build. Expect to pay more for these. The size of your home will also have significant bearing on how much your home build will cost. The larger your home, the more expensive it will be to build.

Location of the home – Locations close to attractions or popular ammenities will cost more than land elsewhere. The complexity of the landscape can also affect the labor costs. If the home will be built on a slope or on hard, rocky soil, you may see the labour cost increase.

The Cost of Construction in Toronto Suburban Areas

There are several factors that affect the costs of construction in Toronto suburban areas. See here some of the estimated costs associated with building a custom home in 2025.

ItemEstimated Cost
Permits and Fees$5,000 – $20,000+
Architectural Plans$5,000 – $30,000+
Landscaping$5,000 – $30,000+
Utilities Installation$10,000 – $50,000+
Funds for unexpected costs (10–20% of total)$50,000 – $200,000+
Labour$50,000 – $300,000+
Land$50,000 – $500,000+
Construction Materials$100,000 – $500,000+
Total$275,000 – $1,650,000+

Consider the items above when budgeting the cost to build a custom home in Ontario.

How Home Design Impacts Construction Costs

In 2025, the design, layout, and style of a custom home play pivotal roles in determining construction costs. Key considerations include:

Homes with intricate designs, multiple corners, and unique shapes require more labour and materials, increasing costs.

Opting for high-end materials like marble countertops or hardwood flooring increases expenses. Conversely, choosing economical alternatives can help manage your budget.

Incorporating elements such as expansive windows or vaulted ceilings adds to both material and labour costs.

Though eco-friendly features may be more costly upfront integrating sustainability measures is more beneficial in the long run, lowering your utility bills month over month

Collaborating with experienced designers and builders like Aria Build is crucial to balance aesthetic desires with budgetary constraints to ensure your custom home can be built cost-effectively.

Costs Vary Depending on Home Size

The size of a home significantly influences construction costs, primarily due to the increased need for materials and labour. Larger homes naturally require more resources, leading to higher overall expenses. Let’s look at what the low, medium, and high average cost per square foot is to build a custom home in 2025.

Size of HomeLow-Cost Average
(Based on $250 per sq ft)
Medium-Cost Average
(Based on $350 per sq ft)
High-Cost Average
(Based on $450 per sq ft)
2,000 sq ft500,000700,000900,000
2,500 sq ft625,000875,0001,125,000
3,000 sq ft750,0001,050,0001,350,000
3,500 sq ft875,0001,225,0001,575,000
4,000 sq ft1,000,0001,400,0001,800,000
4,500 sq ft1,125,0001,575,0002,025,000
5,000 sq ft1,250,0001,750,0002,250,000
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Strategies for managing custom home building costs

Creating a realistic budget – Early in the planning stage, it is important to establish a realistic budget. The first part is creating the budget, the second is sticking to it. Keep in mind that there will be some unexpected surprises along the way, so leave room in your budget for these. 

Choosing a reputable builder – The success of your project is highly influenced by the contractor you hire. Inexperienced builders may make costly mistakes that lead to catastrophic issues later on down the road. Before you decide who to hire, ask for recommendations from family and friends and conduct your own research on reputable builders in your area.

Prioritizing features and finishes – Luxury finishes are nice but costly. A good way to keep your budget lean is to decide what areas of your custom home you want to splurge on and which ones to cut back on. Have a good understanding of what your priorities are and what features you’re unwilling to go without.

Maximizing energy efficiency – This has become a standard for many modern homes. Finding ways to make your new home energy efficient can help you save big in the long run. An added benefit is that you may be able to recoup some of your expensive from the government for building a green home.

Considering long-term maintenance costs – When selecting the type of materials, finishes and appliances for your new home, think about what it will cost to maintain your choices. Some materials require frequent maintenance that can be expensive, while others are low maintenance and will cost less.

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Cost To Build A Custom Home

Conclusion

Recap of key points – Before you begin building your home, it’s important to have a good understanding of the factors that will affect the costs and the different types of costs involved.

Importance of considering all factors when establishing custom home building costs – There are many costs that come up in building a home that you may not think of initially. That’s why it’s important to understand what these costs are and get to accurate estimates so that you can create a realistic budget.

Encouragement to consult with a professional builder for more accurate cost estimates – Finding a professional custom home builder to provide an accurate cost estimate is a huge asset and can make all the difference for your project.

FAQs

What is the most expensive part of home construction?

The most expensive part of house construction is typically the framing and foundation, which includes materials like lumber, steel, and concrete. This aspect typically ranks among the highest costs in the building process due to the extensive materials, specialized labour, and precision required. Other pricey aspects include roofing and interior finishes such as flooring, cabinetry, and countertops. Custom designs, high-end materials, and complex architectural details can also increase costs.

What’s the most cost-effective way to build a custom home?

The most cost-effective way to build a custom home starts with smart planning and disciplined decision-making. First, work with a reputable design-build company like Aria Build who can handle everything from planning and design to construction. It’s essential to plan thoroughly upfront and make decisions based on the long-term purpose of your home.

Ask yourself: is this a temporary residence, a forever home, or a space for my growing family? Once your plans are approved, avoid making changes during construction. Revisions mid-build can cause major delays and lead to unexpected costs. Trust us, a team of license professionals, rather than trying to take on the role of a builder yourself. Our experience will help you avoid costly missteps.

When it comes to materials and finishes, apply the “high-low” rule. Invest in standout pieces or spaces that add value, while using cost-effective options where appropriate. Lastly, by consulting with our interior design team early in the process, we will make sure your design choices are cohesive and aligned with your budget and lifestyle needs.

What shape house is the cheapest to build?

A square or rectangular house is typically the cheapest cost per square foot. These shapes require fewer materials, are easier to construct, and they are simple in design. A two-story square home is even more cost-effective since it reduces the size of the foundation and roof while maximizing interior space.

How long does it take to build a house in Ontario?

On average, a new house construction in Ontario takes 10 to 16 months to complete. The timeline for building a new home varies however depending on the location of the land, the size of the home, the time of year, materials chosen, permits needed, inspections, weather conditions, as well as other factors can affect scheduling.

What is the fastest way to build a custom home?

The fastest way to build a custom home starts from the beginning with proper planning. Having your property already purchased gives you a head start, allowing the design and permitting process to move forward without delay. When meeting with us, come prepared with ideas, inspiration, and a clear understanding of why you’re building. This helps our builders make informed decisions and work more efficiently.

By partnering with Aria Build, our team of architects, designers, and builders know how to communicate well and have a proven track record of staying on schedule. Our coordination and ability to manage timelines minimizes mistakes and avoids costly delays. Once you’ve made decisions on layout, finishes, and materials, be sure to stick with them! Changing your mind mid-build can stall progress and create setbacks. Also remember to be responsive and involved throughout the process. Timely decisions and clear communication keep the project moving and ensure your custom home is built as quickly and as smoothly as possible.

What Our Clients Say

My husband and I chose Aria Build to design and build our custom home, and we’re so glad we did. Behzad and his team are truly wonderful, professional, thoughtful, and genuinely committed to building high-quality homes. From our first meeting, we felt confident that we had chosen the right custom home builder in Toronto.Throughout the entire process, our project manager was incredibly responsive and helpful. Whether we had questions or needed updates, someone was always there to walk us through it. Building a custom home in the Greater Toronto Area can feel overwhelming, but Aria Build made it a smooth and enjoyable experience.Now that we’re living in our new home, we couldn’t be happier. The attention to detail and craftsmanship is outstanding, It really shows how much pride they take in their work. Even after we moved in, the few small warranty items we had were handled quickly and professionally.If you’re looking for a trustworthy, family-run home builder in Toronto or the GTA, I highly recommend Aria Build. And if we ever build again, I wouldn’t go with anyone else.
Rose
15:07 07 Apr 25
Best business decision ever.Less than a year ago, my wife and I purchased a beautiful piece of property just outside Toronto to build our forever home. Like many homeowners beginning the custom home building journey, we spent a lot of time researching the best custom home builders in Toronto and the GTA. After speaking with several top-rated companies, one name stood out immediately, Aria Build.We were initially unsure if a smaller 1700 square foot home like ours would get the same attention as the larger luxury homes Aria Build is known for. But after just one conversation with Behzad, all of our concerns were put to rest. They treated our project with the same care, passion, and professionalism that you would expect from a truly experienced, family-owned custom home builder.Choosing Aria Build was hands down the best decision we could have made.Building a custom home in Toronto can be overwhelming, but working with a trustworthy and experienced builder makes all the difference. Behzad and his team were incredible every step of the way. They were responsive, detail-oriented, and genuinely cared about getting everything just right, from the foundation to the finishing touches. Their dedication to quality craftsmanship and personalized service exceeded all our expectations.Now, as we prepare to move into our lakefront dream home, we’re filled with gratitude. This isn’t just a house, it’s our future, and it was built with love and expertise by one of the best home builders in Toronto.If you’re looking for a reputable custom home builder in the GTA, someone who combines luxury home experience with family values and personal attention, we highly recommend Aria Build. Thank you Behzad and his family, for helping us turn our vision into reality.
Kevin Wei
14:59 07 Apr 25
I had the pleasure of working with Aria Build, for the renovation and addition to my home, and I couldn’t be happier with the results. Their team was exceptional—highly professional, detail-oriented, and committed to delivering top-quality work. The project was completed on time and within budget, which made the entire experience stress-free. From start to finish, the process was seamless, and they exceeded my expectations in every way. If you're looking for a reliable and skilled team for your home project, I highly recommend Aria Build!
Jaineet Banwait
13:07 27 Mar 25
I've had the pleasure of working with Aria Build, and I can confidently say that they are a true professional in their field. Their attention to detail is exceptional, and they approach every project with precision and dedication. Their craftsmanship is outstanding, and they ensure that every aspect of the work is executed flawlessly. If you're looking for someone who values quality and delivers top-tier results, I highly recommend Aria Build.
Hossein Sepand
03:21 27 Mar 25
Transformative Renovation Services You Can Trust. Our home renovation project was a massive success, all thanks to Aria Build. Their expertise in high-end renovations and their attention to detail were second to none. The team ensured that every stage of the process was stress-free and the results were beyond what we had imagined. For anyone looking for luxury home renovation services in Toronto, Aria Build is a top-notch choice that guarantees outstanding outcomes.
SJ Aram
00:21 27 Mar 25
Trusted Family-Owned Business Aria Build is a remarkable home builder with over a decade of experience in constructing and remodeling luxury homes across Toronto, North York, and the GTA. Their commitment to creating breathtaking custom homes and delivering unparalleled customer service is truly exceptional. We were thoroughly impressed by their innovative designs and flawless execution. If you’re in search of trusted custom home builders in Toronto, look no further than Aria Build.
Lush Designs
00:13 27 Mar 25
Working with Aria Build was an incredible experience from start to finish. My wife and I recently bought our forever home in the GTA, and while the property had great bones, it needed a full custom renovation 6 bedrooms, 7 bathrooms, and pretty much everything in between. The layout and finishes were really dated, and we wanted something more modern, functional, and high-end.A friend of ours recommended Behzad and the team at Aria Build, and after meeting him just once, we knew we didn’t need to look any further. He understood exactly what we wanted and made us feel confident about taking on such a major project.Throughout the entire build, Behzad was hands-on, responsive, and super easy to work with. Of course, no renovation comes without its challenges, but what really stood out was how quickly he addressed any issues and kept things moving. His team was professional, respectful, and clearly took pride in their work.The end result? A fully customized home that feels like us in every way modern, clean, and beautifully built. The attention to detail was next-level, and we’ve already had people asking who did the work.If you’re planning a custom home build in Toronto or the GTA, I can’t recommend Aria Build and Behzad enough. Honest, reliable, and truly passionate about what they do.
Jamshid Davlat
01:29 26 Mar 25
When we found out we were expecting twins, we knew our cozy starter home wasn’t going to cut it anymore. Between the lack of space and the layout that just didn’t work for a growing family, we decided it was time to build a custom home that could truly be our long-term home.We had no idea where to start, but after being referred to Behzad and the team at Aria Build, everything just clicked. From the very first meeting, Behzad really took the time to understand what we needed not just in terms of square footage, but in how we live. He asked thoughtful questions, offered great suggestions, and never once made us feel rushed or pushed into decisions.Throughout the process, the Aria Build team was organized, professional, and incredibly detail-oriented. Behzad was always available to answer questions or walk us through the next step. As stressful as building a custom home can be especially while preparing for two babies we always felt like we were in good hands.The finished home is more than we ever imagined. The open-concept living space is perfect for watching the kids while cooking, we have more than enough bedrooms and bathrooms to grow into, and every inch of the house reflects the quality and care that went into the build. It’s functional, beautiful, and truly feels like home.If you’re looking to build a custom home in Toronto or the GTA, especially as your family grows, I can't express enough how grateful I am for Behzad and Aria Build. Highly recommend!!!
Trent Holliday
00:35 26 Mar 25
We purchased our first home in Toronto and was searching for a custom home builder to build our dream home , after interviewing numerous builders we came across aria build in our neighbourhood in Leaside. Behzad was responsive and had lots of knowledge about luxury homes , he guided us with his design team and we were able to get our dream home . He surpassed our expectations, we are so happy with our new home in Toronto. Thank you aria build team
noor abdul hussain
18:37 15 Oct 24
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