Garden Suite Cost in Toronto has become a key topic for homeowners looking to maximize their property’s potential in 2025. With Toronto’s housing market still competitive and prices for traditional homes soaring, many residents are turning to garden suites as a smart, flexible solution. These self-contained backyard units not only offer extra living space for family members but also provide a valuable source of rental income. Understanding the true cost of building a garden suite—from permits to construction—can help you plan effectively and avoid unexpected expenses.
In 2025, the cost of a garden suite in Toronto is influenced by factors like design complexity, material quality, labour rates, and local bylaws. While the investment can be substantial, the long-term financial benefits, property value boost, and lifestyle advantages often outweigh the upfront expense. Whether you’re aiming for a modest modular build or a custom high-end suite, knowing the detailed breakdown of costs is the first step toward making an informed decision. This guide offers a clear, data-backed look at what you can expect to spend and how to budget smartly.
Why Choose Milan Builders for Your Garden Suite or laneway?
When comparing cost per sq. ft., it’s clear that larger and multi-level designs offer more value and flexibility. Milan Builders provides transparent pricing, high-quality construction, and designs tailored to both lifestyle and investment needs. Whether you’re looking for affordability, maximum living space, or rental income potential, our expert team ensures your Garden Suite is built with durability, functionality, and modern design in mind. Below we review our competitive services and prices together then you can make the best decision.
Two-Story Garden Suite (No Basement) – $216 per sq. ft.
The two-story unit without a basement is one of the most cost-efficient options, priced at $216 per sq. ft. With a total area of 1,200 sq. ft., it provides ample living space while keeping construction costs relatively low compared to other models. This design is ideal for homeowners who want a balance between space and affordability. Although it lacks a basement, the vertical layout maximizes usable area, making it perfect for rental income or extended family living.
Two-Level Garden Suite with Basement – $230 per sq. ft.
For those who want more functionality, the two-level unit with a finished basement comes in at $230 per sq. ft. With a total of 1,200 sq. ft. of living space, the basement adds valuable square footage for storage, a home office, or even an additional bedroom. While slightly more expensive than the no-basement design, the added versatility and comfort can justify the extra cost, especially if you’re planning to use the space long-term or attract higher rental income.
Three-Level Garden Suite with Basement – $249 per sq. ft.
At $249 per sq. ft., this three-level unit is one of the more premium options. With a total of 1,800 sq. ft., including a fully finished basement, it offers the largest living space in the lineup. This model is ideal for homeowners who see their Garden Suite as a long-term investment or want to accommodate a full family comfortably. While the per sq. ft. price is higher, the scale and functionality of this design deliver exceptional long-term value, particularly in high-demand rental markets.
Single-Story Garden Suite (No Basement) – $265 per sq. ft.
The single-level design without a basement is priced at $265 per sq. ft., making it the highest per-unit cost option. With 600 sq. ft. of living space, it’s compact and easy to maintain, but the limited size makes it less efficient in terms of cost per sq. ft. compared to larger models. This option works best for homeowners who prefer simplicity and minimal upkeep, though from an investment perspective, other layouts offer stronger returns for the same budget.
Comparing All Our Garden Suite Models – Which One Is Right for You?
Each Garden Suite model offers unique advantages, and the right choice depends on your budget, space requirements, and long-term goals. The Two-Story Unit (No Basement) is the most economical per sq. ft. and provides excellent living space without unnecessary extras, making it a smart option for families or rental purposes. The Two-Level Unit with Basement balances cost and functionality, adding valuable usable space at a modest price increase—ideal if you need storage, an office, or more flexibility.
For those who want the most space and see their Garden Suite as a future-proof investment, the Three-Level Unit with Basement offers unmatched comfort and usability, supporting larger families or generating premium rental income. While it has a slightly higher cost per sq. ft., its long-term value is undeniable. On the other hand, the Single-Story Unit (No Basement), though compact and the highest cost per sq. ft., is perfect for homeowners who prioritize simplicity, low maintenance, and a quick build.
Ultimately, all of our pricing is economical and cost-effective given the level of service and quality construction Milan Builders provides. The decision comes down to your budget, property limitations, and lifestyle needs. Whether you choose compact efficiency, balanced versatility, or maximum space, we ensure your investment delivers long-lasting value.
2025 Cost Overview – Average Figures
Here’s a ballpark estimate for a typical 600 square foot garden suite in Toronto (2025):
Construction & materials: CAD 200,000 – 250,000 (roughly CAD 333–417 per sq ft)
Permits & design fees: CAD 15,000 – 25,000
Utility hookups & site prep: CAD 20,000 – 40,000
Total Estimated Cost: CAD 235,000 – 315,000
Construction Materials & Labor Costs
Foundation & Framing: Concrete slab or frost-protected shallow foundations cost around CAD 8,000–15,000. Timber framing and structural work runs CAD 50–80 per square foot.
Roofing, Siding & Finishes: Roofing (asphalt shingles) may cost CAD 8–12 per sq ft; siding (vinyl, fiber cement) ranges CAD 10–25 per sq ft. Interior finishes such as drywall, flooring, and fixtures add CAD 50–100+ per square foot.
Permits, Design, and Consulting
Toronto’s permits include a Garden Suite Zoning Approval, which can run CAD 10,000–15,000, depending on complexity. Add an architect or designer fee of 5–10% of construction cost (≈ CAD 10,000–20,000). Structural engineer or legal zoning consultations may add CAD 2,000–5,000.
Site Preparation & Utility Connections
Site prep—demolition, excavation, grading, landscaping—can cost CAD 10,000–20,000. Utility hookups:
Electrical: CAD 5,000–10,000
Plumbing: CAD 5,000–10,000
HVAC: CAD 5,000–10,000
Altogether, utility costs typically range between CAD 20,000–40,000.
Ongoing Maintenance & Operational Costs
Utilities: Expect around CAD 150–300 monthly (electricity, heating, water).
Property Taxes & Insurance: An additional CAD 1,000–2,500 annually.
Routine Maintenance: Budget CAD 1,000–2,000 per year for general repairs and upkeep.
| Cost Component | Approximate Cost (CAD) |
|---|---|
| Construction & Materials | 200,000 – 250,000 |
| Permits & Design Fees | 15,000 – 25,000 |
| Site Prep & Landscaping | 10,000 – 20,000 |
| Utilities (E, P, HVAC Connections) | 20,000 – 40,000 |
| Total Estimated Cost | 235,000 – 315,000 |
| Annual Maintenance & Utilities | 3,200 – 5,800 per year |
Factors Affecting Costs
Size & Design Complexity: Bigger or uniquely shaped suites with custom features raise costs.
Material Choices: Premium finishes (hardwood, quartz, high-end fixtures) significantly increase prices.
Site Conditions: Sloped or tricky backyards, poor soil, or need for retaining walls can add prep costs.
Cost-Saving Strategies
Pre-designed modular units: These often cost CAD 250–350 per sq ft—cheaper and faster to install.
Grants & Incentives: The City of Toronto sometimes offers rebates for efficient, sustainable garden suites—check the latest programs.
Phased Construction: Spreading permits and build over time helps manage cash flow and reduces loan interest.
Financing Your Garden Suite
Home Equity Loan: Many homeowners finance with a HELOC—it can offer low-interest rates and flexible repayment.
City or Province Programs: Occasionally, loans or grants exist for affordable housing initiatives.
Budget Planning Tips: Include contingency of 10–15% in your budget for unexpected overruns.
Energy Efficiency & Sustainability
In 2025, building energy-efficient garden suites in Toronto isn’t just environmentally friendly—it’s financially smart. Ontario building codes now encourage Net Zero Ready standards.
Cost Add-Ons for Green Features:
Solar panels: $10,000–$18,000 (can offset 70–100% of energy needs)
High-efficiency insulation: +$3,000–$6,000 upfront, but reduces heating/cooling bills by up to 30%
Rainwater harvesting systems: $1,500–$4,000 for garden irrigation and greywater use
Triple-glazed windows: +$4,000–$8,000 but improve soundproofing and efficiency
Savings Potential: Over 25 years, a green build can save $20,000–$40,000 in utility bills.
Labour Market Impact on Cost
The construction labour market in Toronto has been tight since 2023. Skilled trades like electricians, plumbers, and framers command higher rates.
2025 Labour Rate Estimates in Toronto:
Electricians: $100–$140/hour
Plumbers: $90–$130/hour
Carpenters: $60–$90/hour
General labour: $35–$55/hour
Tip: Hiring a design-build firm can streamline costs, but always compare quotes from at least 3 contractors.
Hidden Costs to Watch Out For
Many homeowners overlook extra expenses:
Soil Testing – If your lot has unstable soil, extra foundation work may be required ($2,000–$5,000).
Tree Removal Permits – Protected trees on your property require city approval; removal may cost $1,000–$5,000.
Upgraded Water Main – In older Toronto neighborhoods, water pressure may require a new connection ($3,000–$8,000).
Neighbour Agreements – Legal agreements for shared access pathways can cost $1,000+ in lawyer fees.
Return on Investment (ROI) Potential
In Toronto’s rental market, a 1-bedroom garden suite can rent for $1,700–$2,200/month in 2025.
At $2,000/month, that’s $24,000/year gross income.
A $250,000 build could pay itself off in 10–12 years, excluding maintenance.
Step-by-Step Budget Planning for Your Garden Suite
Get a Feasibility Study – $1,000–$2,000 to assess zoning compliance.
Secure Financing – Choose loan option before starting design.
Hire a Designer or Architect – Prepare drawings and apply for permits.
Get Multiple Contractor Quotes – Ensure detailed scope and timelines.
Add a 10–15% Contingency – Construction surprises are common.
Plan for Furnishing & Landscaping – Often overlooked in budgets.
Conclusion – Planning Your 2025 Garden Suite
The Garden Suite Cost in Toronto is a major but worthwhile investment.
Expect to budget $235,000–$315,000 for a typical unit, with possible savings from modular builds or incentives. With strong rental potential, added property value, and family flexibility, a garden suite can be one of Toronto homeowners’ smartest long-term moves.
FAQs
What’s the average cost per square foot?
Around CAD 333–417 per sq ft for typical builds; modular may run CAD 250–350.
How long does permitting take?
Approval can take between 3 to 6 months, depending on application complexity.
What size qualifies as a garden suite?
Generally between 400 and 700 square feet, though Toronto bylaws define zoning limits.
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