Post Views: 45

Why Price Per Square Foot Is a Trap (and What It Really Costs to Build a Home in Canada)

When people start thinking about building a home in Canada, one of the first questions they ask is: “How much per square foot?”

You’ll easily find a builder ready with an answer: “$250/sq.ft!”, “$300/sq.ft turnkey!” or even “just $199!”.

It sounds simple. Too simple.

But the truth is that the price per square foot is a marketing hook, not a real budget. It gives a false sense of clarity — and often ends with a ‘box’ instead of a livable home, plus tens of thousands of dollars in unexpected costs.

Let’s break down what’s actually included in those numbers, what usually gets left out, and how not to fall into the trap.

What’s Usually Included in the Price per Square Foot

Most builders calculate that price based only on the basic structure, meaning:

Walls
Roof
Windows and doors
Insulation
Rough-in electrical and plumbing
Sometimes — drywall

In other words: a home without life. No kitchen. No bathrooms. No finishes. Sometimes not even flooring or paint.

Let’s say a builder quotes you $350 per square foot. Sounds fine, right?

You want a 2 000 sq.ft home. So that’s $700 000.

But that’s only if you’re okay living in a drywall box and ordering takeout.

What About the Foundation?

Surprisingly, the foundation is often not included in the advertised cost.

Why? Because it’s usually contracted separately, and prices vary depending on the type:

Strip or slab foundation: $40 000–$60 000+
Full basement foundation: $80 000–$150 000+

In fact, a basement can cost as much as a small garden suite.

In Canada, concrete basements are the ‘standard approach.’ Many see them as storage or rental space. But the reality is:

They’re expensive — $80 000 to $150 000+
They’re slow — involve digging, pouring, drying
They’re messy — your yard becomes a construction zone
They’re bureaucratically complex — more permits may be needed

And renting out a basement is not the same as renting a separate garden suite: it offers less privacy and lower rental value.

Modern Accessory Dwelling Unit -Garden Suite designed for comfort and sustainability, featuring eco-friendly materials and energy-efficient technology. A perfect retreat blending nature and luxury.

What’s Usually NOT Included

Here’s a list of things that are often not included in the quoted per sq.ft price:

Architecture and design — plans, 3D renderings, municipal submissions
Engineering — structure, HVAC, septic, site layout
Permits and inspections — can take months and cost thousands
Project management — someone needs to coordinate timelines and trades
Kitchen and appliances — one of the biggest expenses
Plumbing fixtures — sinks, toilets, tubs
Interior finishes — tile, lighting, cabinets, flooring
Furniture and window coverings
Landscaping — driveway, decks, fences
Utilities — connection to water, power, gas
Legal and financial services — HST, notary, bank fees

In reality, it’s not $350/sq.ft — it’s $500–700/sq.ft depending on the level of finish and scope.

A Real-Life Example

You go to a home show. You ask a builder:

— How much per square foot?

He smiles:

— $280/sq.ft — and you get a beautiful home!

You get excited. You grab a calculator:

2 500 sq.ft × $280 = $700 000

“Nice! That’s in my budget!”

Four months later:

Foundation: $80 000–$150 000+
Design: $25 000
Permits and servicing: $40 000
Finishing: $30 000
Plumbing fixtures: $40 000–$60 000+
Heating: $20 000+
Kitchen: $60 000
Landscaping and driveway: $50 000
Furniture, appliances, blinds: $80 000
Extras, upgrades, surprises: $60 000

Total: $1 145 000–$1 350 000+

Wait… what happened to $700 000?

Here’s the point: builders sell you a box, but you live in the details.

The Real Cost Breakdown in Canada

Here’s what the real cost of a home looks like when you add it all up:

Core Construction (labour + materials) — 40%
Architecture & Design — 9%
Engineering (structural, HVAC) — 9%
Permits & City Fees — 5%
Project Management — 5%
Kitchen, Bath, Appliances — 9%
Furniture & Interior Design — 9%
Landscaping, Fencing, Driveway — 6%
Legal, Financing, Taxes — 3%
Utility Hookups, Servicing — 5%

That $/sq.ft quote? It only covers the first 40%.

The diagram Real Cost Breakdown in Canada

Why Builders Love $/sq.ft — and Why It’s Misleading

It’s simple — easy to quote and put on a website
It’s relatable — sounds easy to compare
It’s persuasive — “Oh, they’re cheaper than others!”

But it’s an illusion. As soon as you sign the contract and real costs kick in:

“This isn’t what I expected.”

“That’s not included — it’s an upgrade.”
“You want nicer tile? That’s extra.”
“Engineering sign-off? That’ll cost more.”

You either blow the budget — or sacrifice your dream.

Questions You Should Ask Your Builder

Look for someone who speaks your language — not in sq.ft, but in finished homes.

Ask questions like:

“What exactly is included in your quote?”
“Does it cover design, permits, management?”
“Will the home be move-in ready?”
“What could make the budget increase?”
“How much did your past clients end up paying in total?”

What Makes VIGO HOUSE Different

VIGO HOUSE doesn’t sell walls. We build complete homes — ready to live in or rent out. Our all-inclusive approach covers:

✔️ Architecture, engineering, permits
✔️ Full construction and interior finishing
✔️ Kitchen (included in A++, A+++ packages)
✔️ Plumbing fixtures — sinks, toilets, tub (included in A++, A+++ packages)
✔️ Electric floor heating and ventilation (included in A++, A+++ packages)
✔️ Airbnb/Booking integration (for investment models)
✔️ Exterior drainage system
✔️ Usable flat roof (all our homes have rooftop decks)
✔️ Screw pile foundation, which:
- Installs quickly (1–2 days)
- Requires no excavation
- Is clean, durable, and suitable for Canadian climate
- Is already included in the home price

We spare our clients the mess, delays, and hidden costs — because we don’t build by the square foot, we build complete, ready-to-live homes. That’s why we always provide the full price of the home upfront, not a vague $/sq.ft estimate. Too often, buyers compare square foot prices without knowing what’s actually included — falling into a marketing trap that hides the real cost behind an attractive number.