Home renovation is big business, never more so since the pandemic. Combine this with Toronto’s booming property market, and you’ve got a perfect storm, with ever more people jumping into the fray to make their millions via smart home renos. But how much does it actually cost to renovate a property, and is it really worth the effort? Here we’re going to take a look at what it means to renovate in the Toronto market.

Source: HomeStars Reno Report 2023

 

Best Renovation Projects in Toronto

Toronto’s high property prices, limited supply, and aging housing stock make it a perfect place to snap up real estate that needs a little work. (And if you’re looking for a bargain, look no further than our blog on Discounted Properties in Toronto). But not every renovation project has to be purely for profit; since the pandemic, 29% of Canadians have chosen to renovate purely for lifestyle reasons. And regardless of reason, 73% of homeowners intend to complete at least one home improvement project within the next year. So which projects are the best to focus on?

 

Outdoor Pool Installation

Not every Toronto property has the space for a pool, but those that do will see big returns on the cost of installation. The combination of the rising cost-of-living and rising temperatures means more and more families are staying put through the summer, and are in need of a cooldown. Real estate experts are predicting that demand for homes with pools will only increase over the next few years, especially in family-friendly areas.

 

The Potential Costs

A middle-of-the-road in-ground pool can cost $20,000-60,000, depending on its size, shape, construction type, surround, and so on. Bigger and more luxurious pools can cost upwards of $90,000. You also need to budget for maintenance, which can cost $1,000-4,000 a year, depending on the type of pool. An above-ground pool is cheaper, at $2,000-8,000.

 

The Potential Upside

The thing to avoid with pool installation is a DIY feel; a bad pool or above-ground pool can actually have a negative effect on a property’s resale value. But a quality in-ground pool can increase a property’s value by up to 7%. 

 

Landscaping and Outdoor Living Spaces

One consequence of the pandemic is an increased focus on outside spaces, and landscaping improvements can be affordable and have a big impact. As well as improving curb appeal, they increase perception of a property’s size and its overall quality. And if you have the room, a dedicated outdoor living space, such as a deck, patio or gazebo, is even better. Toronto has seen a particularly strong shift towards outdoor upgrades in the past few years.

 

The Potential Costs

Many basic landscaping improvements can be done by homeowners, making them cheap and achievable. But if you’re opting for a designed garden or luxury space, this can quickly get expensive. Exact costs are highly variable and depend on the size of the space, location, features, materials used, plants chosen, and so on. The average Toronto homeowner spends between $2,000 and $7,000 for personalized landscaping projects, and an entire yard reno costs on average $17,000.

 

The Potential Upside

Landscaping is perceived as one of the most valuable ways to improve a home’s value - 55% of Canadians believe that it provides the best return on investment of any reno project. And they’re not wrong; good curb appeal can increase a property’s value by 5-8%. Studies have also shown that extensive landscaping, including landscaped outdoor living areas, can raise a property’s value by as much as 12%.

 

Painting

35% of homeowners intending to renovate plan to focus on smaller projects, such as painting. This is a smart move regardless of budget, as a fresh coat of paint can significantly improve a home’s appearance and modernity, while costing relatively little. Many choose to complete the painting themselves, but a word of warning: the effects will only be positive to your bottom line if the job is done neatly, professionally, and in neutral, crowd-pleasing tones.

 

The Potential Costs

The average cost to professionally paint is around $2-3 (plus HST) per square foot; so a 1200 square foot house would cost $3,300-5,500. This can be reduced to just a few hundred dollars if you’re willing to do the job yourself.

 

The Potential Upside

56% of Canadians think that painting is the best investment in their home, and they’re right. Painting is one of the top three renovations with the highest ROI for Toronto homes. You can expect to add an average of $4,000 to the value of your home with a well-completed paint job.

 

Kitchens and Bathrooms

Lastly, we can’t talk about home renovations without discussing kitchens and bathrooms. These ever-popular choices for home improvements can range in price, depending on the scale and level of the renovation project. A well-designed and comfortable kitchen or bathroom is absolutely a selling point, but it may not always return you as much as you put in.

 

The Potential Costs

The cost of remodeling a kitchen in Toronto can be anywhere from $10,000 to over $50,000, with the average sitting at $33,000. Smaller projects, such as replacing worn countertops, can cost significantly less ($100-200 per square foot) while improving the overall aesthetic and feel of a space. A full bathroom remodel costs from $9,000-20,000, depending on size and quality of finish, with the average project costing just under $14,000.

 

The Potential Upside

A high-quality kitchen renovation has the potential to increase a home’s value by up to 20% - although this level of return may not be seen in Toronto’s already expensive neighbourhoods. A new bathroom can add 4-5% in value.

Data source: RE/MAX Renovation Investment Report 2022

 

The Bottom Line

The average cost to renovate an entire property in Toronto is $350-500 per square foot, but the average homeowner spends just $12,000 on renovations per year. Clearly, most people can’t afford to do everything, but by considering the costs and returns mentioned above, hopefully you now have an idea of where to start.

If you’re curious about your property’s worth, or would like an expert’s opinion on the key areas to improve for future resale, talk to one of Sutton Group’s real estate experts for more advice.