What Does a Garden Suite Cost in Toronto? A 2026 Guide

Garden suites — also known as accessory dwelling units, laneway houses, or backyard homes — have become one of the most popular building projects in Toronto since the city amended its zoning bylaws in 2022. But the first question every homeowner asks is the same: what will it actually cost?

The short answer: most garden suites in Toronto range from $250,000 to $450,000 or more, depending on size, finishes, and site conditions. But that range is wide for a reason. A 350-square-foot studio with standard finishes is a fundamentally different project than a 900-square-foot two-bedroom unit with premium materials and a full kitchen.

At Metrohomes, we have been building garden suites across the GTA since the zoning changes took effect, and we have seen costs vary significantly based on a few key factors. Understanding these factors early in the process helps homeowners budget realistically and avoid surprises.

Size is the biggest cost driver. Studio units (300 to 400 square feet) typically fall in the $250,000 to $350,000 range. One-bedroom-plus-den units (500 to 700 square feet) run $300,000 to $400,000. Two-bedroom units (700 to 1,000 square feet) start around $375,000 and can exceed $450,000 with upgraded finishes.

Site conditions play a major role that many homeowners underestimate. A flat, easily accessible backyard with existing municipal services nearby is the ideal scenario. But if your lot requires significant grading, tree removal, extended utility runs, or a crane to get materials over the house, those costs add up. We have seen site preparation alone range from $15,000 on a straightforward lot to $50,000 or more on challenging sites.

Permits and professional fees typically account for $15,000 to $30,000 of the total budget. This includes architectural drawings, structural engineering, site plan applications, and building permits. Toronto's garden suite permit process currently takes four to eight weeks on average, though complex applications can take longer.

Finishes and fixtures are where homeowners have the most control over cost. Standard-grade kitchens, bathrooms, and flooring keep costs predictable. But upgrades like quartz countertops, hardwood floors, custom cabinetry, and high-end appliances can add $30,000 to $60,000 to the final number. We always recommend choosing your finish level early so we can provide an accurate budget.

One cost that catches people off guard is the mechanical systems. A garden suite needs its own heating, cooling, electrical panel, plumbing, and sometimes a separate water meter. These systems are a fixed cost regardless of unit size — a 350-square-foot studio needs essentially the same HVAC system as a 600-square-foot one-bedroom.

The return on investment makes garden suites compelling despite the upfront cost. A well-built garden suite in Toronto can generate $2,000 to $3,500 per month in rental income, and studies suggest they add 20 to 30 percent to overall property value. Many of our clients see a full return on their investment within eight to twelve years through rental income alone.

If you are considering a garden suite, the best first step is a feasibility consultation. We assess your lot, discuss your goals, and provide a realistic budget range before any commitment. Every property is different, and understanding the specific conditions of your site early saves time and money down the road.