The Real Cost of Bigger Homes in Toronto: Why Smaller May Be Smarter

Could the demand for larger and larger homes be fueling Toronto’s housing crisis? While many Canadians dream of sprawling suburban houses, the reality is that bigger homes come with bigger costs—both financial and environmental. In this post, we’ll explore the hidden cost of bigger homes in Toronto, compare them to efficient options like townhouses, and discuss how smaller, smarter housing can help address Toronto’s affordability challenges.


1. How Did Homes Get So Big?

Back in the 1950s, Canadian homes were built for practicality and affordability. The average house was about 1,000 to 1,200 square feet, designed for families of four or more. Today, single-family homes in Toronto often exceed 2,000 square feet, despite the average household shrinking to just 2.5 people.

So, why the shift? Over the decades, consumer expectations grew, and so did homes. Larger kitchens, extra bathrooms, and sprawling basements became the norm. But this push for space didn’t come without consequences.


2. The True Cost of Bigger Homes in Toronto

Maintenance Costs

A larger home isn’t just pricier upfront—it’s also more expensive to maintain. At $1–2 per square foot per year, a 2,500 square foot home could cost up to $5,000 annually in maintenance alone.

Utility Bills

Heating, cooling, and powering a large space can double or even triple energy costs compared to a smaller home. Larger homes are less energy-efficient and more taxing on the environment.

Property Taxes

The bigger your home, the higher your property assessment—and your taxes. Many Toronto families find themselves burdened by escalating costs they didn’t anticipate when buying.


3. A Smarter Option: Lambton Mills Townhouses

For those seeking space without unnecessary costs, projects like Lambton Mills offer a compelling solution. These modern townhouses, located right in Toronto, provide 1,825 to 3,090 square feet of living space, complete with:

  • 3-4 bedrooms
  • Private rooftop terraces
  • Full-floor primary suites
  • Indoor parking with EV charging

And here’s the best part: Pricing starts at just under $1.2 million—comparable to a 1,000 square foot condo in Toronto’s high-rise market. Lambton Mills proves that efficient, well-designed homes can meet family needs without breaking the bank.


4. Why Smaller Homes Are Cheaper to Build

One reason Lambton Mills can offer so much value is its low-rise construction model. According to Altus Group, low-rise housing in Toronto costs just $185–$300 per square foot to build, compared to $275–$380 per square foot for mid-to-high-rise condos. This 40% cost difference translates directly to more affordable homes for buyers.


5. Policy Changes That Could Help

Affordability isn’t just about construction costs—it’s also about public policy. Recent proposals by leaders like Bonnie Crombie aim to:

  1. Eliminate Land Transfer Tax for first-time buyers and seniors, saving families an average of $13,500.
  2. Scrap Development Charges on middle-class housing, which can add up to $170,000 per unit, and replace them with a Better Communities Fund to ensure sustainable growth.

These changes could further reduce the cost of efficient homes, making options like Lambton Mills even more accessible.


6. The NIMBY Problem

Unfortunately, progress is often blocked by NIMBYism—”Not in My Backyard” opposition. Builders like Blue Lion Build, who specialize in family-sized multiplexes, face resistance from communities that don’t want change. For example, one Blue Lion project almost had a 1,000 square foot garden suite scaled down to 600 square feet due to pushback.

To solve the housing crisis, Toronto must embrace the missing middle—affordable, well-designed housing in every neighborhood.


7. Could You Live in 1,200 Square Feet?

Smaller homes aren’t just cheaper—they’re smarter. By focusing on efficiency and functionality, projects like Lambton Mills show that families can thrive in less space while saving money.

The question is: Could you live in a 1,200 square foot home if it’s well-designed? Solving Toronto’s housing crisis isn’t about building bigger homes—it’s about building better ones.


Conclusion: Let’s Build a Better Toronto

Toronto’s housing challenges won’t be solved overnight, but there’s a clear path forward. By embracing smaller, smarter homes and supporting public policies that reduce costs, we can make homeownership attainable for more families.

What do you think? Are smaller homes the key to solving the housing crisis? Is the cost of bigger homes in Toronto not a big deal to you? Let us know in the comments, and don’t forget to share this post with anyone who needs to rethink their dream home!


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