Home Addition vs. Moving in Ontario — Which Is Better in 2026?

The True Cost of Moving in Ontario

Between Land Transfer Tax (which is doubled in Toronto), real estate commissions (typically 5%), and moving fees, it often costs $75,000 to $125,000 just to swap homes without actually gaining any equity. That same money could fund a significant home addition.

The True Cost of a Home Addition in Ontario

A second-storey addition or a "bump-out" foundation extension usually starts at $150,000. While the upfront cost is higher, you are building direct equity into your existing property.

When a Home Addition Makes More Sense

If you love your neighbourhood, schools, and neighbours, but just need more space, an addition is almost always the better emotional and financial long-term choice.

When Moving Makes More Sense

If your lot is too small for an addition or if you’ve already maximized your "floor area ratio" according to local zoning bylaws, moving may be your only option for growth.

Home Addition ROI in Southern Ontario

Adding a primary suite (bedroom + bathroom) typically sees a 60% ROI, while adding a sunroom or non-essential space sees a much lower return.