The Average Cost of Modular Homes in Ontario

A Full Cost Assessment of Modular Homes and How Those Costs Compare to Conventional Home Building

Simon Dauphinee

Published: May 20, 2025

Modular homes are becoming increasingly popular in Ontario as a cost-effective, efficient and customizable alternative to traditional site-built homes. With faster construction timelines and potential savings, they offer an attractive option for prospective homeowners. However, it is essential to understand the full range of costs, like base prices, additional expenses and regional variations, to make an informed decision.

What’s the Base Cost of a Modular Home?

It’s necessary to start any discussion about modular home cost with a caveat: like all home construction costs, there is a wide range of pricing due to factors like size, location, customization and the quality and quantity of finishes. Here I’m outlining a typical cost range for a modular home. Serious buyers are encouraged to contact building companies to find out what their specific prices are.

Cost per Square Foot

In Ontario, the base price for modular homes typically ranges from $150 to $250 per square foot, depending on factors like design complexity and material and finish selections. The size of the home also has an impact. The smaller the size of the home, the higher the cost per square foot since fixed costs are spread over less size. When accounting for additional expenses such as land preparation, foundation and utility connections, the turnkey cost can range from $200 to $450 per square foot.

Total Cost of a Modular Home in Ontario (By Size)

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Examples from Ontario Builders

The following are examples of some modular home options available in Ontario, catering to various budgets, sizes and lifestyle preferences. There is a wide range of builders, each offering unique designs and customization options to suit individual needs.

Guildcrest Homes

Guildcrest Homes offers the Galway, a 1,087-square-foot modular home featuring three bedrooms and one bathroom. The design includes an open-concept living area encompassing the kitchen, dining and living rooms. Guildcrest Homes provides a general estimate for their homes, ranging from 1,000 to 1,300 square feet, at approximately $170 per square foot, FOB (Free On Board) at the yard with standard finishes. Based on this estimate, the Galway model would cost around $184,790.

Royal Homes

Royal Homes has the Bala LE, a 1,660-square-foot modular bungalow with three bedrooms and two bathrooms. The layout includes a large open-concept kitchen, dining, living area and a spacious primary bedroom with an ensuite. A covered porch adds outdoor living space, and the home’s design emphasizes function and comfort.

Prices for a complete home, including foundation, vary from $350 to over $450 per square foot, depending on customization, which places the Bala LE in the range of approximately $580,000 to $747,000. 

Simple Life Homes

Simple Life Homes offers the Little Narrows, a 1,373-square-foot modular bungalow featuring three bedrooms and two bathrooms. The design centres around a sunlit, open-concept living area, with two separate bedroom wings and a covered entry to maximize natural light and energy efficiency. 

The shell package for the Little Narrows model starts at $215,000 and includes high-performance insulation, structural components windows, doors and delivery.

Additional Costs for Modular Homes in Ontario

When budgeting for a modular home, you need to account for several additional costs that can significantly impact the overall expenditure. These include foundation construction, utility connections, permits, land preparation and delivery and installation. These additional costs are crucial when planning your modular home project in Ontario as they can significantly influence the total investment required. It’s best to consult with local contractors to get accurate estimates tailored to your specific location and project scope.

Land Preparation

Before any construction can start, the land must be adequately prepared; the existing state of the land will determine the extent of preparation needed. Land prep typically includes clearing, which can cost between $1,500 and $4,000, followed by excavation, $1,600 to $4,400+ and grading, $600 to $2,000. A land survey confirming boundaries and site suitability generally adds another $350 to $1,000 to the project.

Cost of a Foundation for a Modular Home

One of the most significant cost variables is the foundation type. A simple slab foundation can range from $6,000 – $15,000, while a crawl space can cost $10,000 – $20,000. Meanwhile, a full basement foundation can range from $30,000 and up, not including finishes to make it liveable. In that case, $60,000 – $100,000 is typical in Ontario. A more budget-friendly option, pier and beam foundation, usually costs between $5,000 and $10,000, though they may be less common for year-round dwellings in colder regions.

Utility Connections

Connecting your modular home to essential utilities is a critical step in the building process. Costs can vary significantly based on distance from existing utility lines, terrain and local regulations.

Electricity

Running electrical service from the road to your home can range from $4,000 – $20,000, with an average cost of $12,250 for a 500-foot distance. Overhead lines are generally less expensive, costing between $4,000 – $7,500 for 500 feet, while underground lines can be more costly due to trenching and conduit installation requirements.

Water

If connecting to a municipal water supply, costs can reach up to $200 per linear foot, depending on the distance and local fees. Alternatively, drilling a private well typically costs between $3,000 – $15,000, influenced by factors like depth, soil conditions and water table levels.

Septic System

Installing a septic system averages between $15,000 and $50,000, with the national average around $30,000. Costs depend on the system type, number of bedrooms in the home, soil conditions and labour. Additional expenses may include percolation tests and soil evaluations.

Permits and Fees

Permits and municipal fees are required for most builds and vary widely by region and project complexity. A standard building permit can cost between $500 and $4,000, while utility connection permits may have flat rates or be calculated based on project value. The building permit process often includes occupancy permits, but this should be confirmed with the local municipality.

Home Delivery and Installation

Finally, there are the costs of delivery and installation. Transporting the modular sections to the building site usually costs between $3,000 and $12,000, depending on distance and road conditions. Once delivered, the installation phase, which includes assembling modules, connecting systems and finishing the home, can add another $10,000 – $50,000 to the total cost.

Regional Price Variations in Ontario

Modular home costs in Ontario can vary significantly based on regional factors such as land prices, labour costs, transportation logistics and local regulations. Each area’s unique characteristics can significantly impact your build’s overall cost and feasibility.

For example, higher land prices and labour costs in Toronto typically result in more expensive overall builds. Conversely, Ottawa offers more moderate pricing, with a good selection of local modular home builders and easier access to services. 

In rural Ontario, land is generally more affordable, but costs can rise due to longer delivery distances and the potential need for more elaborate utility connections. Similarly, transportation and logistics may increase costs in remote, northern Ontario locations.

Modular Homes vs. Conventional Home Build Costs

The federal government tracks construction cost trends through Statistics Canada’s Building Construction Price Index (BCPI), which monitors contractor pricing for new residential builds across major cities. As of Q4 2024, residential construction costs increased by 0.8 percent quarter-over-quarter and 3.7 percent year-over-year, with Ontario’s urban centres like Toronto and Ottawa reflecting higher-than-average cost growth.

Now, the BCPI data only shows overall trends and doesn’t publish per-square-foot costs. However, industry sources estimate the average cost to build a custom detached home in Ontario to be $300 to $600+ per square foot. These figures exclude the price of land, which varies widely by location.

Cost Comparison of Modular vs Site-built Home Construction

Key Takeaway

While the upfront effort of sourcing land and managing construction might seem daunting, a new modular home often results in better efficiency and lower operating costs at a lower cost per square foot, especially outside major urban areas.

Incentives and Rebates for Modular Homes

Ontario New Housing Rebate

Eligible individuals building a house in Ontario may claim a provincial new housing rebate for some of the provincial part of the HST paid. This kickback applies to owner-built houses, including modular homes, intended as primary residences.

Modular homes offer a compelling path to homeownership for buyers seeking affordability, efficiency and sustainable designs. Often, building this way can reduce construction time and cost per square foot compared to conventional builds, particularly in regions outside major urban centres and they excel at reducing construction waste and producing an energy-efficient home.