Building a custom home is an exciting yet complex process, and with rising construction costs, new design trends, and fluctuating real estate prices, homeowners and investors must plan wisely. Matt King from Kingsgate Construction joined Ariel and Adrian on The Real Estate Podcast and discussed everything you need to know about building custom homes, major renovations, and what’s trending in home construction.

If you’re considering a custom build, a major home renovation, or even investing in real estate, this episode is packed with insights to help you make the right decisions.

Where to Start When Planning a Custom Home

Thinking about building your dream home? Here’s where to begin:

1️⃣ Find the right property. Whether it’s an empty lot or an existing home to tear down, location is key. Many buyers hesitate to purchase a teardown property, but demolishing an old home typically costs only $15,000–$20,000, which is often more cost-effective than raw land because it already has the necessary access and services.

2️⃣ Check zoning & permits. Before purchasing, investigate restrictions, conservation regulations, septic requirements, and utility availability.

3️⃣ Choose an architect based on your style. Kingsgate Construction works with top architects based on whether you want a modern, contemporary, or traditional design. Finding somebody who you connect with will likely result in them bringing your vision to life more effectively.

4️⃣ Start designing your dream home. Pinterest boards and inspiration photos help architects and builders create a blueprint that fits your vision and budget.

🚨 Planning Tip: The custom home process takes at least 6 months to a year for design and approvals before construction even begins.

Major Home Renovations vs. Custom Builds

Many homeowners face a tough decision: renovate or rebuild?

✅ When to renovate:

• If the home’s layout and ceiling heights work well
• If you want to preserve historical charm
• If the home is structurally sound but needs cosmetic updates

✅ When to rebuild:

• If the layout doesn’t fit modern living needs
• If ceiling heights are too low (e.g., under 9ft)
• If major structural changes would cost more than a teardown

💡 Cost Breakdown:

• A full home renovation can easily cost $700K–$1M
• A new build on the same lot can often provide better value and flexibility for future needs

Trends in Custom Homes & Luxury Renovations

🏡 What’s trending in custom home design?

• Wellness features: Home gyms, saunas, steam showers
• Smart home tech: Advanced automation, security, and lighting controls
• Walk-in pantries: More homeowners are prioritizing large storage spaces
• Luxury kitchens & entertaining spaces: High-end appliances, open-concept layouts, and built-in bars
• Larger windows & natural light: Expansive glass walls for seamless indoor-outdoor living

💡 Pro Tip: Even if you don’t install high-end features like a golf simulator or soundproof media room right away, roughing in the wiring and infrastructure during construction saves money down the road.

How Much Does It Cost to Build a Custom Home?

One of the biggest questions homeowners have when considering a custom home is how much it costs per square foot.

📌 Pre-COVID: Custom home builds averaged $350–$450 per sq. ft.
📌 Current Market: Today, the starting price is $500 per sq. ft., with most custom homes ranging between $550–$800 per sq. ft.

✅ What impacts the cost?

• High-end finishes, smart home technology, and custom features
• Site preparation (e.g., clearing an old house vs. starting on raw land)
• Zoning restrictions, conservation authority approvals, and permit costs
• Labor and material price increases

💡 Budget Tip: If you’re planning a custom home, budget around $600 per sq. ft. to ensure you have flexibility with finishes and unexpected costs.

The Future of Construction Costs & Real Estate

With rising inflation, material costs, and labor shortages, the cost of custom homes has nearly doubled since 2019.

📉 Will prices drop?
While costs seem to have leveled out, builders are keeping an eye on the political climate and potential trade tariffs, which could impact construction materials from the U.S.

🏠 Real estate values are still strong. Even though home prices have fluctuated, long-term demand for custom homes in Milton, Oakville, Burlington, and the GTA remains high.

Thinking About Building a Home? Here’s How We Can Help

At Kingsgate Construction, Matt and his team specialize in custom home builds and luxury renovations throughout the GTA.

🔹 Need help finding the right lot? Our team of real estate agents in Milton can help you secure the perfect property. Whether you’re looking at Halton, Peel or surrounding areas, we can help navigate the process to finding the perfect rural or urban lot to suit your dream home.

🔹 Looking for expert builders & designers? We’ll connect you with top architects, designers, and construction professionals.

🔹 Have questions about costs & timelines? We’ll help you plan effectively to avoid unexpected surprises.

📢 Thinking about building your dream home? Contact us today to start the conversation!

💬 Would you rather build new or renovate your existing home? Drop your thoughts in the comments!

Follow Kingsgate Construction for More

Want to see more custom homes and luxury renovations in action? Follow @KingsgateConstruction on Instagram for project updates, behind-the-scenes videos, and expert tips!

🔔 Don’t forget to subscribe to The Real Estate Podcast for more expert insights!