We built a garden suite in our East York backyard. 18 months from permit application to occupancy. Here is the unvarnished account of what it actually cost and what we learned.
Our lot: Standard Toronto 25x120 foot lot. 600 sqft backyard available after accounting for setbacks. Toronto’s garden suite bylaw allows 60 sqm maximum ground floor — we designed to 55 sqm (592 sqft) to give a small buffer.
Design: 1-bedroom, 1-bathroom, open-concept living/kitchen. All on one floor (no second storey — would have triggered additional zoning reviews). Target: CMHC market rent for a 1BR in East York.
Permit process: Toronto ARU/Garden Suite permit. We hired an architect ($8,400) — not optional, the complexity of the application required stamped drawings. Permit application: submitted October 2024. Permit issued: March 2025. Five months for a fairly straightforward application.
Utility connections (the budget-buster):
- Water service tap from city main (new 3/4" copper): $11,200 (city work, fixed fee)
- Sewer connection (new lateral to city sewer): $9,800
- Electrical service (Toronto Hydro, new 100A service): $7,400
- Utility total: $28,400
Construction costs:
- Foundation (helical piers — no full excavation required on our lot): $18,600
- Framing, sheathing, roofing: $42,000
- Windows and exterior doors: $9,200
- Exterior cladding (fibre cement): $11,800
- Mechanical (mini-split, HRV): $8,400
- Plumbing rough-in and finish: $14,200
- Electrical rough-in and finish: $11,600
- Insulation: $7,800
- Drywall and paint: $9,400
- Kitchen (IKEA with quartz counter): $8,200
- Bathroom: $11,400
- Flooring (LVP throughout): $4,200
- Site work, grading, path: $6,800
- Construction total: $163,600
Grand total (design + permits + utilities + construction): $206,400
Rental income: Rented at $2,350/month (1BR East York, market rate). Gross annual: $28,200. At that rate: 7.3 years to break even on construction costs alone, not counting property tax increase or financing costs.
We have no regrets — it is a well-built space our tenant loves and adds $350,000+ to our property value by appraisal. But anyone expecting this to pencil out in 4-5 years is working with fantasy numbers.