$250–$500+
Per sq ft to build, London area (2026 market range)
$50,564
City of London development charge, single detached (2026)
Mar 31, 2027
Deadline for the all-buyer new-home HST rebate
A custom home in London, Ontario typically costs about $250 to $500+ per square foot to build in 2026, which puts a 2,000 sq ft home at roughly $500,000 to $1,000,000+ before land. Inside the city's urban growth area you also pay a $50,564 development charge on a new single detached home, plus servicing, site work and soft costs. Those are market estimates, not a quote, and the rest of this guide shows how the London number is built.
Our Ontario-wide cost guide covers the general mechanics: the three budget buckets, the five things that move the per-square-foot figure, and why the envelope is the last place to cut. This page is the London version, with the city's own 2026 charges, the local servicing questions, and the tax relief that applies to homes started in the next few months.
Cost per Square Foot in London (2026)
| Build type | Typical range per sq ft | What you get |
|---|---|---|
| Production-style | $200–$300 | Repeat plans, standard spec, easy lot |
| High-performance custom | $300–$450 | Your design, continuous insulation, triple glazing, heat pump, tested airtightness |
| Luxury / estate | $450–$500+ | Complex design, premium finishes, larger mechanical systems |
London-area market estimates for the build only (foundation to finishes), excluding land, servicing, development charges and HST. For comparison, Ontario-wide guides published in 2026 put mid-range custom at about $375–$525 per sq ft (Builders Ontario, October 2026), with the Greater Toronto Area pulling that average up.
What a Whole London Home Adds Up To
| Home size | Build ($250–$500/sq ft) | Plus city development charge (inside UGA) |
|---|---|---|
| 2,000 sq ft | $500,000–$1,000,000 | + $50,564 |
| 2,500 sq ft | $625,000–$1,250,000 | + $50,564 |
| 3,000 sq ft | $750,000–$1,500,000 | + $50,564 |
Add the land, the servicing and site work (driveway, grading, excavation and either municipal connections or a well and septic), and soft costs. Ontario guides put soft costs at about $25 to $55 per square foot for design, engineering, permits, surveys and insurance, and recommend a 10–15% contingency. On a 2,400 sq ft London home, the development charge alone works out to about $21 per square foot.
"In London the per-square-foot number is only part of the budget. The city's development charge is a fixed $50,564 on a new detached home inside the growth area, and it belongs on the first spreadsheet, not the last."
London Development Charges in 2026
Development charges pay for the roads, pipes and parks that new homes use. The City of London's 2026 rates took effect January 1, 2026 under By-law C.P.-1551-227, up 4.2% on 2025, and are collected after the first building permit is issued.
| Per unit (2026) | Inside urban growth area | Outside urban growth area |
|---|---|---|
| Single or semi-detached | $50,564 | $32,483 |
| Row / multiple | $34,195 | $21,970 |
| Qualifying additional unit (garden suite) | Exempt | Exempt |
Source: City of London 2026 development charges. Roads ($25,150) and stormwater ($10,240) are the largest parts of the single detached charge. Rates are reset each January, so check the current sheet for a 2027 start. Towns around London, such as Middlesex Centre and St. Thomas, set their own charges.
Servicing: City Lot or Country Lot
On a serviced London infill lot you connect to municipal water and sewer, pay the city's connection and permit fees, and often deal with a tight site: demolition of an older house, tree protection and limited room for equipment. Outside the city, in Middlesex Centre or Elgin County, you usually trade those for a well (about $10,000 to $25,000) and a septic system (about $15,000 to $40,000), longer driveways and, near creeks and ravines, a conservation authority permit before the building permit (Green Building Canada, 2026).
Neither is cheaper by default. The lot review at the start of every project exists to find these costs before you pay for drawings. If you already own land near Komoka, Ilderton or St. Thomas, our pages on building in St. Thomas and custom builds on your lot walk through the extra checks.
HST Relief and Rebates That Lower the Bill
First-time buyer HST relief
First-time buyers can recover the full 13% HST on a new home up to $1 million (5% federal GST plus Ontario's 8%), phasing out to $1.5 million, for agreements from March 20, 2025.
All-buyer HST rebate (time-limited)
Ontario and the federal government announced relief of up to $130,000 for any buyer of a new home up to $1.5 million, for agreements signed April 1, 2026 to March 31, 2027. Ontario passed its share in May 2026. Owner-built homes on your own lot follow different rules, so confirm eligibility with an accountant.
CMHC Eco Plus
A 25% refund of your mortgage loan insurance premium on a new home built to a recognised standard such as CHBA Net Zero, Net Zero Ready or ENERGY STAR. Apply within two years of closing.
Home Renovation Savings
For existing homes, Ontario's Save on Energy and Enbridge program pays up to $7,500 for a cold-climate air-source heat pump. The Canada Greener Homes Grant and Loan are closed to new applicants.
Sources: Mondaq, June 2026; CMHC Eco Plus; Save on Energy. Tax and rebate rules change; this is a summary, not tax advice.
Where the Extra Money Pays You Back
The difference between a $300 and a $450 per square foot house is mostly finishes and design complexity. The envelope is a smaller share of the budget, and it is the part that keeps paying: every Starlit home is blower-door tested, with a guaranteed result of 1.5 ACH50 or better and a portfolio average of 0.85, against roughly 3.5 for a typical code-built Ontario home. A tight, well-insulated house needs a smaller heating system, costs less to run every month, and can qualify for CMHC Eco Plus. Our Net Zero homes page explains what that standard involves.
Key Takeaways
A custom home in London typically costs about $250–$500+ per sq ft to build in 2026, before land, servicing and fees.
London's 2026 development charge is $50,564 for a single detached home inside the urban growth area and $32,483 outside it.
A 2,000–3,000 sq ft London home usually lands between $500,000 and $1.5 million for the build alone.
Agreements signed by March 31, 2027 may qualify for up to $130,000 of HST relief; confirm owner-built eligibility first.
Rural lots swap city connection fees for a well and septic system, often $25,000–$65,000 combined.
Spend on the envelope before the finishes: it lowers running costs for the life of the house.
Ready for a number for your own lot? Start with a lot review, or see how we work as a custom home builder in London, Ontario.
Common questions
How much does it cost to build a custom home in London, Ontario in 2026?
Typically about $250 to $500+ per square foot for the build itself, so roughly $500,000 to $1,000,000+ for a 2,000 sq ft home, before land. On top of that sit the City of London development charge ($50,564 for a single detached home inside the urban growth area in 2026), servicing and site work, and soft costs such as design, engineering and permits. These are 2026 market estimates, not a quote.
What are development charges on a new house in London, Ontario?
For 2026 the City of London charges $50,564 per single or semi-detached home inside the urban growth area and $32,483 outside it, under By-law C.P.-1551-227, effective January 1 to December 31, 2026. Roads ($25,150) and stormwater ($10,240) make up most of it. Qualifying additional residential units such as garden suites are exempt.
Is there an HST rebate on a new custom home in Ontario?
Yes, several. First-time buyers can recover the full 13% HST on a new home up to $1 million, phased out to $1.5 million. Ontario and the federal government also announced a one-year rebate for all buyers of up to $130,000 (the full 13%) on new homes up to $1.5 million, for agreements signed from April 1, 2026 to March 31, 2027; Ontario passed its share in May 2026. Rules for owner-built homes on your own lot differ from a purchase agreement, so confirm your eligibility with an accountant before you count on it.
Does an energy-efficient home cost less to insure or finance?
It can. CMHC Eco Plus refunds 25% of the mortgage loan insurance premium on a new home built to a recognised efficiency standard such as CHBA Net Zero, Net Zero Ready or ENERGY STAR, if you apply within two years of closing.