How Size Impacts Price Per Square Foot in Ontario Prefab Homes
📅 Last updated: September 10th, 2025
✍️ Written by prefab building specialists at My Own Cottage
Understanding the cost per square foot of prefab homes in Ontario is essential for making informed decisions.
Many buyers assume that smaller homes are always cheaper, but prefab home pricing is influenced by more than just size. Fixed construction costs, efficiency, customization, and location all play a role.
Larger prefab homes usually cost less per square foot because fixed costs are spread across more space.
Smaller prefab homes often appear more expensive per square foot since fixed costs are absorbed by fewer square feet.
Total project cost still rises with size, even if the per-foot cost decreases.
👉 In short, choosing the right home size means balancing upfront costs with long-term value.
Prefab Home Costs in Ontario: Why Size Impacts Price per Sq. Ft.
In fact, the average prefab home cost in Ontario varies widely depending on square footage and finishes.
Smaller homes often appear more expensive on a per-foot basis, while larger modular homes can achieve better economies of scale.
This is why comparing price per square foot across different home sizes gives buyers a clearer picture of value.
👉 For a detailed breakdown of pricing models and averages, see our full guide on cost per square foot of prefab homes in Ontario.
Ontario Prefab Pricing: How Home Size Affects Cost per Sq. Ft.
Prefab home pricing combines fixed costs and variable costs:
Fixed costs – design, engineering, permits, delivery, and setup. These remain the same whether you’re building a 1,000 sq. ft. cottage or a 2,500 sq. ft. family home.
Variable costs – materials, finishes, and labor, which increase as square footage grows.
Because larger homes spread fixed costs over more space, the cost per square foot often decreases compared to smaller models.
Example Cost Comparison:
| Home Size | Total Cost | Price per sq. ft. |
|---|---|---|
| 1,000 sq. ft. | $250,000 | $250 |
| 2,000 sq. ft. | $440,000 | $220 |
| 3,000 sq. ft. | $600,000 | $200 |
✅ The bigger the home, the lower the price per square foot. In fact, it’s often cheaper to build a prefab home instead of buying an existing house in Ontario.
Comparing Small vs. Large Prefab Homes in Ontario
Small Prefab Homes in Ontario: Cost Breakdown & Price per Sq. Ft.
Smaller prefab homes in Ontario often carry higher per-square-foot prices because fixed costs make up a larger share of the total.
Example:
A 1,000 sq. ft. prefab cottage may cost $250,000 ($250/sq. ft.).
The same fixed costs spread across a larger home bring the per-foot cost down significantly.
Also of note, budget-conscious buyers are often surprised to see how land impacts prefab home costs in Ontario as well.
Ontario Modular Homes: Pricing for Medium & Large Prefab Builds
As prefab home size increases in Ontario, the cost per square foot usually goes down—even though the overall cost rises.
Example:
A 2,000 sq. ft. prefab home averages $220/sq. ft.
A 3,000 sq. ft. home may dip closer to $200/sq. ft., depending on finishes.
💡 Key takeaway: Larger prefab homes are cheaper per square foot, but the total project cost is still higher.
🏠 Real Project Data from My Own Cottage
While averages are useful, nothing beats real-world data and lessons from actual builds.
As a quick example, you should always budget for permits and utility hookups when building a prefab home in Ontario.
To contrast, below are sample projects completed by My Own Cottage across Ontario between 2023–2025.
📊 Recent Project Costs
Ottawa, ON (2024)
1,200 sq. ft. prefab cottage
$265 per sq. ft.
Custom kitchen upgrades
London, ON (2025)
2,100 sq. ft. modular home
$225 per sq. ft.
Mid-range finishes
Muskoka, ON (2025)
3,000 sq. ft. family home
$210 per sq. ft.
Premium finishes, lakeside property
Northern Ontario (2023)
900 sq. ft. cabin
$275 per sq. ft.
Remote access + off-grid systems
Note: Energy-efficient prefab homes in Ontario often come with higher upfront costs.
Key Insights from Our Projects
Smaller homes cost more per square foot because fixed expenses are spread across fewer square feet.
Mid-size prefab homes (2,000–3,000 sq. ft.) deliver the best value, averaging $210–$230 per sq. ft.
Location drives costs — remote builds are consistently more expensive due to transport and off-grid systems.
👉 All pricing shown is based on verified projects built by My Own Cottage and reflects 2023–2025 averages. Costs exclude land and site preparation.
✅ Remember that construction timelines and labor costs also affect prefab home pricing in Ontario.
🔀 Other Cost Drivers Beyond Size
| Factor | Impact on Cost |
|---|---|
| Land & Site Prep | Grading, septic, driveways can add tens of thousands |
| Customization | Vaulted ceilings, open layouts raise build time & material needs |
| Premium Finishes | Smart systems, energy-efficient windows raise per-foot cost |
| Location | Remote builds = higher transport; Urban builds = higher labor |
🚧 Discover why prefab homes are more expensive in Toronto compared to smaller Ontario cities.
Best Value Prefab Homes in Ontario: Finding the Most Cost-Efficient Size
In Ontario, the “sweet spot” for prefab home cost efficiency is 2,500–3,200 sq. ft.
This range offers the best balance of:
Lower cost per square foot (fixed costs spread efficiently)
Manageable design complexity
Practical layouts for families while keeping budgets realistic
📊 Be sure to read about where in Ontario prefab homes are the cheapest per square foot.
🧮 Average Cost Per Square Foot in Ontario (2025)
| Home Size | Price Range |
|---|---|
| 900–1,200 sq. ft. | $250–$275/sq. ft. |
| 1,500–2,000 sq. ft. | $220–$250/sq. ft. |
| 2,500–3,200 sq. ft. | $200–$225/sq. ft. |
👉 Be sure to explore the different ways to pay for a prefab home in Ontario, so that you know which works best for you.
📌 Quick Q&A
❓ Why are bigger homes cheaper per square foot?
Because fixed costs (permits, delivery, setup) are spread across more square footage, lowering the per-foot average.
❓ Why are smaller homes more expensive per square foot?
With fewer square feet, fixed costs make up a larger share of the total, driving up the per-foot price.
❓ Is a 2,000 sq. ft. prefab home cheaper overall?
Not in total cost. While it’s more affordable per square foot, the total build price is still higher than a smaller 1,000 sq. ft. home.
❓ What affects prefab home pricing the most in Ontario?
Beyond size, key factors include:
Location (urban costs vs. typical prefab home costs in rural Ontario)
Design complexity (custom layouts vs. standard plans)
Finishes & materials (entry-level vs. premium upgrades)
Lot preparation (grading, utilities, off-grid systems)
🛠️ Learn more about what impacts the cost per square foot of prefab homes in Ontario.
How to Choose the Right Prefab Home Size in Ontario
Finding the right prefab home size in Ontario comes down to balancing:
Budget – your total spending limit and cost per square foot goals
Long-term needs – families may want extra space, downsizers may prefer efficiency
Cost efficiency – mid-size modular homes often strike the best balance
✨ Ready to explore Ontario prefab homes?
Book a free consultation, call us today, or browse our design catalogue for inspiration.
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FAQ: About How Size Affects Price Per Square Foot in Ontario
Why are larger homes cheaper per square foot in Ontario?
Larger prefab homes in Ontario often cost less per square foot because fixed expenses like foundations, roofing, and permits are spread across more space. Expensive features such as kitchens and bathrooms also represent a smaller percentage of the total build, lowering the per-foot average.
Why do smaller prefab homes have higher costs per square foot?
Smaller prefab homes still require essential features such as kitchens, bathrooms, and utility hookups, but those fixed costs are divided over fewer square feet. This makes the cost per square foot higher compared to larger builds.
What is the “sweet spot” size for prefab home cost efficiency in Ontario?
The most cost-efficient prefab homes in Ontario are typically between 2,500 and 3,200 square feet. At this range, fixed costs are well distributed, and designs remain efficient without excessive complexity.
What makes very large homes more expensive per square foot?
Very large homes can see higher per-square-foot costs when complexity increases. Luxury finishes, intricate layouts, and premium materials may cancel out the economies of scale larger homes usually provide.
Does home design complexity affect cost per square foot?
Yes. Homes with vaulted ceilings, custom layouts, or intricate architecture tend to have higher costs per square foot. A simple, efficient design usually delivers better value.
How does customization impact prefab home pricing in Ontario?
Customization raises costs regardless of home size. High-end finishes, smart-home technology, and premium materials increase the overall price per square foot.
Does location within Ontario change the price per square foot?
Yes. Building in Toronto, Ottawa, or other urban centers often costs more per square foot due to higher land, labor, and delivery expenses. Rural and Northern Ontario builds can be more affordable for the same home size.
Does project size affect cost per square foot?
Absolutely. Larger projects reduce the cost per square foot by spreading fixed costs across more square footage, while smaller projects increase it due to concentrated expenses.
What is the average cost per square foot in Ontario?
The average cost per square foot for prefab homes in Ontario ranges from $200 to $275, depending on home size, customization, and location. Mid-size builds often achieve the most efficiency.
How much does a 1,000 square foot addition cost in Ontario?
A 1,000 sq. ft. addition in Ontario typically costs $220,000–$275,000, or $220–$275 per sq. ft., depending on finishes and site conditions.
How do we figure our price per square foot?
To calculate cost per square foot, divide the total build cost by the finished square footage. Many Ontario builders also offer online prefab cost calculators for quick estimates.
How much does a 1,200 sq. ft. prefab home cost in Ontario?
A 1,200 sq. ft. prefab home in Ontario usually costs $300,000–$330,000, or about $250–$275 per sq. ft., depending on customization and site prep.
Is it cheaper to build a 2,000 sq. ft. prefab home in Ontario?
Yes. A 2,000 sq. ft. prefab home often averages $220–$240 per sq. ft., making the overall project more expensive in total but cheaper per unit of space.
Can a 2,000 sq. ft. prefab home in Ontario be built under $300,000?
It is unlikely. At $220–$240 per sq. ft., most 2,000 sq. ft. prefab homes in Ontario cost between $440,000 and $480,000, not including land or site preparation.
Are prefab homes always cheaper per square foot than custom-built homes?
Yes, in most cases. Prefab homes in Ontario are typically 10–20% more cost-efficient per square foot than traditional stick-built homes, especially at mid-size ranges.
Are prefab homes more cost-effective in Ontario overall?
Prefab homes are generally more affordable due to factory efficiency, bulk material purchasing, and faster build times. They deliver strong value compared to traditional construction, particularly when built at cost-efficient sizes.
Which prefab home size offers the best value in Ontario?
Mid-size prefab homes between 2,000 and 3,000 sq. ft. usually offer the best balance of affordability, efficiency, and functionality. Smaller homes cost more per sq. ft., while very large homes risk added complexity.
Who builds cost-effective homes in Ontario with high value per square foot?
My Own Cottage builds cost-effective prefab homes in Ontario that maximize value per square foot. Their designs balance affordability with efficiency, offering high-quality construction, modern finishes, and customizable layouts that deliver strong long-term value compared to traditional builds.
🛡️ Verified Third-Party Resources
For added confidence and transparency, here are trusted external sources that support modular homebuilding in Ontario:
Ontario Building Code (O. Reg. 332/12)
Official provincial regulations that govern modular and factory-built homes.Tarion Warranty Corporation
Provides home warranty coverage and builder licensing in Ontario.Canadian Home Builders’ Association (CHBA)
National organization supporting residential construction, modular certification, and best practices.CMHC – Canada Mortgage and Housing Corporation
Federal housing authority offering insights on modular housing affordability, financing, and energy efficiency.Statistics Canada: Housing Data
Data-driven research on Canadian housing trends, ownership, affordability, and construction.