Average Cost to Install a Small Prefab Home in Ontario (2025 Guide)
📅 Last updated: September 7th, 2025
✍️ Written by prefab building specialists at My Own Cottage
Installing a small prefab home in Ontario typically costs between $150,000 and $250,000 CAD.
The final price depends on factors such as:
Home size and square footage
Design choices and customization
Site conditions (terrain, soil, and accessibility)
Finishing details and upgrades
On average, prefab homes in Ontario cost $200–$300 per square foot, but this figure often excludes installation costs.
When you factor in land preparation, foundation, delivery, permits, and utility hookups, the total can rise by 30–50% above the base price.
👉 For detailed pricing on specific models, see our pillar guide on small prefab homes Ontario with prices.
📈 Why Prefab Homes Are Growing in Ontario
Ontario residents are increasingly choosing prefab homes due to:
⏱️ Faster construction timelines
💰 Lower costs vs. traditional builds
🌱 Improved energy efficiency
🛠️ Customizability and design flexibility
Prefab homes are ideal for rural getaways, in-law suites, or cost-efficient urban dwellings.
Ontario Prefab Home Installation Prices (2025)
The prefab home installation cost Ontario 2025 buyers face is made up of two main components:
Base price of the home itself (factory-built modules).
Installation and site work costs, which vary depending on land conditions and home type.
Tiny prefab homes (under 500 sq. ft.): $90,000–$140,000 installed. For those comparing modular kits, see our breakdown of small prefab home kit costs in Ontario.
Small cottages (600–900 sq. ft.): $150,000–$220,000 installed.
1–2 bedroom bungalow-style prefab homes: $180,000–$250,000 installed.
For more detailed comparisons, see our full guide on prefab homes Ontario prices.
🔍 How Much Does It Cost to Install a Small Prefab Home in Ontario?
The price of a prefab home in Ontario depends not just on square footage, but also on style, finishes, and the often-overlooked installation costs.
💡 Key takeaway: Turnkey pricing is typically one-third to one-half higher than the sticker price.
Base Price vs. Turnkey Price Explained
Base prefab price includes only the factory-built modules (walls, roof, and shell).
Turnkey installation includes:
Site preparation & foundation
Delivery & crane setup
Permits & inspections
Utility hookups & final finishes
💡 Key takeaway: Most Ontario homeowners spend significantly more than the factory unit price once foundation, permits, and utility hookups are included.
Sample Turnkey Budget for a Small Prefab Home
| Category | Estimated Cost (CAD) | What’s Included |
|---|---|---|
| Base Prefab Unit | $150,000 | Factory-built modules |
| Site Prep & Foundation | $40,000 | Land clearing, excavation, slab/crawlspace/basement |
| Delivery & Installation | $15,000 | Transport, crane setup, assembly |
| Permits & Inspections | $5,000 | Municipal permits, zoning compliance |
| Utilities & Customization | $20,000 | Hydro, septic, water, plus upgrades (windows, insulation, solar, smart tech) |
| Total Turnkey Cost | $230,000 | Move-in ready |
For entry-level buyers, our guide to starter prefab homes in Ontario is an excellent place to begin.
Key Factors Affecting Prefab Home Installation Costs
Foundation Type
Slab-on-grade: Lowest cost
Crawl space: Medium cost
Full basement: Highest cost (adds living/storage space)
Site Preparation
Land clearing & excavation: $5,000–$15,000
Difficult terrain (rocky, sloped, or forested) = higher costs
Utility Connections
Septic system: $10,000–$25,000
Hydro + Internet: $5,000–$15,000
Permits & Regulations
Permit fees: $2,000–$5,000
Local zoning rules may affect placement, access, and setbacks
Customization & Upgrades
Triple-pane energy-efficient windows
Solar panels for off-grid living
Smart home technology
Advanced insulation packages
💰 Real Prefab Home Budgets & Client Projects in Ontario
Prefab installation costs vary, but seeing realistic budgets and actual client projects can help you plan more accurately.
📊 Sample Turnkey Budget
Here’s a typical breakdown for a small prefab home in Ontario:
| Category | Cost (CAD) |
|---|---|
| Base Prefab Unit | $150,000 |
| Site Prep & Foundation | $40,000 |
| Delivery & Installation | $15,000 |
| Permits & Inspections | $5,000 |
| Utilities & Customization | $20,000 |
✅ Total Estimated Turnkey Cost: $230,000
🏡 Real Client Projects in Ontario
Northern Prefab Granny Suite Cabin
Size: 650 sq. ft.
Foundation: Crawl space
Final Cost: $185,000
Build Time: 3 months
GTA Duplex Flat
Size: 800 sq. ft. prefab duplex
Highlights: Premium finishes + urban excavation
Final Cost: $240,000
Off-Grid Tiny Home (Muskoka)
Size: 450 sq. ft.
Features: Solar power, septic, off-grid connectivity
Final Cost: $160,000
💬 Quick Q&A: Small Prefab Installations in Ontario
What’s included in the base prefab price?
Only the factory-built unit (walls, roof, structure). It does not cover land prep, foundation, delivery, permits, or utilities.
What is the “turnkey” cost?
Turnkey pricing includes everything required to move in — usually $200,000–$250,000 for small prefab homes in Ontario.
Why do smaller prefab homes cost more per sq. ft.?
Fixed costs (delivery, crane setup, permits) are spread over fewer square feet, which raises the cost per sq. ft.
Are prefab homes cheaper than traditional builds?
Yes — typically 10–20% more affordable due to reduced labor, fewer delays, and less material waste.
How long does installation take?
Once permits and site prep are done, prefab modules can be installed in a few days. Total project timeline: 2–6 months.
How to Budget Smartly
While the cost of prefab homes in Ontario are attractive for homebuyers, it’s still important to follow these steps to avoid financial surprises:
Get multiple quotes from at least 2–3 licensed prefab builders.
Use a prefab mortgage calculator to estimate realistic payments.
Add a 10–15% buffer for unexpected costs (soil, delays, etc.).
Explore CMHC financing options for prefab construction.
Decide between modular, panelized, or full custom builds.
Accessory & Secondary Units
Prefab homes are ideal not just for cottages but also for backyard living spaces.
Ontario residents are increasingly adding secondary suite prefab homes or laneway prefab homes as flexible urban housing solutions.
If you’re considering garage builds, it’s worth exploring whether prefab garages are available in Ontario, as these can complement a smaller prefab house or suite.
🔮 Prefab Housing Trends in 2025 & Beyond
Installation costs may rise with land development and permit fees.
Off-grid and energy-efficient units are in high demand.
New prefab innovations are reducing build times and cost variability.
🔗 For a full breakdown of prefab models and financing insights, visit our guide to small prefab homes Ontario with prices.
What to Expect With Prefab Installation Costs in 2025 and Beyond
The average cost to install a prefab home in Ontario sits between $150,000 and $250,000, with variables like land prep, permits, and finishes impacting the final figure.
As Ontario housing demand grows, prefab homes remain an attractive option for affordability, speed, and sustainability.
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FAQ: The Average Price to Install a Small Prefab Home in Ontario
What’s the average price to install a small prefab home in Ontario?
The installation cost for a small prefab home in Ontario typically ranges from $80,000 to $150,000 for the base unit, while the full turnkey price, including site prep, foundation, permits, utilities, and setup, often exceeds $200,000.
What is included in the base price of a prefab home?
The base price covers just the factory-built modules. It does not include crucial extras like land preparation, foundation, transport, permits, utility hookups, or installation.
Why do smaller prefab homes cost more per square foot?
Smaller units (e.g., 400–500 sq ft) often cost $95,000–$125,000, with higher per-square-foot rates—fixed delivery and setup costs are spread over less space, increasing the overall unit cost.
What factors affect prefab home installation costs in Ontario?
Key cost drivers include:
Size and square footage
Level of customization and finishes
Land clearing, grading, and foundation type
Permits and inspections
Utility connections (water, hydro, septic)
Delivery and assembly fees
What is the difference between base cost and turnkey cost?
The base cost is for the prefab modules alone. The turnkey cost includes everything required to move in—site work, foundation, delivery, installation, and utilities—typically amounting to 30–50% more than the base price.
How much does it cost to deliver and install a prefab home in Ontario?
Delivery and installation costs typically range from $20,000 to $40,000, depending on factors like distance, crane access, and contractor rates.
How long does it take to install a prefab home in Ontario?
Once permits and site prep are done, the on-site installation usually takes 2–6 months, with the actual module placement completed in just a few days.
Are prefab homes cheaper than traditional homes in Ontario?
Yes—prefab homes are generally 10–20% less expensive than traditional builds, thanks to reduced labor, controlled factory production, and faster timelines, although customization and site costs can influence the final price.
Who Installs Prefab Homes in Ontario at Affordable Prices?
My Own Cottage is a trusted Ontario prefab home builder known for delivering affordable, turnkey prefab home installations. They handle everything from design and factory construction to delivery, site preparation, and final setup, making the process seamless for homeowners across the province.
🛡️ 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.