Know Why Most Designs Never Get Built – A Toronto Renovation Reality Check
Renovating your Toronto home can be an exciting and rewarding journey—until the blueprint you’ve fallen in love with turns out to be wildly over budget. Did you know that over 80% of home designs never get built? Shocking, right? The reason is simpler than you might think: designs often don’t align with the budget.
In this installment of our 7-Step Guide to Starting Your Toronto Home Renovation, we’ll uncover why this happens and share practical steps to ensure your renovation project doesn’t become another statistic.
Why Do So Many Designs Fail?
- Architects Focus on Vision, Not Cost
When you sit down with an architect, their job is to create a design based on your vision—not your budget. While most architects discuss costs during the briefing stage, their expertise lies in aesthetics, structure, and design—not current construction costs. Unfortunately, this means that many homeowners move forward with plans that are financially unrealistic.
In fact, architectural cost estimates can be off by 50–300%, depending on the scope and complexity of the project. Architects may base their numbers on outdated data or general industry averages rather than the real-time pricing of materials and skilled labor in your area. This gap can lead to homeowners approving beautiful designs that, when priced by a contractor, turn out to be far beyond their budget.
Example: Sarah and Mike dreamed of a modern extension to their High Park home. Their architect estimated the cost at $300,000, and they excitedly approved the design. However, when they approached builders for quotes, the actual cost came in at $500,000—a shocking $200,000 difference. Devastated, they had to go back to the drawing board, revising their plans and delaying their project by months. In the process, they wasted thousands on redesign fees, permits, and lost time.
Toronto’s Unique Market Dynamics and how they impact the cost of construction
Labour costs are a significant factor in the overall cost of construction in Toronto. Two key dynamics drive these high costs: a skilled labour shortage in the trades industry and a high cost of living in the GTA.
Toronto, like much of Canada, is facing a shortage of skilled tradespeople. This is due to several factors, including an aging workforce, fewer young workers entering the trades, and increased demand for construction due to population growth and urban development. As a result, competition for skilled workers is intense, driving up wages. Contractors must offer competitive pay to attract and retain qualified tradespeople, which directly impacts the cost of building a home.
Toronto consistently ranks as one of the most expensive cities in Canada, with high housing costs, rising rental prices, and increasing day-to-day expenses. Tradespeople working in the city need wages that allow them to afford housing and maintain a reasonable standard of living. Many skilled workers have been pushed to the suburbs, leading to longer commutes, which further influences wage expectations. To maintain a fair and livable income for workers, these increased labour costs must be factored into the overall price of construction projects.
Ultimately, these labour-related cost pressures are passed on to homeowners looking to build or renovate. While some homeowners may be surprised by the cost of labour, it reflects the reality of ensuring skilled workers are fairly compensated in a competitive market. Cutting corners on labour costs can lead to lower-quality work, project delays, or difficulties in finding reliable tradespeople, which can ultimately cost more in the long run.
Without an accurate, Toronto-specific budget, even well-intentioned plans can derail your project.
To avoid this costly mistake, homeowners should involve an experienced builder early in the design process. A builder can provide real-world cost insights and value-engineering suggestions, ensuring the final design aligns with both vision and budget.
- No Early Builder Involvement
Many homeowners assume that the natural order of a construction project is to design first, then hire a builder. However, this approach often leads to significant budget overruns and costly redesigns. While architects focus on the creative and functional aspects of a home, builders bring practical expertise in material costs, labour availability, and construction methods—factors that heavily influence the feasibility of a design.
Without a builder’s input early in the process, homeowners may unknowingly approve plans that require expensive materials, complex structural elements, or custom fabrication that far exceed their budget. By the time they bring the design to a builder for pricing, they may discover that key features need to be scaled back, altered, or removed altogether—forcing them to go through another round of design revisions, delaying their project and adding unnecessary expenses.
For example, a homeowner may request floor-to-ceiling windows, assuming they fit within their budget, only to learn later that the custom framing and structural reinforcements needed to support them push the cost well beyond expectations. A builder involved from the start could suggest cost-effective alternatives, such as adjusting window sizes or choosing different materials, without sacrificing the overall vision.
Bringing a builder into the conversation early allows for value engineering, where design decisions are made with real-world costs in mind. This proactive collaboration ensures that homeowners get a home that aligns with both their aesthetic vision and financial reality—without the frustration of having to start over halfway through the process.
The Simple Fix: Involve Your Builder Early
Many homeowners assume they need a completed design before bringing a builder into the process. In reality, early collaboration between architects and builders is the key to a smoother, more cost-effective project. When builders join the conversation from day one, they provide insights that go beyond design—helping homeowners make informed decisions before committing to a plan that may not align with their budget.
Why Early Collaboration Matters
Having a builder involved early ensures that your design is not just beautiful on paper but also realistic to build. Here’s how their expertise adds value:
- Realistic cost assessments – Builders have firsthand knowledge of real-time material and labour costs, which change based on supply chain fluctuations and market demand. Their early input helps prevent sticker shock when it’s time to price out the project.
- Practical design guidance – Some architectural features may look great but require complex structural reinforcements or specialized trades, driving up costs. Builders can flag these challenges early, ensuring that design choices align with construction feasibility.
- Value-engineering suggestions – Builders can recommend cost-effective alternatives without compromising quality. Whether it’s choosing different materials, adjusting dimensions, or rethinking certain design elements, they help homeowners get the most out of their budget.
Case Study: The Thompson Family’s Sunroom
The Thompson family wanted to add a sunroom to their Beaches home, envisioning a bright, airy space with an all-glass structure. Their architect designed a beautiful concept—but when they consulted a builder early in the process, they discovered the glass enclosure would push them $75,000 over budget due to the need for custom glazing, reinforced framing, and additional climate control.
Instead of scrapping the project or going over budget, the builder proposed an alternative solution: a well-insulated structure with high-quality skylights and expansive windows. This design maintained the bright, open feel the Thompsons wanted while staying within their budget. Thanks to early builder involvement, they avoided costly redesigns and were able to move forward with a practical, stunning space.
The Bottom Line
Involving a builder early saves time, money, and frustration. It ensures that every design decision is made with real-world construction costs in mind, reducing the risk of major adjustments down the road. Instead of designing first and scrambling to adjust later, homeowners should think of the process as a collaborative effort—where architects, builders, and homeowners work together from the start to create a well-designed, financially achievable home.
Expert Tips for Toronto Homeowners
Hire Builders Offering Pre-Construction Services
Some Toronto builders provide budget consultations or pre-construction contracts before construction starts. This service costs significantly less than an architect’s fees and can prevent expensive plan revisions.
A budget consultation with a builder usually involves the following:
- The builder will do an in-person visit to your home and have you walk them through your renovation vision
- If you have preliminary plans or floor layouts drawn, they will review them
- The builder will provide a high level budget range of the cost of construction. The contractor should be able to identify which portions of your renovation would be the largest drivers of the costs.
- There is usually a nominal site visit fee of $250-$500 for this consultation.
A Pre-Construction Services Contract is a more detailed process and runs parallel to your design work with the architect. If you are hiring a designer, the designer should also be involved in this stage. As final design decisions and material selections are made, the builder is pricing out actual costs of actual materials that are going into your project. This allows for a very confident budget or price going into the renovation. Pre-Construction services can range from $1000 – $10,000 depending on the size & complexity of the project and the hours involved.
- Balance Vision with Practicality Dream big—but listen to your builder’s suggestions on materials and layout adjustments to keep costs in check.
The Takeaway: Collaboration is Key
Designs fail when creativity isn’t paired with cost-conscious planning. Involving your builder early ensures your dream home can move from concept to reality—without financial heartbreak.
Ready to Turn Your Vision into Reality? Call Glenaden Homes today at 416-365-2075or visit https://go.glenadenhomes.com/home-page352144 for expert guidance. Let’s build a design that works—for your lifestyle and your budget.
Glenaden Homes offers pre-construction services and fixed price contracts for those clients who sign a pre-construction contract agreement.
