Renovate or Relocate? Why Upgrading Your GTA Home Makes Sense

Homeowners in the Greater Toronto Area (GTA) and across Canada are increasingly facing a tough question: Is it better to renovate your current home or relocate to a new one? Several recent surveys and trends suggest that renovating – rather than selling and moving – is becoming the preferred choice for many. In fact, a 2024 national homeowner report found that a whopping 94% of Canadian homeowners plan to stay in their current homes over the next year, and nearly one-quarter of them are planning a renovation during that. Another poll similarly revealed that 60% of homeowners would rather renovate their existing house than put it on the market and move elsewhere cibc.mediaroom.com. This shift toward “staying put” is largely driven by economic realities: with the high cost of living and a volatile housing market, pouring money into your own home can be more appealing – and practical – than trying to upgrade to a different home.

Renovation Over Relocation: A Growing Trend

Home renovation activity has surged in recent years, reflecting homeowners’ desire to improve their spaces instead of trading up in a pricey market. Nearly half of Canadians (49%) are either planning, in the process of, or have recently completed home improvements – a striking figure that underscores how common renovations have become cibc.mediaroom.com. Importantly, the average amount people expect to spend on renovations has almost doubled in just a few years, from about $10,000 in 2019 to roughly $19,000 in 2024 cibc.mediaroom.com. This indicates that not only are more folks renovating, but they’re also investing more heavily in those projects than before.

So, why the big push to renovate? Aside from financial considerations (which we’ll delve into shortly), many homeowners simply want to tailor their current homes to better fit their needs and lifestyle. In the Angus Reid survey, 53% of homeowners said their motivation to renovate was to improve their home’s functionality – essentially to make the space work better for their lifestyles. (In Ontario, an even higher share – 63% – cited functionality as the top reason to) Others renovate to boost property value (about 21% nationally, and as high as 65% in some regions like Manitoba) or to update aging components of their home. The most popular projects tend to be those that really enhance daily living: kitchen remodels, bathroom upgrades, and basement finishing rank among the top renovations. These are the kinds of changes that can make an old house feel new again, greatly increasing comfort and usability without the hassle of moving. Homeowners are often surprised by how much a well-planned custom renovation can change the look and livability of their home – sometimes even unlocking potential in limited square footage that they didn’t realize they had. Our team at Imperio Construction, often notes that their clients are frequently amazed at how reconfiguring an awkward layout or adding smart storage and modern design elements can create an “almost new” home within the same four walls. The truth is, a thoughtfully executed renovation can refresh your entire lifestyle at home, delivering many of the benefits people seek from moving (more space, better functionality, nicer finishes) without leaving your current community.

The True Cost of Moving in the GTA

If you’re considering buying a larger or newer home instead of renovating, it’s important to weigh the full costs of relocating, especially in the GTA’s expensive real estate market. Housing prices in Toronto and surrounding areas remain high – for instance, the City of Toronto’s average resale home price was around $1.1 million in 2023 gta-homes.com. “Trading up” to even a slightly bigger property could easily mean spending hundreds of thousands of dollars on top of what your current home is worth. And that’s just the purchase price difference. On top of that, moving comes with significant transactional costs that are often overlooked. Sellers have to pay realtor commissions and various closing fees; in Ontario, the combined closing costs for a home sale typically run about 8% to 10% of the sale price when you factor in agent commissions, legal fees, and taxes gta-homes.com. In other words, selling a $1,000,000 home might incur on the order of $80,000–$100,000 in costs – money that essentially evaporates in the transaction. Buyers, too, face hefty expenses like land transfer taxes (particularly steep if you’re buying in Toronto, which imposes a double land transfer tax), mortgage default insurance (if your down payment is small), moving services, and so on. When you add everything up, relocating can eat up a huge chunk of equity or savings just in fees and taxes.

Financing a move has also become more challenging due to higher interest rates. Over the past two years, the cost of borrowing money for a mortgage has spiked dramatically. In mid-2023 the Bank of Canada’s key interest rate hit 4.75%, its highest level in 22 years reuters.com, which in turn pushed up mortgage rates to levels not seen in decades. Many homeowners who secured mortgages at 2% or 3% a few years ago are understandably reluctant to sell and then take out a new loan at today’s 5%+ rates – the increase in monthly payments can be staggering. Moreover, the overall cost of living (from groceries to gas to utilities) has been climbing, and people are feeling the squeeze. It’s no surprise that in the FinanceIt/Angus Reid report, 24% of homeowners planning to stay put said the high cost of living has actively stopped them from house-hunting for a new home. In short, moving in the current environment is expensive – not only because home prices are high, but also because you’d forfeit tens of thousands in transaction costs and likely face a more burdensome mortgage. This financial calculus is pushing many GTA families to consider investing those same funds back into their existing home. Rather than paying realtor commissions and land transfer taxes, you could put that money toward a beautiful kitchen expansion or an addition that truly transforms your house.

Maximizing the Home You Have

Another big advantage of renovating vs. relocating is the ability to customize your space exactly to your tastes and needs. When you buy a different house, inevitably there will be compromises – perhaps the layout isn’t quite ideal, or you’ll eventually want to finish that basement or update that 20-year-old bathroom. With a renovation, you call the shots on design and functionality from the get-go. You can prioritize the features that matter most to your family, whether that’s an open-concept living area for better family interaction, a home office for remote work, or a spa-like bathroom retreat for relaxation. It’s your “dream home” vision implemented within your current footprint. And because you’re not trying to squeeze your life into someone else’s old house, you can often get more satisfaction by tailoring your current home rather than moving into a new one that still isn’t “just right.” As our team often puts it, “Think of us as your trusted renovation partner. We’re here to make sure you feel confident and in control from start to finish” – meaning the homeowner stays at the center of every design decision. This guided, collaborative approach can turn your long-time house into the perfect fit for the next chapter of your life.

Renovating can also be a financially savvy investment in many cases. Quality improvements typically raise the market value of your property – sometimes significantly – which can pay off down the road if you do decide to sell. Nationally, about 1 in 5 homeowners (21%) undertake renovations specifically to increase their home’s value. Projects like adding living space (an extra bedroom or bathroom), modernizing kitchens, or improving curb appeal often have a strong return on investment in the GTA’s market. Even if you’re not planning to sell anytime soon, it’s reassuring to know that money spent on a well-done renovation is preserved in your home equity (unlike money spent on moving costs, which is simply gone). In fact, during the recent real estate frenzy, many buyers started to actively prefer move-in-ready, renovated homes – so upgrading your home now could position you well if you ever list it in the future. Of course, the exact return varies by project, and it’s important to renovate wisely (choosing updates that genuinely add function or quality). But generally speaking, transforming an outdated or undersized home into a more spacious, efficient, and beautiful one adds real value – both in dollar terms and in day-to-day enjoyment.

Finally, there’s an intangible but important benefit to staying in your current home: you get to remain in the community and location you love. Uprooting your family for a new house often means changing neighborhoods, maybe pulling kids out of school, or adding to your commute. These disruptions can be stressful. Many GTA homeowners have deep roots in their communities – friends next door, favourite local parks and shops, a sense of familiarity and comfort. Renovating allows you to improve your living conditions without losing those community ties. You don’t have to say goodbye to friendly neighbors or adjust to a new area; you get the best of both worlds by keeping your location and improving your home. This is especially valuable in the GTA where certain neighborhoods are highly coveted and leaving one might mean you can never afford to come back. If you already have a decent lot or a house with “good bones,” renovating can unlock the potential of that property so it serves your needs long-term. At Imperio, we often remind clients that “your dream space” might be closer than you think – it could be hidden in the home you already own, just waiting to be brought to life with the right plan and craftsmanship. And when you do choose to renovate, having a reliable, experienced contractor is key. With over 25 years in the industry (led by a professional engineer), our team at Imperio Construction has developed a transparent process to ensure projects stay on time and on budget. Our goal is to deliver “your dream home, on time and on budget, with a smile” – in other words, to make your renovation journey stress-free and rewarding. The end result is a house that feels brand new and perfectly personalized, without the turmoil of moving out.

Flexible Living: Secondary Suites and Multigenerational Trends

One exciting trend that highlights the benefits of renovating is the rise of secondary suites – such as basement apartments, in-law suites, and garden suites – which add flexibility and future options to your property. Especially in the GTA and Golden Horseshoe, more homeowners are creating these self-contained units either within their existing home or as a small detached building on their lot. In doing so, they effectively gain a “home within a home” that can serve multiple purposes over time. In the short term, a secondary suite can be rented out for extra income, helping offset mortgage costs or recoup renovation expenses. (Rental demand in the region is high; for example, a two-bedroom apartment in Toronto rents for around $2,800–$3,400 per month on average gta-homes.com, so a legal basement apartment or backyard unit could fetch a significant sum.) But the benefit doesn’t stop at rental income. Many families are thinking ahead and designing these suites to be a comfortable abode for aging parents or adult children in the future. This kind of multigenerational living arrangement is becoming more common as our population ages and housing costs make it tough for each generation to afford separate homes. In fact, multigenerational households (where three generations live under one roof) are one of the fastest-growing household types in Canada – over 442,000 multigenerational homes were recorded in 2021 (housing 2.4 million people), a 21% increase from a decade earlier vanierinstitute.ca. There’s a clear desire among families to stay together and support each other, and renovating your home to create an in-law suite or coach house is a practical way to accomplish that.

A 3D Render of a garden suite we designed in Oakville

Garden suites in particular have gotten a lot of attention recently. These are small detached dwellings built in the backyard of a house (sometimes also called coach houses or backyard suites). Thanks to recent changes in Ontario housing policy, it’s now legal “as of right” in many areas to build up to three units on a residential lot – for example, one in the main house (primary residence), one basement or in-house apartment, and one external accessory unit like a garden suite. Municipalities like Toronto have embraced this gentle density: after allowing laneway houses a few years ago, the city moved to permit garden suites in 2022, meaning you don’t need special rezoning if your project meets the city’s garden suite bylaws. Other cities around the GTA and southern Ontario are also exploring and encouraging these types of additional dwelling units (ADUs). For instance, Mississauga and Kitchener have been developing policies to support multi-unit ADUs and backyard homes as a way to increase housing supply and affordability. The upshot is that homeowners today have more opportunity than ever to create a secondary living space on their property – whether by finishing a basement with a separate entrance or constructing a standalone suite out back.

From a lifestyle perspective, having a secondary unit offers remarkable flexibility. Many of our clients have discovered that what starts as a rental suite can later become a perfect home for an elderly parent, allowing mom or dad to live independently but just steps away from family. This setup can spare everyone the difficult (and expensive) decision of moving a parent into a retirement residence. It’s worth noting that most seniors strongly prefer to age at home: a 2024 study found 91% of Canadian older adults would rather stay in a home setting than move to an institution or nursing home affinityhealth.ca.

However, living completely alone in a big house can be isolating or impractical for some seniors, which is why moving in with family – or into a suite on the family’s property – is an ideal middle ground. The financial implications are significant too. Private retirement homes in the GTA can cost anywhere from $4,000 to $7,000 (or more) per month for accommodation and basic care services affinityhealth.ca. By contrast, building a garden suite for an aging parent is often a one-time investment that not only provides them housing, but also creates a valuable asset on your property. We’ve seen scenarios where, for example, a family realized that buying a condo for Mom nearby would cost nearly $1 million, so instead they built a beautiful 1-bedroom garden suite in their backyard for roughly half that amount torontolife.com. In the interim before the parent moves in, that suite can be rented to a tenant or used as a guesthouse or home office, so it’s never sitting idle. Down the road, it could even serve as a residence for the homeowners themselves (for instance, a couple might decide to downsize into the garden suite once their kids are grown, and rent out the main house for income during retirement). This kind of forward-thinking use of your property is a win-win: it creates immediate versatility and long-term security.

Crucially, planning and executing such projects does require navigating building codes, permits, and design challenges – which is where having the right contractor partner is invaluable. We have experience designing legal second units and working within local regulations, so clients can be confident their basement apartment or garden suite is done safely and up to code. The company has observed that incorporating multi-generational features doesn’t just benefit the family adding the suite; it also contributes to the community by gently increasing housing supply. It’s housing innovation at the micro level – one backyard at a time – helping address the broader affordability issues. As one industry analysis put it, Ontario’s embrace of ADUs and flexible home design is “reshaping the physical and socio-economic fabric” of communities, providing more options for different family types and stages of life roomdb.ca. In new construction, we’re even seeing flexible, multi-generational layouts become a selling point – for example, houses with main-floor bedroom suites that could be for an elder, or rough-ins that make it easy to add a second unit later. For homeowners of existing houses, renovating to add these features can similarly future-proof your home. You’re essentially creating a home that can adapt with you: rent it now, welcome family later, and never be forced out of your neighborhood due to life changes.

Conclusion: Renovate to Stay, and Stay Happily

When weighing the choice to renovate or relocate in the GTA, it’s clear that renovating offers some compelling advantages. Financially, you avoid the steep premiums of trading up in an expensive market and the transactional costs of moving – and instead invest that money into assets (improvements) that enhance your home’s value. Practically, you get to customize your living space to perfectly suit your needs, rather than hoping to find an existing house that checks every box. Emotionally, you maintain stability by staying in the community you know and love, while enjoying a refreshed home that makes you fall in love with it all over again. And with options like secondary suites, you can create a home that not only serves you today but can flex to accommodate your family’s tomorrow – be it giving your parents a place to age in comfort near loved ones, or providing yourself with rental income and a retirement plan.

Of course, every situation is unique. There are times when relocating is the right call (for example, if a move brings you significantly closer to work or family, or if your current house simply cannot be adapted to your needs). But for many GTA homeowners, the data and trends suggest “love it, don’t list it” is the prevailing wisdom of the moment. As interest rates and housing prices have made moving less enticing, renovation activity has boomed and homeowners are achieving remarkable results in transforming their spaces. The key to a successful renovation is careful planning and partnering with professionals who prioritize your vision and peace of mind. “

We understand the stress of hiring a contractor… you want someone who respects your vision, communicates clearly, and values your peace of mind,”.

With the right guide, the renovation process can be smooth and even enjoyable – not the horror story of delays and surprises that people fear. The end product is your dream home, created right where you are.

In the end, whether you renovate or relocate comes down to what will improve your quality of life and financial well-being. But given the current landscape in the GTA, renovating your home is an option well worth considering – and increasingly, it’s the option that savvy homeowners are choosing. By leveraging the space you already have, and perhaps expanding it in creative ways, you can craft a living environment that meets your family’s needs now and for years to come. Instead of uprooting, you nurture the roots you’ve already planted. And as many have found, when you renovate smartly, you’re not just updating a house – you’re recommitting to the place you call home, with all the comfort and stability that brings.