The standard advice for controlling renovation costs is to get three quotes. It is reasonable advice and it addresses the smaller variable.
What actually moved
Material costs are running above pre-2020 levels because of supply-chain pressure and tariffs on imported building products. Lumber, roofing materials and imported tile have seen significant increases, with roofing tariffs from 10% to 60%. Cabinets, steel and appliances carry exposure.
Labour is not tariff-exposed. Neither is design work, permitting or project management.
This produces a conclusion that runs against instinct: paying for better planning is relatively cheaper than it used to be, because it saves in the expensive category by spending in the cheaper one.
Where scope decisions save real money
Not moving plumbing or electrical. Keeping fixtures in place avoids both labour and materials, and it avoids the discoveries that generate change orders.
Reusing structure. Cabinet refacing rather than replacement avoids the tariff-exposed category almost entirely while preserving most of the visual result.
Decoupling appliance purchase. There is no requirement to buy appliances on the contractor’s schedule. Buying them separately lets you shop sales in an exposed category.
Domestic substitution on tile. Imported tile is named specifically; domestic options are not subject to the same exposure.
The Toronto numbers for context
Renovation costs run $280–$400 per square foot, with gut jobs on older homes at $450–$550+. Kitchens run $20,000 to $150,000+; bathrooms $15,000 to $70,000+.
Those spreads are mostly finish-level and scope decisions, not contractor variation. The gap between a well-scoped project and a poorly scoped one is larger than the gap between contractors.
The costs outside the quote
In Ontario, 13% HST applies to labour and materials on most residential renovations — over $52,000 on a $400,000 project. Permits typically run $400 to $2,000+. The Bank of Canada rate environment affects anything financed.
A per-square-foot estimate excludes all of it.
The sequence that works
Establish scope. Identify which line items sit in tariff-exposed categories. Decide where substitution preserves the outcome. Then get quotes — against a defined scope, so the comparison is meaningful.
Projects that go badly in a high-material-cost environment usually started with a number rather than a scope.
Sources
- Maserat Developments — Home Renovation Costs Toronto 2026
- Senso Design — Home Renovation Cost in Toronto (2026)
- Reno Quotes — Canada renovation cost guide 2026