Basements are versatile spaces that can be customised to suit your household needs. Whether it’s adding an extra bedroom, kitchen, or theatre, a renovated basement adds utility and value to your home. Your budget will inform the scope of the project, but before you can set your budget, you’ll first need to have an idea of what the average basement finishing costs are. This will help you determine where you can afford to splurge and where you can cut down costs.
In this post, we’ll discuss the average basement finishing costs in Ontario in 2025. Please note that these are average prices based on research at the time of writing.
One of the most common mistakes people make when they’re renovating is not doing their homework in terms of budgeting. When you’re contacting renovation companies for quotes, you should have some expectations regarding renovation expenses. Therefore, before you determine your budget, it’s good to have a general idea about the cost to renovate a basement. It’s the best way to narrow down your options and decide where you can cut corners.
What is the Most Expensive Part About Basement Finishing in Ontario?
- Labour – This includes electrical, plumbing, and HVAC upgrades. The size of your basement and the complexity of the design will also determine the amount of labour needed
- Plumbing – Plumbing alone makes up a significant portion of the basement finishing labour because of the expertise and materials needed to redirect the plumbing system.
- Flooring and Walls – The cost of the flooring and walls will vary depending on the materials you choose and the size of your basement. You may need to make structural changes like adding walls or lowering floors. On average, flooring and walls make up about 15% of your total cost.
- Waterproofing – Your basement will need good external waterproofing. The costs will vary depending on the waterproofing measures that are already in place and any existing damage that needs addressing.
- Egress window – An egress or emergency exit window will need to be installed. The cost will depend on whether you use a pre-made or custom model. Typically, you can expect to spend between $3,000 and $3,500.
Average Basement Renovation Costs by Size
The biggest factor in determining the final cost of finishing your basement is the size of your basement. It impacts the cost of labour and materials, so it can range anywhere from about $20,000 to $90,000. You can see the price estimates based on square footage in the table below.
| Square Footage | Cost Range |
|---|---|
| 400–500 sq. ft. | $20,000 – $26,500 |
| 500–600 sq. ft. | $25,500 – $31,000 |
| 600–700 sq. ft. | $30,000 – $36,000 |
| 700–800 sq. ft. | $35,000 – $41,000 |
| 800–900 sq. ft. | $40,000 – $46,000 |
| 1000–1400 sq. ft. | $50,000 – $90,000 |
Even within square footage categories, the costs can vary quite greatly. This is due to a combination of the basement’s use, repairs, quality of the materials, and other factors.
Basement Renovation Cost Factors
Although the general costs for basement renovations are about the same in a certain city, many factors can drastically change the total price.
- Quality of material
- Labour and installation
- The size of the basement
- The condition of your basement
- Basement upgrades
- The complexity of renovation design
The cost to renovate a basement can range depending on the scale of the project and the materials used. The average basement renovation cost ranges between $35-$55 per square foot. To put things into perspective, if your basement is 1000 square feet, then it would likely cost $35,000-$55,000 to renovate your basement. Of course, there are always other factors to consider, such as the cost of materials and basement upgrades you’d like to install.
Another essential factor to consider is the additions you are implementing into your new basement.
Building a bathroom does not cost the same as installing a kitchen. Each room adds up to a different price, and it all depends on the scale of each project.
Bathrooms are something that everyone will likely include in their basement renovation. Before installing the bathroom, you want to decide on the size and scale of things. Do you want a more spacious bathroom with a tub or shower, or do you prefer a more simple half-bath? Other factors that impact the overall cost include plumbing, materials, and electrical. Once it’s all said and done installing a basement bathroom will likely run you between $10,000-$15,000.
Cost Breakdown of Basement Renovations in Ontario
The average costs of basement renovations in Toronto range between $45 to $95 per square foot. So how much does it cost to finish a 1,000 sq ft basement? Anywhere from $45,000 to $95,000. There are however several factors that affect the cost of basement renos, including:
Additional Costs to Consider
Beyond the construction of the actual rooms of the basement, lie additional fees that also factor into the basement renovation costs. These factors include:
- Building permits ($3,500 – $5,000) – The necessary permits are for excavation, demolition, framing, insulation, and plumbing.
- Foundation repairs (up to $10,000) – There may be some foundation issues that need repairing like cracks, water damage, soil movement, poor drainage, tree roots, and poor construction.
- Waterproofing (up to $7,000) – Waterproofing measures include excavation, repairs, landscaping, drainage systems, waterproof coatings, and sump pump installation.
Not all of these factors are essential, but they are something to consider depending on your basement’s condition. The following table shows a clear breakdown of basement renovation costs.
| Basement Renovation Step | Average Price |
| Framing | $15 – $30 per linear foot |
| Plumbing | $1,500 – $15,000+ per fixture |
| Drywall Installation | $1.5 – $3 per square foot |
| Drop ceiling | $2 – $6 per square foot |
| Vinyl flooring | $1 – $8 per square foot |
| Porcelain or ceramic tile flooring | $5 – $20 per square foot |
| Engineered wood flooring | $3 – $5 per square foot |
| Carpet flooring | $7 – $12 per square foot |
| Painting | $3 – $7 per square foot |
| Ceiling sheet paneling | $12 – $30 per panel |
| Tongue and wood ceiling | $1 – $3 per square foot |
| Electrical | $50 – $100 per hour |
| Building permit | $300 – $1,900 |
| Foundation repairs | up to $10,000 |
| Waterproofing | up to $7,000 |
Many basement renovation contractors offer financing plans for your renovation projects. Therefore, if you’re overwhelmed with the costs of renovating a basement, it’s good to do your research in advance just to learn about your payment options.
How to Save on Basement Renovation Costs
When looking at the areas to cut costs on, don’t compromise on essentials such as circulation, heating and cooling, insulation, lighting, plumbing, and waterproofing. To reduce costs, consider using prefabricated materials rather than customized ones and keep luxurious finishes to a minimum. Also, try to work with the existing layout and limit the number of structural changes you make.
It might be wise to spend more on some renovation costs for long-term savings and reduced environmental impact. This includes energy-efficient insulation, lighting, HVAC systems, water consumption, and materials.
More than Cosmetics – What to Consider with Proper Basement Finishing
When finishing a basement, it’s easy to get lost in the fun of exploring design ideas. However, it is important not to neglect the following key aspects of basement finishing:
- Insulation – Your walls will need proper insulation to help with your basement’s temperature regulation.
- Lighting – Plan for your lighting ahead of time. Lighting needs to meet your practical and aesthetic needs. Your options include traditional ceiling lights, recessed lights, and many more.
- Interior waterproofing – This includes various coatings and sealants that prevent damage to your basement from interior leaks.
- Windows and ventilation – Adding windows improves ventilation and natural lighting, which will cut down on artificial lighting and heating/cooling costs.
- Heating and cooling systems – Upgrade your existing HVAC system to a more energy-efficient model to save on utilities.
FAQs about Basement Renovation Costs
Yes, it does indeed. The average basement renovation can have up to a 70% return on investment. Potential buyers are willing to pay more for a home with a finished basement because all the added benefits that come with the additional living space.
A basement between 500-600 square feet will likely cost $17,500 – $21,000 to finish.
Harmony Basements takes about 4 to 6 weeks to finish or renovate your basement.
In addition to an increased home value, your finished basement will add functionality to your home. If you turn it into a rental space, you can also have potential rental income.
It can range between $5,000 and $10,000, depending on the size of your basement and whether there’s the need for repairs and drainage systems.
You can finish your basement and turn it into a bar or cellar, gym, living room, game room (for children or adults), theatre, entertainment lounge, library, office, studio, music room, kitchen, laundry room, spa bathroom, or in-law or guest suite.
No. House listings separate the basement’s use and square footage from the rest of the house.
In conclusion, the cost to renovate your basement will depend on the scope of work, the materials you install, and the contracting company you hire. All in all, setting a clear budget for your basement renovation project will make the process much easier.
Communicate with your renovation contractor about what you’re comfortable spending. As a result, the renovation fees do not go over your budget, but you still get the best quality for the resources available.
Contact us if you have further questions!
