How To Tell If You Should Renovate Or Knock Down & Rebuild

Client Question:"Our home is outdated and needs serious work. Should we renovate or just knock it down and build a new one?"

At SLG Contracting, we hear this question all the time—and the answer depends on your goals, your budget, and the condition of your home. In this blog, we’ll break down key factors that help homeowners decide whether to renovate their current space or start fresh with a brand-new custom home.

1. Assess The Condition Of Your Current Home

If your home has structural issues—think foundation cracks, sagging roofs, outdated wiring, or water damage—renovating could cost as much (or more) than rebuilding. A thorough inspection by a professional can reveal hidden problems that might tip the scale toward demolition.

Key signs renovation might not be worth it:

• Major foundation issues

• Outdated or unsafe electrical and plumbing

• Extensive mold or rot

• Poor layout that can't be easily changed

  
  

2. Look At The Costs: Renovation vs. Rebuild

Renovations can be more affordable if your home is in decent shape and just needs cosmetic upgrades or minor layout changes. However, renovation costs can quickly snowball if unexpected issues arise.

On average in Ontario:

• Major home renovations: $200–$400+ per sq ft

• Knock down & rebuild: $250–$500+ per sq ft (but includes everything brand new)

While rebuilding may seem more expensive upfront, you’ll often save in the long run with better energy efficiency, fewer repairs, and a layout tailored to your needs.

3. Does Your Lot Have Rebuild Potential?

Some neighborhoods or municipalities have zoning rules that restrict rebuilding or limit what you can build. Before deciding, check:

• Zoning bylaws

• Heritage designations

• Setback requirements

• 
  

Good news: SLG Contracting can help you navigate these rules and determine what’s possible for your property.

4. Consider Your Future Plans

Ask yourself: Do I want to stay in this home for the long haul, or am I thinking about resale value?

• Renovation might make sense if you’re planning to sell in a few years and just want to improve market value.

• Rebuilding gives you a custom home tailored for your lifestyle and long-term comfort—and often boosts property value significantly in sought-after areas.

  
  

5. Energy Efficiency & Modern Features

Older homes can be expensive to heat, cool, and maintain. With a new build, you can:

• Install energy-efficient windows, insulation, HVAC

• Include smart home technology

• Design a functional, open layout with modern finishes

This not only saves money over time but increases comfort and livability.

Final Thoughts: Renovate or Rebuild?

Here’s a quick cheat sheet:

Choose Renovation If...	Choose Rebuild If...
Structure is sound	Major structural issues
Budget is tight	Want custom features
Want to preserve charm	Need energy efficiency
Minor layout changes	Poor layout, hard to fix
Short-term ownership	Long-term investment

Talk To SLG Contracting Before You Decide

At SLG Contracting, we specialize in major renovations and custom home builds across Ontario. Whether you’re leaning toward renovating or starting from scratch, we’ll help you understand your options, the costs, and the potential of your property—so you can make the best choice for your home and your future.

Need help deciding?Contact SLG Contracting today for a consultation. Let’s bring your dream home to life—whether that means reimagining your current space or starting fresh.