Homebuilders across Canada are feeling the pinch as construction costs remain high in many urban centres. But if you’re willing to look beyond the big cities, there are still places where building a home is surprisingly affordable. From smaller communities in the Prairies to growing towns in Atlantic Canada, some regions are offering significantly lower land prices, builder fees, and material costs. We’ve compiled a list of the cheapest canadian cities to build a home in 2025 to help you make an informed decision.
While city-specific construction costs aren’t always published (exact per-square-foot data isn’t publicly released for smaller markets), the figures in this article are based on available provincial averages, regional industry reports, and current housing trends. The numbers are approximate, but the cities are known for offering better value compared to places like Toronto or Vancouver.
Quick look:
Here’s a snapshot of the most affordable cities in Canada and their average building costs per square foot:
- Moncton, NB: $140 to $160
- Trois-Rivières, QC: $150
- Winnipeg, MB: $160
- Saint John, NB: $140 to $155
- Regina, SK: $150 to $165
- Thunder Bay, ON: $155 to $170
- Saguenay, QC: $145 to $160
- Lethbridge, AB: $150 to $165
- Charlottetown, PEI: $160
9 of the cheapest Canadian cities to build in
1. Moncton, New Brunswick
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in southeastern New Brunswick, Moncton is one of Atlantic Canada’s fastest-growing cities. With a metro population of just over 160,000, it’s a regional hub for business, education, and healthcare, offering a mix of urban amenities and small-town charm.
Moncton is one of the cheapest Canadian cities to build a home in Canada right now. Land is still reasonably priced, and there’s good access to local trades and building materials. On average, it costs between $140 and $160 per square foot to build here in 2025. The city continues to grow steadily, but not so fast that it’s driving prices up the way bigger cities often do.
2. Trois-Rivières, Quebec
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Trois-Rivières sits between Montreal and Quebec City, right along the Saint Lawrence River. With a population just under 150,000, it’s a smaller, quieter city that still has plenty to offer. Think historic charm, river views, and a good mix of culture and industry.
It’s also an easier place to build when it comes to cost. Land is more affordable than in bigger cities, and you’re likely to find better deals from local contractors. Getting permits isn’t overly complicated either, which keeps planning on track. Right now, building a home in Trois-Rivières costs about $150 per square foot; a practical choice for people who want to stay on budget without giving up quality.
3. Winnipeg, Manitoba
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Winnipeg, the capital of Manitoba, is centrally-located with a metro population of about 850,000. It’s one of the largest cities on this list, offering a strong local economy, diverse neighborhoods, and a relatively low cost of living compared to other major Canadian centres.
If you’re planning to build, Winnipeg is easily one of the cheapest Canadian cities. The land is easy to work with, labor doesn’t cost as much, and the permit process isn’t too complicated. That mix makes it easier to stay on track and on budget. Right now, building a home here averages about $160 per square foot, which is much more manageable than what you’d pay in places like Toronto or Vancouver.
4. Saint John, New Brunswick
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As Canada’s oldest incorporated city, Saint John sits on the Bay of Fundy and blends coastal living with industrial roots. With a population of around 135,000 in the metro area, it offers scenic views, historic charm, and some of the most affordable real estate on the East Coast.
Saint John hasn’t seen the same housing boom as Halifax or Moncton, and that’s helped keep costs in check. Builders aren’t as booked up, and land is still fairly priced. If you’re looking to build near the coast without overspending, this city is a solid option. On average, construction runs between $140 and $155 per square foot.
5. Regina, Saskatchewan
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Regina, the capital of Saskatchewan, is a prairie city with a population of just over 260,000. Known for its wide-open spaces and strong ties to agriculture and resource industries, it offers a slower pace of life and some of the most budget-friendly land in Western Canada.
Housing demand in Regina has cooled in recent years, but that’s worked in favor of those looking to build. With plenty of available contractors, flat and build-ready land, and low acquisition costs, construction stays relatively affordable. Average build costs sit between $150 and $165 per square foot, giving prospective homeowners and developers a chance to stretch their budgets further than in many other provincial capitals.
6. Thunder Bay, Ontario
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Located on the northwestern shore of Lake Superior, Thunder Bay is a smaller city in northern Ontario with a population of just over 100,000. While the population has been gradually declining, the city remains a regional hub for transportation, education, and healthcare in the north.
Because Thunder Bay isn’t growing as quickly as some other cities, there’s less competition for land making it one of the cheapest Canadian cities to build a house. That means lots are easier to find and often cost less. Building materials are also a bit cheaper here, partly because of solid local supply chains and fewer developers driving up prices. Right now, building a home in Thunder Bay costs about $155 to $170 per square foot, which makes it a good choice for anyone looking for more space and a quieter pace of life.
7. Saguenay, Quebec
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Saguenay sits in Quebec’s Saguenay–Lac-Saint-Jean region and offers a mix of small-city life and scenic surroundings. With about 145,000 people, it’s far from the noise of bigger cities and has a laid-back pace that appeals to many. It’s also more affordable, making it a solid option for people looking to build without city-level costs.
Saguenay may be farther from major cities, but that comes with some big advantages. Land is much cheaper here, and there’s a reliable pool of local trades to get the work done. A lot of building materials are available nearby too, which helps avoid high shipping costs. Right now, it typically costs between $145 and $160 per square foot to build a home, putting Saguenay among the most affordable spots in Quebec.
8. Lethbridge, Alberta
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Lethbridge sits in southern Alberta, not far from the Rocky Mountains, and has a population just over 100,000. It gets plenty of sunshine, has a strong local economy, and is generally more affordable than nearby Calgary when it comes to housing.
For people looking to build, the city offers a few key advantages. Permits are usually straightforward, development fees are lower, and land is easier to come by. All of that helps keep building costs in a reasonable range, typically between $150 and $165 per square foot. It’s a solid choice for families or first-time builders who want good value without giving up quality.
9. Charlottetown, Prince Edward Island
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The capital of Prince Edward Island, Charlottetown is a picturesque coastal city with a population of just under 40,000. Known for its maritime charm, tight-knit community, and scenic surroundings, it’s an attractive spot for those looking to build in a quieter, small-town setting.
While the local labor market is tight, land in Charlottetown remains relatively inexpensive. Government incentives and well-managed development policies help keep building costs predictable. On average, it costs around $160 per square foot to build a home here, making it one of the cheapest Canadian cities for those seeking a peaceful lifestyle in Atlantic Canada.
Bottom line
In 2025, smaller and mid-sized cities across Canada continue to offer some of the most affordable opportunities for home construction. Whether you’re planning your first build or investing in a secondary property, these cities deliver strong value without the high price tags found in larger markets. With a bit of research and planning, building your dream home could be more attainable than you think.
Interested in what it takes to build? Start with these helpful guides:
- Builder’s licence vs contractor’s licence
- How to build earthquake-resistant buildings
- How much does it cost to build a house in the U.S.?
- Top 9 must-have home features to consider when buying a house
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