In Toronto, space is expensive — and not just financially.
For many homeowners, the idea of upgrading to a larger property sounds simple in theory. In reality, it means competing in a tight market, paying both provincial and municipal land transfer tax, absorbing realtor commissions, legal fees, moving costs, and then often renovating the new home anyway.
For families who love their neighbourhood — whether it’s Riverdale, The Annex, East York, or Leslieville — moving doesn’t always feel like an upgrade. It feels like disruption.
That’s why a growing number of Torontonians are choosing a different solution:
They’re building down instead of moving out.
What “Building Down” Actually Mean
When people talk about “building down,” they’re typically referring to underpinning — a structural process that lowers a basement floor by excavating below the existing foundation and extending it deeper.
Unlike a basic basement renovation, this isn’t cosmetic. It’s structural.
Many older Toronto homes were built with basements intended for storage, not living. Ceiling heights of six feet or less were common. By lowering the basement and strengthening the foundation, homeowners can create full-height, liveable space that feels like a true extension of the home — not an afterthought.
There are a few approaches, including full underpinning and benching, and the right method depends on the property, soil conditions, and structural design. This is where experienced engineering and structural contractors become critical.
Why This Trend Is Particularly Toronto
1. Aging Housing Stock
Much of Toronto’s residential inventory was built before 1960. These homes were never designed with modern living expectations in mind — open layouts, legal secondary suites, home offices, or multi-generational living.
The bones are solid. The basements often aren’t.
Lowering and reinforcing foundations allows older homes to evolve without sacrificing character.
2. Tight Lots and Zoning Constraints
In many neighbourhoods, expanding outward simply isn’t feasible. Lot coverage limits, setback requirements, and height restrictions can make additions complex and costly.
Building down avoids many of these constraints because the home’s footprint remains unchanged.
3. Multi-Generational Living and Rental Suites
Toronto’s housing affordability challenges have also made secondary suites more attractive. A properly underpinned basement can support:
- In-law suites
- Rental apartments
- Private home offices
- Recreation and family spaces
When done legally and structurally sound, this can significantly improve functionality — and in some cases, add income potential.
How Building Down Can Increase Home Value in Toronto
In Toronto, value is often calculated by the square foot.
When a basement shifts from “unfinished storage” to “legal, full-height living space,” it fundamentally changes how a property is perceived — and appraised.
A properly underpinned basement can:
- Increase total liveable square footage
- Improve ceiling height to modern standards
- Support legal secondary suites
- Enhance resale appeal
- Modernize an older home without altering its exterior footprint
Appraisers and buyers do not view a six-foot crawlspace the same way they view an eight-foot finished lower level with proper lighting, insulation, and structural integrity.
That distinction matters.
In many established Toronto neighbourhoods where detached homes routinely exceed the million-dollar mark, gaining 600–1,000 square feet of usable space can significantly shift market positioning. For some homeowners, the ability to add a legal rental suite also changes the income profile of the property — something buyers increasingly factor into purchase decisions.
When Building Down Makes Structural Sense — And When It Doesn’t
Underpinning isn’t right for every home.
Soil conditions, neighbouring properties (especially in semi-detached and row houses), foundation type, and structural integrity all influence feasibility. Toronto’s mix of clay soil and aging masonry foundations can present unique excavation challenges.
This is where experienced professionals matter.
Contractors like True North Underpinning are often brought in at the assessment stage, working alongside engineers to evaluate whether a property can safely support basement lowering. According to structural specialists in the field, proper sequencing, excavation control, and load management are what protect both the home and adjacent properties during the process.
When engineered and executed properly, underpinning can significantly strengthen a home. However, structural modifications without proper oversight can create long-term complications — which is why permitting and professional sequencing are critical.
That difference is more than technical — it’s structural.
Common Misconceptions About Basement Lowering
One of the biggest misconceptions is that underpinning is simply “digging deeper and pouring concrete.”
In reality, it is a phased structural process. Sections of the foundation are carefully excavated and reinforced in sequence to maintain structural stability throughout construction. Permits, inspections, and engineering oversight are not optional — they are essential.
Move or Modify? The Financial Comparison
Homeowners also sometimes underestimate:
In the Greater Toronto Area, homes remain expensive — even through recent shifts in the market. According to the Toronto Regional Real Estate Board (TRREB), the average selling price for all property types was about $973,289 in early 2026, underscoring the high cost of just relocating.
Moving to a larger home in Toronto often means:
- Realtor commissions
- Double land transfer tax (Ontario + Toronto)
- Legal and closing fees
- The importance of waterproofing integration
- The need for proper drainage upgrades
- The impact on neighbouring foundations
- Insurance considerations
An experienced contractor will account for all of these variables long before excavation begins.
A Broader Shift in How Toronto Is Growing
Toronto isn’t expanding outward the way it once did. Instead, it’s densifying within established neighbourhoods.
Secondary suites, laneway houses, and basement conversions are part of a broader movement toward “gentle density” — increasing liveable space without demolishing the fabric of existing communities.
Building down fits naturally into this evolution.
It allows homeowners to remain in walkable, transit-connected neighbourhoods while adapting older homes to modern life. It supports family growth without forcing relocation. And it can enhance structural resilience in properties that are decades — sometimes more than a century — old.
Is Building Down Right for You?
There’s no universal answer.
For some homeowners, moving makes sense. For others, especially those rooted in their communities, expanding below grade can be a strategic alternative.
The key is understanding that underpinning is not a cosmetic renovation — it’s structural work that requires engineering insight, proper permits, and experienced execution.
In a city where every square foot carries value, building down has become more than a trend. It’s a calculated response to Toronto’s unique housing landscape — one that reflects how homeowners are adapting, strengthening, and reimagining the space beneath their feet.
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