The real bungalow vs two-storey cost comparison goes well beyond the list price. A bungalow usually needs more land, roof and foundation for each square foot you live in. A two-storey may cost more to adapt for aging in place. To compare fairly, look at price per usable square foot, the land, running costs, big repairs and what each home will be worth to the next buyer.
Key takeaways
- Compare price per usable square foot, including a finished basement, not just the list price.
- Bungalows sit on more land per square foot, and land drives much of a GTA home’s value.
- A bungalow’s larger roof and foundation can mean bigger replacement bills.
- Bungalows can save on accessibility renovations later in life.
- Closing costs scale with price, whichever style you choose.
Purchase price: compare per usable square foot
Two homes at the same price can give you very different value. A fairer way to compare is price per usable square foot.
- Add the main-floor area to any finished, dry basement space.
- Divide the asking or sold price by that total.
- Adjust for condition, such as an old roof or a dated kitchen.
- Compare the result with recent sales of similar homes on nearby streets.
A bungalow often has less above-ground space than a two-storey at a similar price. But a raised bungalow with a bright, finished lower level can close that gap. Our home comparison tool helps you line up specific homes side by side.
Land and lot value: what you’re really buying
In much of the GTA, the land is worth a large share of a home’s price. A bungalow spreads its living space across one floor, so it needs a bigger footprint, and often a bigger lot, for the same living area.
That has two money effects:
- Higher price for the space. You may pay more per square foot of living area because you’re also buying more land.
- More long-term options. A larger lot can support an addition, a garden suite or a second storey. Ontario allows up to three units on most serviced urban lots, subject to zoning, permits and code rules.
Builders also look for bungalows on good lots to rebuild. That buyer interest can support values in some neighbourhoods, though it’s never guaranteed.
Heating, cooling and running costs
A two-storey house is more compact, with less roof and foundation for its living space. Less outside surface can mean less heat loss. A bungalow has more of both, but heat doesn’t rise into a second floor, so rooms often stay more even.
In practice, insulation, windows, air sealing and the age of your furnace matter more than the number of storeys. Before you buy, ask for recent utility bills and check the attic insulation during the inspection.
Bungalow tip: Adding attic insulation is often easier in a bungalow, because the attic sits over the whole home. It can be one of the simplest ways to cut heating costs.
Roof, foundation and maintenance costs
| Cost item | Bungalow | Two-storey |
|---|---|---|
| Roof replacement | Larger roof for the living space, so a bigger bill | Smaller roof, but steeper or higher work |
| Foundation and waterproofing | Longer foundation walls to repair or seal | Smaller footprint to maintain |
| Gutters, windows and siding | Reachable with a short ladder | Second-floor work may need taller ladders or scaffolding |
| Exterior painting | Usually simpler and cheaper | More height means more labour |
| Snow and ice on the roof | Easier to see and manage | Harder to reach safely |
Costs vary widely by home and contractor, so get at least three quotes for any big job. When you compare listings, ask the age of the roof, furnace and windows and set money aside for whatever is near the end of its life.
Renovation and aging-in-place costs
This is where a bungalow can save you money over the long run. Adapting a two-storey for later life can mean a stair lift, a new main-floor bedroom or bathroom, or an addition.
Many bungalows already have most of what you’d need. Common upgrades are simpler:
- A no-step entry from the garage or front door
- Wider doorways, ideally 36 inches
- A walk-in or curbless shower
- Lever handles and grab bars
- Main-floor laundry
If you plan to stay for decades, count these future costs in your comparison today.
Closing costs and resale value
Closing costs rise with the price, not the style. In Ontario, land transfer tax on a single-family home reaches 2.0% on the portion of the price between $400,000 and $2,000,000. Toronto buyers also pay the municipal land transfer tax. A common rule of thumb is to budget 1.5% to 4% of the price on top of your down payment. Run your numbers with our mortgage and land transfer tax calculators.
At resale, bungalows can appeal to downsizers, families, multigenerational buyers, investors and builders. Two-storey homes appeal strongly to growing families. Neither style guarantees a better return. Location, lot, condition and price matter most.
Frequently asked questions
Are bungalows more expensive than two-storey homes?
Often per square foot of living space, because they need more land. But older bungalows can sell for less than newer two-storey homes nearby, so compare actual sales.
Is a bungalow cheaper to heat?
Not automatically. Bungalows have more roof and foundation surface, but insulation, windows and the furnace usually matter more than the number of floors.
Which costs more to maintain?
Bungalows usually cost less for ladder work, like gutters and painting. They can cost more when the roof or foundation needs major work, because both are larger.
The bottom line on cost
A bungalow often costs more upfront for its living space but can save money on upkeep and aging-in-place changes. A two-storey gives you more space for the land but may need costly changes later.
For the lifestyle side of the decision, read our bungalow vs two-storey pros and cons. Then browse bungalows for sale across Ontario and compare the real numbers.
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