Key Takeaways
When building your own custom home, it is crucial to ensure your house size aligns with the lot size you purchase. Throughout this blog, we will help you determine the right house size for you, factoring in the average square footage of a house, average lot sizes, and other aspects like building requirements and zoning laws, your family size, lifestyle, what can be built on various lot sizes, and different financial considerations.
What is an Ideal Good Size Lot for a Home?

The ideal lot size for a home depends entirely on you and your needs. It is good to think about family size, lifestyle, and any specific personal preferences which could affect your house’s size and therefore the size of the lot.
While you can still keep the average residential lot size in Canada in mind as you look for the right space, ultimately a good size lot is one that has enough room for both your house and an outside area around it for a front yard and backyard.
Understanding Lot Size and Building Regulations
It is important to check your local zoning laws and building codes in order to know the maximum height you can build your house and any other building requirements for your lot. There could be a view ordinance in place which would set restrictions on if you can add a second floor to your house.
Some other factors that should be taken into account, as they could limit the space where you can build your home, are the topography of the lot, any environmental features that could affect the build, and setbacks, how far from the property line a house can be placed, as well as any existing easements on the land title that could influence the utilization and development of the lot. If the lot is land-locked, meaning there is no access to a road, you will need to get an easement for your neighbour’s property, obtaining permission from them to pass through their land to get to yours.
In terms of lot sizes, a quarter acre lot can usually accommodate one single-family home. Depending on local zoning regulations, a third acre can accommodate one or two single-family homes, while a half acre can accommodate two to three, and a full acre can fit four or more.
Understanding Lot Size and Building Regulations
The average lot size in Ontario varies based on location and particularly the type of area. Urban areas will typically have smaller lots around 0.1 to 0.15 acres, while suburban areas will have medium-sized lots around 0.2 to 0.3 acres, and rural areas will have larger lots between 0.5 to several acres.
In general, for a 1,500 square foot home, you will need at least 0.15 acres; a 2,000 square foot home will need 0.2 acres and a 2,500 square foot home will need 0.25 acres, whereas a 3,000 square foot home will need about 0.3 acres.
Determining Your Space Needs
Over time the average house size in Ontario has gotten bigger. In fact, nowadays houses are about 30% larger than those built in the 80s and 90s and twice as large as those from the 60s and earlier. It seems to be that families are needing more and more space as the years go by.
When deciding on how much space you actually need for your home, the size of your family and what your lifestyle is like are major factors. The number of household members you have determines how many bedrooms and bathrooms you will need, while your lifestyle tells you more about what you will need for the remaining rooms in the house. It is also important to maintain a balance between indoor and outdoor areas, ensuring that you have enough space for both and that by building a bigger house you are not stuck with too small of a lawn or backyard.
Matching Lot Dimensions with House Design
Choosing to have a single-story or multi-story home can greatly affect the cost to build. Even if the two have the same square footage, it is cheaper to build up than it is to build out, so this is definitely something to consider when deciding on lot size. If you choose to go with a smaller lot, you will probably need a more compact home. As such, building a multi-story house in this instance would be a better option. However, if you choose to go with a bigger lot, you can build a more sprawling home and can instead go with a single-story design.
Understanding lot-to-house ratios will help you get a better sense of the size of your home versus the size of the lot. To figure out your lot-to-house ratio, simply divide the square footage of the land parcel by the square footage of the building. For instance, a 2,500 square foot home on a 10,890 square foot piece of land would have a 4.36:1 ratio because 10,890 divided by 2,500 is 4.36 and there is only one building on the lot.
How to Calculate Right House Size per Person
The size of your house often depends on how many people will be living in it. When determining how big of a house you will need, it is standard to multiply 600 square feet by the number of people, and if you are thinking of perhaps having children some day or if you will eventually have to make room for an older parent, when calculating this, you should not forget to account for any future household members.
For example, the average house size for a family of 4 would be 2,400 square feet as demonstrated in the chart below:
Number of People | Square Footage |
1 | 600 sq ft. |
2 | 1,200 sq ft. |
3 | 1,800 sq ft. |
4 | 2,400 sq ft. |
Average House Size by Room
You can also determine your average house square footage based on the size of the rooms. Figuring out room sizes can sometimes be difficult since larger homes will have larger rooms and may even have open concepts where one room leads into another, making them seem like part of the same room.
For the purpose of the following breakdown, we will assume that a 2,400 square foot home houses two adults and two children, and contains three bedrooms, two and a half bathrooms, and a traditional floor plan:
Room Room | Average Square Footage |
Living Room | 481 sq ft. |
Dining Room | 200 sq ft. |
Kitchen | 174 sq ft. |
Primary Bedroom | 309 sq ft. |
Primary Bathroom | 160 sq ft. |
Additional Bedrooms | 120 sq ft. |
Additional Bathrooms | 40 sq ft. |
Additional Miscellaneous Rooms | 120 sq ft. |
Financial Considerations
As previously discussed, the size of your house greatly affects the cost it takes to build. Consequently, the bigger the house, the more expensive construction will be. When creating a budget, it is necessary to consider everything from the cost of the land to the cost of construction to what the ongoing expenses for your house will be, like property taxes and maintenance fees.
You may want a bigger house, but do not have the financial capacity to afford it. If this is the case, it is a good idea to determine what your real must-haves are and what are things that would just be nice to have, but are not needed, so as to answer the question, “How big is a house that I can afford?”
When buying the plot of land that your house will sit on, there are also different land loan options you can apply for, including a raw land loan for lots that are completely undeveloped, an unimproved land loan for lots that have been partially developed, and an improved land loan for lots that have been mostly developed with possible access to roads and utilities.
Consulting Professionals for the Best Fit
When building a house, consulting with professionals and hiring an experienced design-build company can help you make key decisions that will provide you with a better, more affordable home. In working with a project management firm, their design specialists and architects can draft the blueprints for your house.
These specialists use 3D modeling in the planning stage which makes it easier to visualise what the house and each room in it will actually look like, giving you a better sense of the design itself. In the construction stage, builders will use their expertise to make sure that the house is properly built and durable, with all of the different electrical and plumbing systems functioning correctly.
Overall, professionals as a whole can assist you in optimizing the space of your lot and ensuring that you adhere to all building regulations in order to create the ideal house for you.

Next Steps to Deciding the Right Size Home
In this article, we have discussed the average square feet of a house lot and how important it is to align the size of your house with the size of your lot, while still taking into account your personal needs to create the perfect space for you. For the best results, it’s a good idea to consult with experts that can help you thoughtfully plan and then build your home.
At Nicks Developments, we are an experienced design-build firm here to help you in whatever way we can. If you have any questions or are ready to get started building your home, contact us today!