Is a Bungalow a Good Investment? Pros, Cons and What to Check

A bungalow can be a good investment because it usually comes with more land, simple one-level living that appeals to many buyers, and room to add income through a basement or garden suite. The trade-offs are a higher price per square foot of living space and older homes that may need updates. Whether it’s a good investment for you depends on the price, the lot and your plans.

Why bungalows can make good investments

More land for your money

Because a bungalow spreads its living space across one floor, it typically needs a wider footprint and lot. In established GTA neighbourhoods, that land can be a big part of what the property is worth, and it gives you options later.

Broad buyer appeal

Bungalows draw several groups at once: empty nesters who want to avoid stairs, young families who want a yard, multigenerational households and investors. A wider buyer pool can help when it’s time to sell, though no outcome is guaranteed.

Income potential

Ontario allows up to three units on most serviced urban lots. A bungalow’s full-size basement and deep yard make it a natural fit for a legal basement suite or garden suite, subject to permits and local zoning.

Simpler to maintain and adapt

One-storey homes are easier to reach for roof, gutter and window work. They’re also easier to adapt for aging in place, with features buyers look for such as a no-step entry, main-floor laundry, 36-inch doorways and a curbless shower.

The downsides to weigh

• Price per square foot: you often pay more for each square foot of above-grade living space than with a two-storey home.
• Less main-floor space: bedrooms and living areas share one level, which can feel tight for larger families.
• Older housing stock: many GTA bungalows date from the post-war decades and may need roofs, wiring, plumbing or waterproofing.
• Limited supply: few new bungalows are built in the GTA, so competition for good ones can be strong.
• Bigger roof and foundation: relative to living space, which can mean higher repair and heating costs.

Bungalow vs other home types as an investment

Home type	Investment strengths	Common drawbacks
Bungalow	Land, extra-unit potential, broad appeal	Higher cost per square foot; older stock
Two-storey detached	More living space for the price	Stairs limit some buyers; basement units can be harder
Townhouse	Lower entry price	Less land; possible fees; limited unit potential
Condo apartment	Lowest entry price; little exterior upkeep	Monthly fees; no land; rental rules set by the building

What makes a bungalow a smart buy?

Use this checklist when you view a bungalow as an investment:

1. The lot: frontage, depth, shape and what it backs onto.
2. Zoning: whether additional units or a garden suite are allowed.
3. The basement: ceiling height, window size, a possible separate entrance and signs of water.
4. Big-ticket systems: age of the roof, furnace, windows, electrical panel and sewer line.
5. Location: transit, schools, shopping and the street itself.
6. Price: recent sales of similar bungalows nearby, not two-storey homes.

Compare options side by side with our home comparison tool.

Is now a good time to buy a bungalow?

No one can time the market reliably. As of August 2026, TRREB reported that the GTA market was moving toward balance, with an average price of $993,410, down 2.7% from a year earlier, and homes taking an average of 51 days to sell. That gives buyers more choice and negotiating room than in hotter years.

A better question is whether the home fits your budget and plans for the next several years. For more market context, see our Ontario bungalow market update.

Who a bungalow investment suits best

• Owner-occupiers who want one-level living now and a flexible home later.
• House hackers who plan to live upstairs and rent a legal lower unit.
• Long-term investors focused on land value and extra-unit potential.
• Multigenerational families who need separate but connected living spaces.

If you’re investing for rental income, read our guides on GTA bungalow investment and running rental property cash flow numbers.

Frequently asked questions

Do bungalows hold their value?

Many do, thanks to land and broad buyer appeal. But values move with the market, and condition, location and price paid matter most.

Are bungalows more expensive than two-storey homes?

Often per square foot of above-grade living space, because of the larger footprint and lot. Total prices vary widely by area.

Is a bungalow a good investment for retirement?

It can be, since one-level living supports aging in place. Make sure the home is easy to adapt and the location suits your needs.

Should I buy a bungalow or a two-storey home as an investment?

A bungalow usually offers more land and easier conversion to a second unit, while a two-storey home offers more living space for the price. Decide based on your strategy and budget.

The bottom line

A bungalow can be a strong investment when you buy the right lot at the right price and use its flexibility. Inspect carefully, check zoning and plan for updates. Ready to look? Browse bungalows for sale across Ontario.