Basement
Understand what a basement is in Canadian homes, how it’s used, what types exist, and how it affects property value and legal standards.
June 06, 2025
What is a Basement?
A basement is the lowest level of a home, located below the main floor, which may be used for storage, utilities, living space, or rental purposes.
Why Basements Matter in Real Estate
In Canadian real estate, basements are valued for their functional space and potential to add income or living area, especially in urban markets.
Types of basements include:
- Full basement (finished or unfinished)
- Partial or crawl space
- Walk-out or garden-level basements
Basement features can affect market value, insurance, and utility costs. Finished basements must comply with egress and electrical code to be considered livable.
Understanding basement types, risks (e.g., flooding or radon), and renovation standards helps buyers and homeowners make informed decisions.
Example of a Basement
The buyer purchases a home with a legal secondary suite in the basement, providing rental income and helping qualify for a larger mortgage.
Key Takeaways
- Located below the ground floor
- Used for storage, living, or income
- Must meet code for legal occupancy
- Affects value, insurance, and utility usage
- Prone to moisture and radon issues
Related Terms
- Sump Pump
- Foundation
- Egress Window
- Finished Basement
- Rental Suite


Canada residential unit sales by month, actual, 2019 and 2024-2026. Data through June 2026. Source:
Canada residential sales-to-new-listings ratio, actual, January 2025 to June 2026. Source:
Canada residential months of inventory, actual, January 2025 to June 2026. Source: Source:
Year-over-year change in residential average sale price for Canada, Ontario, British Columbia and Alberta, January 2022 to June 2026. Average price is shown here as a regional mix measure, not a substitute for HPI or local comparable sales. Source:
Year-over-year change in residential unit sales for Canada, Ontario, British Columbia and Alberta, January 2024 to June 2026. Source: 






15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)
Renderings of the tower proposed for 15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)

Goldberg Group 
10-storey apartment building currently occupying 525 Eglinton Avenue East/WND Associates
Rendering of 525 Eglinton Avenue East/Wallman Architects
The Mayfair West site and its surrounding context. (Grosvenor, Arcadis, Hariri Pontarini Architects)
Renderings of Mayfair West. (Grosvenor, Arcadis, Hariri Pontarini Architects)
