There is no better feeling than moving into a newly constructed home. Of course, this can often come at a significant cost. In addition to potentially being more expensive, constructing a home can prove to be quite time consuming as well. A new analysis from the site StorageCafe, looked to determine whether it is cheaper to build or buy a house. Not surprisingly, at the national level it is more expensive to build a house as compared to buying an existing home. However, the results will vary by state. We share the top 10 states where it is cheaper to build a house and the top 10 states where it is cheaper to buy an existing home. To view the full report, click here.
Top 10 states where it is cheaper to build
| Rank | State | Average Cost To Buy Land & Build | Median Single-Family Home Listing Price | Difference: Building vs. Buying |
| #1. | Hawaii | $551,000 | $1,045,000 | -$494,000 |
| #2. | California | $495,000 | $700,000 | -$205,000 |
| #3. | Colorado | $492,000 | $600,000 | -$108,000 |
| #4. | Utah | $538,000 | $635,000 | -$97,000 |
| #5. | Virginia | $361,000 | $458,000 | -$96,000 |
| #6. | Delaware | $394,000 | $490,000 | -$96,000 |
| #7. | Maryland | $365,000 | $460,000 | -$95,000 |
| #8. | Montana | $515,000 | $599,000 | -$84,000 |
| #9. | Florida | $375,000 | $451,000 | -$76,000 |
| #10. | Idaho | $505,000 | $575,000 | -$70,000 |
Top 10 states where it is cheaper to buy
| Rank | State | Average Cost To Buy Land & Build | Median Single-Family Home Listing Price | Difference: Building vs. Buying |
| #1. | Pennsylvania | $528,000 | $345,000 | +$183,000 |
| #2. | Ohio | $450,000 | $272,000 | +$178,000 |
| #3. | Illinois | $461,000 | $295,000 | +$166,000 |
| #4. | Maine | $544,000 | $380,000 | +$164,000 |
| #5. | Iowa | $460,000 | $299,000 | +$161,000 |
| #6. | Missouri | $445,000 | $290,000 | +$155,000 |
| #7. | Michigan | $452,000 | $299,000 | +$153,000 |
| #8. | South Dakota | $479,000 | $335,000 | +$144,000 |
| #9. | Indiana | $452,000 | $310,000 | +$142,000 |
| #10. | West Virginia | $358,000 | $225,000 | +$133,000 |
Summary
Although this analysis showed that building in Florida may actually be slightly less expensive than buying an existing home, it will certainly vary by the region of the state. In addition to inflationary pressures on material prices, we are also still seeing labor shortages and supply chain issues across parts of the country. Of course, the cost to build any home will vary tremendously depending on the materials and finishes used. For anyone that has ever embarked on a renovation project, you will likely know firsthand how quickly a budget can escalate when taking on a large project.
Do you have questions about buying or selling real estate in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device too.
