Building vs. Buying in 2024: States for Cost-Effective Homeownership
Written by
Laura Beck
Edited by
Amber Barkley
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Looking to get into the housing market but not loving the prices? Here’s something interesting: In some states, building your dream house might actually be smarter than buying one.
Hard to believe, but true, according to a new study from Highland Cabinetry. GOBankingRates dives into the results and why you might want to grab your hammer instead of your checkbook — just make sure you budget in these hidden costs.
Hawaii
Yeah, Hawaii. The state with $842,181 average house prices actually tops the list for places where building makes more sense than buying.
Why? Land’s not as wildly expensive as you’d think — about $24,170 per acre. Still pricey, but way more manageable than those house prices.
California
No shock here — California’s second on the list with average houses hitting $778,355. But check this out: Land runs about $15,445 per acre. Sure, you’ll pay through the nose for architects — $35,000 on average — but you might still come out ahead of those insane housing market prices.
Massachusetts
Here’s where it gets interesting. Massachusetts ranks third, but there’s a catch: Land prices are through the roof at $48,830 per acre. Still, with houses averaging $625,065 and relatively reasonable design fees of $22,000 on average, the math might work in your favor.
New York
Don’t sleep on New York. Houses average $764,868, but here’s the kicker: Land prices are stupid cheap at $5,187 per acre. Yeah, you read that right. Sure, architects will cost you — $35,000 — but that land price might make it worth it.
The Budget-Friendly Duo
Want the best deal on design fees? Head to New Hampshire or Utah, where architectural costs bottom out at $12,000. Utah’s even sweeter — construction runs just $155 per square foot, the lowest in the top ten.
“When considering where to build or buy a home in the U.S., it’s essential to look beyond just the sticker price of a property,” Highland Cabinetry’s spokesperson noted.
Translation? Do your homework. Look at land costs, construction prices and design fees in your target area. Sometimes the smartest move isn’t the obvious one.
Editor’s note: Average house prices were sourced from Zillow and are accurate as of Dec. 20, 2024.
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