With home prices and construction costs both at high levels, it can be hard to determine whether buying an existing home or building a new one is the most cost-effective option. While it’s usually cheaper to buy a home than build one from scratch, in some states — especially in places where demand for homes greatly outweighs the supply — the opposite is true.
StorageCafe analyzed the costs associated with both buying and building a home in each U.S. state and found the 18 states where it’s currently cheaper to build. Many of these states are concentrated in the West and South Atlantic, and in one state, it’s now nearly $500,000 cheaper to build than buy.
See the states where new construction is the cheaper route to home ownership.
18. New York
- Total building costs: $524,000
- Median single-family home listing price: $535,000
- Difference in building vs. buying costs: -$11,000
17. Tennessee
- Total building costs: $361,000
- Median single-family home listing price: $374,000
- Difference in building vs. buying costs: -$13,000
16. Georgia
- Total building costs: $365,000
- Median single-family home listing price: $395,000
- Difference in building vs. buying costs: -$30,000
15. North Carolina
- Total building costs: $363,000
- Median single-family home listing price: $395,000
- Difference in building vs. buying costs: -$32,000
14. Oregon
- Total building costs: $502,000
- Median single-family home listing price: $545,000
- Difference in building vs. buying costs: -$43,000
13. Texas
- Total building costs: $361,000
- Median single-family home listing price: $412,000
- Difference in building vs. buying costs: -$51,000
12. Massachusetts
- Total building costs: $576,000
- Median single-family home listing price: $629,000
- Difference in building vs. buying costs: -$53,000
11. Washington
- Total building costs: $493,000
- Median single-family home listing price: $559,000
- Difference in building vs. buying costs: -$66,000
10. Idaho
- Total building costs: $505,000
- Median single-family home listing price: $575,000
- Difference in building vs. buying costs: -$70,000
9. Florida
- Total building costs: $375,000
- Median single-family home listing price: $451,000
- Difference in building vs. buying costs: -$76,000
8. Montana
- Total building costs: $515,000
- Median single-family home listing price: $599,000
- Difference in building vs. buying costs: -$84,000
7. Maryland
- Total building costs: $365,000
- Median single-family home listing price: $460,000
- Difference in building vs. buying costs: -$95,000
6. Delaware
- Total building costs: $394,000
- Median single-family home listing price: $490,000
- Difference in building vs. buying costs: -$96,000
5. Virginia
- Total building costs: $361,000
- Median single-family home listing price: $458,000
- Difference in building vs. buying costs: -$96,000
4. Utah
- Total building costs: $538,000
- Median single-family home listing price: $635,000
- Difference in building vs. buying costs: -$97,000
3. Colorado
- Total building costs: $492,000
- Median single-family home listing price: $600,000
- Difference in building vs. buying costs: -$108,000
2. California
- Total building costs: $495,000
- Median single-family home listing price: $700,000
- Difference in building vs. buying costs: -$205,000
1. Hawaii
- Total building costs: $551,000
- Median single-family home listing price: $1,045,000
- Difference in building vs. buying costs: -$494,000
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All data is sourced from StorageCafe and is accurate as of Feb. 22, 2023.