When making plans to buy a home, many people err on the side of purchasing a pre-existing property. The expense of buying both land and constructing a new building can seem insurmountable – particularly when the market is flush with homes ready for purchase.
A recent analysis from Highland Cabinetry, however, reveals that in some states it might actually make more sense to build your dream home from the ground up, rather than choosing an older, previously owned residence.
“It’s essential to look beyond just the sticker price of a property,” explained a spokesperson from Highland Cabinetry, which makes cabinets and has a vested interest in the matter.
The spokesperson explained, “In states like Hawaii, where house sale prices skyrocket, building a home can offer a more economical alternative despite higher design and construction costs. Similarly, states like New York, with surprisingly low land prices, present unique opportunities for those willing to invest in building rather than buying.”
The analysis considered factors including house sale prices, land prices per acre, architectural and design fees, construction costs, and utility expenses to identify the states where it’s more affordable to construct from the group up.
In certain regions of the country, including the coasts and western mountain states, it can be disproportionately cheaper to build a new home. Conversely, in southern states such as Mississippi, Louisiana, and Arkansas, buying a pre-existing house is usually more economical.
“Across the country, these elements create a dynamic landscape where the decision to build or buy varies greatly depending on the region, making it crucial for prospective homeowners to carefully consider all these variables to make the most financially sound choice,” the spokesperson said.
Continue reading to see the 10 states where Highland Cabinetry says it’s easier to build a new home than it is to purchase an old one.
