Housing Markets Where Building Costs Are the Lowest

Construction costs are growing, causing overall housing investment to stagnate across the country. Still, there are some parts of the U.S. finding ways to keep homes affordable. To figure out which states are investing the most in affordable homes, Construction Coverage analyzed the average construction cost per new housing unit approved in metros across the U.S. with the goal of identifying where lower building costs might be making housing more affordable.

In 2024, the national average reached $260,229, a 7.6% increase from the year prior. However, some metro areas fell well below that figure. Among the largest metropolitan areas, Omaha, Neb. has the lowest building costs at $172,691. This was followed by Richmond, Va., at $180,794, and then New York City at $182,378.

At the other end of the spectrum, major coastal metros like Miami, FL ($391,718); San Francisco, CA ($369,681); Portland, OR ($341,810); and Boston-Cambridge ($337,227) reported some of the highest construction values per unit. These figures can reflect a combination of factors, including higher building costs, more stringent building codes, and a greater focus on high-end residential development relative to more affordable units.