Buyers looking for existing homes are combatting inflated home prices, elevated borrowing costs, and a decades-old housing shortage, but in some locations, new-home construction may actually be a more affordable alternative. A recent study by StorageCafe found that building was actually cheaper than buying in 18 states in 2022, but total costs depend on location, house size, and a number of other factors.
Building in California was found to save over $200,000, according to the study, and in Colorado, homebuyers could save more than $100,000 by starting from scratch. Hawaii topped the list of locations with the greatest cost savings. While the average island home costs around $1 million to buy, average building costs fluctuate around roughly $550,000, The New York Times reports.
Building was found to be cheaper than buying in 18 states. In Hawaii, the median-priced house was listed at $1,045,000, but the study found that building would cost only $551,000, about $494,000 less, the greatest savings discovered.
In 28 of the states studied, building wasn’t worth it.
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