Is it cheaper to build a new home or buy an existing house? According to census data the median cost of a newly built house was $534,600 in November 2022 versus $454,900 for an existing home in October 2022.
Of course, there are pros and cons to both buying and building.
If you are building a new home some the biggest pros will be you have a custom-built home, that is brand new and move in ready. You may also have lower bills with newer efficient appliances and systems. Some of larger cons are time – this means more of your time; you’ll likely have to be more involved and review construction decisions and options which can be a challenge if you have your hands full with work and family. Building also takes longer with an average of over seven months for new construction. You can also experience cost over-runs and contractor / sub-contractor delays.
Buying an existing home as we noted tends to be cheaper and you’ll be able to move in much sooner. You may also be able to negotiate for a lower price if a home has been on the market for over 30 days. Additionally, if you are looking to live in a specific area you may have more options. Of course, if you buy an existing home you will have to compromise on layout and features versus building your own home. Depending on the age of home you may also have older appliances and systems.
Building or buying are also going to have different financing options. Schedule a consultation with us on our website and we can review the options to give you a better idea of your specific options.