Building a New Home vs Buying Resale: A Cost Comparison Guide
Download MP3Overview: In today’s market, purchasing a new home has become extremely expensive for many buyers, with rising resale home prices and high interest rates. One alternative is building your own home, which might be more affordable, depending on your situation.
Key Points:
- Rising Costs of Buying a Home:
- Resale home prices have increased significantly, making it unaffordable for many buyers.
- Interest rates have contributed to higher home purchasing costs.
- Building a Home as an Alternative:
- Building a home may be a more affordable option, even if you hire a full-service builder or general contractor.
- Research from Storage Cafe indicates that in markets like Oregon and Washington (Pacific Northwest), as well as many parts of the South Atlantic, it’s often cheaper to build than to buy.
- Benefits of Building Your Own Home:
- Everything is brand new, including the roof, which comes with a fresh 20-year warranty.
- You can design the home exactly how you want it, including the layout, colors, paint, and flooring.
- It’s easier to find a vacant lot than a built home that fits your needs.
- Challenges of Building a Home:
- The build process can be stressful and may involve delays, permits, and backlogs of materials.
- It could take several months or up to a year to complete the construction.
- However, this process might actually be faster than house hunting for a resale home, especially if you’ve been shopping for months without success.
- Conclusion:
- Building a home could save you money in the long run, especially with high resale home prices and interest rates making home buying out of reach for many.
- While there are challenges in the building process, the savings and benefits might make it worth considering.
Call to Action: If you're currently renting or planning to sell your home, consider whether building your own home might be a better option in today's market.
