Should You Build or Buy Your Home? How to Decide in 2022’s Red Hot Housing Market

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Almost everyone dreams of living in their own home. Whether it’s rustic, farmhouse, modern, or a classic family home, having a place to call your own is high on most people’s list. 

In the current housing market, one of the most significant debates people have with themselves is if they should buy or build their house. There are pros and cons to buying a house, just like building your home. More and more people are leaning towards building their dream home, and looking at home plans for inspiration can help you make your decision. However, if that doesn’t work, there are a few other considerations that will help you decide on your dream home. 

Building a house

Building a house seems more complicated than buying a home, and in some ways, it can be. While that’s true, most people think the benefits outweigh the disadvantages of building a house. 

When you build a house, you get to choose every detail that goes into it. You can choose the layout, the materials, the paint colors, and how you want the home’s interior design to be. This can be tedious for some people, but it’s the best way to ensure they get everything they want in a house for others.

Building a home takes longer than buying one because there could be issues with the supply chain for materials, weather delays, and other factors that can cause the project to slow. The changing timeline means that you won’t always have a set move-in date like buying a built home.

Another thing to consider before jumping to home building is that the project’s cost can change throughout the project. Budgeting is an important aspect to note as you may need to go with materials with a different price tag due to availability or pay for unexpected expenses like extra labor. 

On the other hand, you won’t have to deal with market competition and other home buyers outbidding you when you build a house which can come with stress and dissapointment if you can’t find the perfect home.

Buying a house

Buying a house is the easier choice to go with because most people don’t realize they have another option. There are several reasons to buy a home that’s already on the market and move-in ready. 

One of the biggest draws to purchasing a house is that once you get through the paperwork and the seller accepts your offer; there’s almost always a set move-in date. This component can be a huge selling factor when deciding whether you’ll build or buy a home. 

While buying a home can be frustrating, the process is generally very straightforward. You’ll work with a real estate agent; they place offers and wait for approvals. With building, you’ll have several more decisions to make. 

A significant downside to buying a home is that you might have to compromise on what you want. A house could check every box but one, and then you’ll have to repair, replace, or add whatever it is upon moving in, which may or may not break the bank.

Is it cheaper to buy or build a home?

It’s hard to say whether it’s more affordable to build or buy your home. Several factors can make either option more expensive than the other. 

When building a home, you have to factor in the cost of the land, the materials, labor, and permits that you might need. The price for materials can change throughout the process, making the overall cost fluctuate and could cause further delays.

Buying a home comes with putting down a down payment and closing costs which can add up. But you can build a house for less money than buying one if you make a smaller one in a more affordable area where land costs are lower.

Housing prices have risen dramatically in the last year, making many homebuyers lean toward building a home from the ground up. Depending on where you live, you can find land and build a house for less than purchasing one in the constantly changing housing market. 

While housing prices have increased, you also have to consider that the cost of lumber has increased too. According to the National Association for Home Buyers (NAHB), lumber costs have jumped more than 20% and continue to rise. 

Therefore, whether it’s cheaper to buy or build will depend on where you live, what materials you choose, and how large of a home you’re interested in.

So, should you build or buy a home?

Whether you should build or buy your home depends on your preference, your lifestyle, and your budget. Buying a home is a great way to get into a new place faster, but building a house allows you to make it entirely your own and one you’ll want to stay in for years to come.