What are the Best and Worst States to Build a House In?
For many, building their own home is a dream that they one day hope to make a reality. However, there are pros and cons to building your own home – even for the most financially sound person. Obviously, the price is one of the factors that has to be firmly taken into consideration if you’re trying to decide between building or purchasing an already built home. Because of this, it can pay to understand the home-building market in your state. Here is a profile of five of the worst, and five of the best states to build a home in.
Worst: Hawaii
The estimated cost to
build a house: $290,000
Estimated hourly labor cost: $27.00
Hawaii is known as being an expensive place to live overall. It has both the highest estimated cost to build a house, as well as the highest estimated hourly labor cost.
Best: Oklahoma
The estimated cost to
build a house: $145,912
Estimated hourly labor cost: $14.19
Cheap labor and building costs have propelled Oklahoma to our number 1 spot for the most affordable places to build a home. The average cost to build a 1,800-square-foot home here less than $150,000 making it the lowest in the United States.
Worst: California
The estimated cost to
build a house: $259,726
Estimated hourly labor cost: $21.26
The state of California isn’t very far behind Hawaii when it comes to the high costs of both building or purchasing a home in the state. Currently, California is one of the states that is facing a real estate bubble.
Best: Mississippi
The estimated cost to
build a house: $155,215
Estimated hourly labor cost: $13.92
Mississippi has the fifth-lowest building cost in the country. But it is closer to the number two spot in terms of places to build a home. This is due to the fact that the state’s three largest cities: Jackson, Gulfport, and Southaven, have the lowest average building cost on our list. Its average labor cost is the fourth most economical, as well.
Worst: Washington
The estimated cost to
build a house: $238,898
Estimated hourly labor cost: $22
Washington has the eighth-highest average hourly wage for construction workers. Additionally, according to recent studies, it is also the third most costly state to build a home in. Because it is a metropolitan, it is essential to note that the further out that you consider building – in the suburbs as opposed to downtown – the lower the prices will be.
Best: Nebraska
The estimated cost to
build a house: $152,263
Estimated hourly labor cost: $14.50
Nebraska has the 13th-lowest construction labor cost in the country. However, it offers potential home builders the third-lowest overall building cost. In fact, it would cost less than $153,000 to build an 1,800 square-foot home.
Worst: Massachusetts
The estimated cost to
build a house: $228,490
Estimated hourly labor cost: $25.84
According to recent findings, Massachusetts has the sixth-highest estimated cost to build a home. It also has the third-highest labor cost.
Best: Arkansas
The estimated cost to
build a house: $162,662
Estimated hourly labor cost: $12.38
The state of Arkansas has the lowest construction labor cost in the country. However, it is not the cheapest place to build a house. It actually comes in around 11th place in that category.
Worst: Alaska
The estimated cost to
build a house: $229,000
Estimated hourly labor cost: $23.88
Statewide, the estimated cost to build a home in Alaska is the seventh-highest. That said, the average cost to build a home in the state’s three largest cities: Anchorage, Juneau, and Fairbanks are the third highest. Alaska also has the fifth-highest labor cost.
Best: Michigan
The estimated cost to
build a house: $150,310
Estimated hourly labor cost: $18.31
The average labor cost in Michigan is notably higher than in more than half of the states. That said, the state of Michigan has the second-lowest building cost. In fact, one study found that Michigan is one of the best states for first-time homebuyers.
No matter what state you live in, building a home is not cheap, but it is undoubtedly more affordable in some countries compared to others. It is essential to be aware that if you live in a state that has a higher cost of living, you will likely face higher building costs as well.