A recent study by Highland Cabinetry analyzed all 50 US states to identify those where it’s easier to build a house rather than buy one. The study is based on a comprehensive analysis of housing-related costs across the U.S., focusing on factors such as house sale prices, land prices per acre, architectural and design fees, construction costs, and utility expenses. All these data points were synthesized into a composite score for each region, enabling a clear comparison of the overall cost of homeownership across different areas in the U.S.

Hawaii leads the rankings as the state where it’s easier to build a house than to buy one, with a composite score of 50. The state stands out with the highest house sale prices at $856,327, significantly contributing to the high homeownership cost. Despite the high property prices, land in Hawaii is moderately priced at $24,170 per acre, offering some relief for those considering building.

California ranks second in the study with a composite score of 44.2. The state’s average house sale price is $782,695, making it one of the most expensive states to purchase a home. However, the land price per acre is relatively lower at $15,445, which, when combined with high architectural and design fees of $35,000, suggests that building a house could be a more cost-effective option.

Massachusetts comes in third with a composite score of 37.3. The average house sale price is $609,415, placing it among the higher-priced states for homeownership. Land prices per acre are the highest on the list at $48,830, which could make building a home more costly unless offset by lower design and construction costs. Architectural and design fees are relatively moderate at $22,000, and construction costs are twice lower than in Hawaii at $275 per square foot.

Washington ranks fourth with a composite score of 31.8. The average house sale price in Washington is $588,986, which is substantial but not as high as in other states. The land price per acre is moderate at $21,467, making land acquisition feasible for those looking to build. Architectural and design fees are among the lower end at $19,000, and construction costs are the second lowest on the list at $200 per square foot. Utility hookup costs are the lowest, tied with Colorado and Utah at $360.

New Jersey takes the fifth spot, with a composite score of 31.4, where both buying and building a home come with balanced costs. The average house sale price is $508,430, and the land price per acre is $17,739, offering a reasonable option for those considering building. Architectural and design fees are set at $19,000, tied with Washington, while construction costs are $240 per square foot, both of which are moderate.

New York ranks sixth with a composite score of 30.5. The average house sale price in New York is the lowest, at $458,072, However, New York stands out with the cheapest average land price per acre at $5,187, making it one of the most beneficial states for building a house. Despite the low land prices, architectural and design fees are quite high at $35,000, which could increase the overall cost of building. Construction costs are moderate at $275 per square foot, and utility hookup costs are $625. 

Colorado, with a composite score of 30.2, ranks seventh. The state’s average house sale price is $548,602, making it a relatively expensive state for homebuyers. Architectural and design fees are lower than in the states mentioned above at $16,000, and construction costs are also second lowest at $200 per square foot. The utility hookup costs are also among the lowest at $360. Land prices per acre are moderate at $23,781, offering a reasonable opportunity for those looking to build rather than buy.

Rhode Island ranks eighth with a composite score of 28.8, making it a state where building a home might be more advantageous. The average house sale price is $449,550, the lowest on the list. Land prices per acre are second highest after Massachusetts at $29,621, which could increase the cost of building a home. However, this is offset by lower architectural and design fees at $13,500 and moderate construction costs at $215 per square foot.

New Hampshire, with a composite score of 28.7, comes ninth. The average house sale price in New Hampshire is $463,091, which is relatively high but manageable. The state’s land prices per acre are moderate at $17,259. New Hampshire stands out with some of the lowest architectural and design fees at $12,000, significantly reducing the building cost. Construction costs are also low at $200 per square foot, making New Hampshire a strong candidate for those considering building a home.

Utah rounds out the top ten with a composite score of 27.9, making it one of the more affordable states to build a home. Utah’s average house sale price is $518,241, which is higher than some but still lower than many other states in this study. Land prices per acre are moderate at $17,542, and like New Hampshire, Utah benefits from very low architectural and design fees at $12,000. Construction costs are the lowest on this list at $155 per square foot, making building a home in Utah particularly attractive.