Comparing build vs. buy in this market
Florida’s real estate landscape is shifting, with rising inventory and softening prices creating new opportunities for buyers. Below, we compare building versus buying a home in today’s market, using the latest data to help you make an informed decision.
Cost Comparison: Building vs. Buying
Building a Home
- Average Cost: $270,000–$560,000 (excluding land) or $415,000+ with land, permits, and fees.
Buying a Home
- Median Existing Home Price: $410,900 (vs. $415,000+ to build).
| Factor | Building | Buying |
| Cost | Higher upfront costs (+ land, permits) | Lower immediate costs |
| Timeline | 4–12+ months (delays common) | 30–60 days (immediate move-in) |
| Customization | Full control over design/materials | Limited to existing layouts |
| Market Conditions | Labor/material shortages persist | Buyer-friendly: more negotiating power |
Key Market Trends Impacting Your Decision
- Inventory Growth:
- Single-family home inventory hit a decade high, with condos at 8.2 months’ supply (buyer’s market).
- Single-family home inventory hit a decade high, with condos at 8.2 months’ supply (buyer’s market).
Pros and Cons
Building a Home
Pros:
- Customization: Design every detail (e.g., energy-efficient features, hurricane-resistant materials).
Cons:
- Time and stress: Lengthy permitting, construction delays, and budget overruns.
Buying a Home
Pros:
- Cost savings: Median prices are lower than building costs in most regions.
Cons:
- Limited inventory: Specific features (e.g., accessibility) may be hard to find.
FAQs
Q: Is now a good time to buy in Florida?
A: Yes—rising inventory and price cuts give buyers leverage, especially for condos.
Q: How much more expensive is building vs. buying?
A: Building costs ~1.1% more on average ($415k vs. $410k median purchase price).
Q: Are there risks to building in Florida?
A: Yes—labor shortages, material delays, and strict hurricane codes can inflate costs.
Q: Which cities offer the best value for buyers?
A: Tampa ($445k median purchase vs. $555k build cost) and Orlando ($408k vs. $523k).
Why Red Door Homes of Florida?
We help clients navigate this evolving market with:
- Custom builds: Energy-efficient, hurricane-resistant designs tailored to your budget.
- Market insights: Identify undervalued existing homes or prime land for new builds.
Ready to explore your options? Contact us for a personalized cost analysis.