Building vs. Buying a Home in Hawaii: Which is cheaper?

Owning a home is a privilege that many people aspire to. There is a question that likely comes up for any potential homeowner: Is building a house cheaper than buying one? The housing market in Hawaii is seeing an increase in the number of people who are interested in building vs buying a home. Building a home allows you to customize it to get the exact features that make your house the perfect home. It is also a more affordable option for many.

TALL Builders is a construction and remodelling company based in Oahu. We are experienced in building custom homes using the design-and-build model. We have worked diligently for over 20 years to establish ourselves as industry-leading home builders in Hawaii.

The Hawaiian Housing Market

Over the past few years, house prices have increased exponentially. The limited number of houses available for sale is unable to keep up with the rising demand, resulting in astronomical home prices.

Compared to other states, land is generally more affordable in Hawaii, making the option of building a home more appealing.

Cost of Real Estate in Hawaii

Although the land prices do tend to be more affordable compared to other states, the available land is limited due to competition, land ownership disputes, and zoning laws. Being an island, there is only so much available land that can be used for the construction of houses.

Transporting building materials to Hawaii is also more costly. Additionally, the cost of living is high in Hawaii, with many residents struggling to keep up with the rising cost of houses. Given this, it makes sense that it is no wonder that many are beginning to question whether buying a house in Hawaii is a good investment.

How Much is a House in Hawaii?

When weighing the options for building vs buying a home, many Hawaii residents find that the scale tips in favor of building one. The state average price of homes is a little over $1 million.

This figure varies depending on the location of the home. A larger or beachfront house will be significantly more expensive than one that is further inland or smaller.

Cost of Building a House vs. Buying

The cost of building a house vs buying one is critical for potential homeowners. A study by StorageCafe looked into the best and worst states to build a home. Hawaii topped the list as the best state to build a home considering that the cost of building a home is around $551,000 compared to the over $1 million price to buy a family home – the most expensive of any state. So it costs almost twice as much to buy a house than to build one in Hawaii.

When calculating the cost of building a house in Hawaii, there are a few considerations that need to be taken into account. For starters, it is important to note that the labor cost is higher since it requires specialized skills to build a house that is compatible with the local terrain and climate. The choice of materials will also affect how much a house is in Hawaii. Using as many locally sourced materials as possible will be gentler on your wallet than imported ones.

Advantages of Building a Home

Besides the fact that it is cheaper to build a house in Hawaii than buy one, there are many other benefits that come with building.

• Large Outdoor Space – Many houses built in Hawaii have a large outdoor space that you can use for your family’s needs. The average lot size is 0.62 acres, which is almost double the national average. Whether it’s having the extra space for a lanai, gazebo, pool, outdoor kitchen, or garden, the extra space can be put to use in a way that works for you.
• Wide Lot Sizes – When you opt for building vs buying a home, another advantage is in the lot width. Since many lot sizes in Hawaii are wide as opposed to long, this provides more usable space, better lighting, and a greater sense of privacy. It also allows for more flexibility in the property’s layout and better curb appeal.
• Customization Opportunities – Your choice of building vs buying a home also needs to take into account the fact that you can choose the design and enhancement options you want when building. You can incorporate appealing and useful features, such as sustainability or design considerations that increase the utility and appeal of your home.

Designing a Custom Home with TALL Builders

Having a say in the design and building of your dream home is priceless. You’ll have the satisfaction of knowing you played an active role in the final outcome.

At TALL Builders, we follow a straightforward process when it comes to building custom homes. The first step is a free consultation. This gives us an opportunity to learn about your vision. We get to understand what your expectations for a home are and you get to ask any questions you may have about TALL Builders and our process. Once you’re satisfied with this, we come up with 2D and 3D renderings of the project.

We continue consulting with you to make adjustments that suit your requirements. Once this is finalized, we move to the construction process. When we’re done, we clean up the place and hand the home over to you. Our workmanship is backed by warranty to ensure top quality.

Related Article: Maximizing Your Property’s Value with an ADU in Hawaii – Complete Guide

Let’s Start Building Your Custom Home

The cost of building a house vs buying one is definitely worth it in Hawaii. Despite the higher upfront cost compared to the national average, it is more cost-effective to build in the long run. In addition to a lower cost, you will get the opportunity to have a large outdoor space on a wide lot size. Additionally, you will be able to customize your house to your liking and build your dream home.

Allow us to take the hassle out of your building project. Connect with us to begin building your custom house in Hawaii.