Thinking about living in Albion, WA but wondering if Pullman, WA might be the better option? At Jasper Homes, we help families and professionals explore both communities so they can make the best housing decision. While Albion offers quiet rural charm, Pullman—just 7 miles away—provides more amenities, housing choices, and long-term value.
Why Pullman, WA, Appeals to People Working in Albion
Even if your job or daily responsibilities are based in Albion, living in Pullman is both convenient and practical. Here’s why many homebuyers choose Pullman while still staying close to Albion:
Access to Services: Pullman offers healthcare at Pullman Regional Hospital, multiple grocery stores, shopping, and entertainment that Albion cannot match.
Job & Education Opportunities: Washington State University fuels Pullman’s economy, creating jobs in research, education, and tech. You can live in Pullman and still commute easily to Albion.
Cultural & Recreational Life: Pullman residents enjoy events like the National Lentil Festival, Cougar football games, and exhibits at the Jordan Schnitzer Museum of Art—activities not found in Albion.
Housing Options: From modern apartments to custom-built homes, Pullman has a broader housing market. Jasper Homes specializes in connecting buyers to properties that fit lifestyle and budget.
Easy Commute: The Pullman–Albion Road makes the 7-mile drive about 15 minutes, so living in Pullman while working in Albion is simple.
The Benefits of Living in Albion, WA
Albion shouldn’t be overlooked—it has a unique charm that appeals to many:
Quiet Rural Living: With just over 500 residents, Albion offers small-town peace and privacy.
Affordable Rentals: The average rent in Albion hovers around $1,234, making it more budget-friendly than Pullman.
Close to Nature: Nestled in the Palouse’s rolling hills, Albion is perfect for those who value gardening, outdoor hobbies, or a slower pace of life.
Tight-Knit Community: Fewer residents mean more familiarity and strong neighborly bonds.
Housing Market: Albion vs. Pullman
Albion Homes: Median home value sits near $253,700, but recent sales have averaged closer to $400,000—showing that demand is growing. Homes are often older, but buyers may find negotiation opportunities due to higher vacancy rates.
Pullman Homes: The median home value is higher at around $429,145, with recent sales near $530,000. While more expensive, Pullman offers greater housing variety and investment potential.
Comparison: Albion provides lower upfront costs, but Pullman’s real estate market offers more modern features, stronger resale value, and long-term growth.
The Jasper Homes Advantage
Choosing between Albion and Pullman depends on lifestyle. If you want quiet, Albion may be right for you. If you want amenities, opportunities, and housing options, Pullman is the smarter move.
At Jasper Homes, we specialize in Custom Homes near Pullman, WA, and across the entire Palouse region. We’ll help you find the perfect property, whether that’s a peaceful small-town home in Albion or a modern build in Pullman with more community benefits.
Are Homes Cheaper in Albion or Pullman?
Here’s where housing costs come into play, and Jasper Homes can help you weigh your options:
Albion Home Prices: The median home value in Albion is around $253,700 (based on recent estimates), with a median sale price of $400,000 as of April 2024 (up 48.7% from the prior year). This reflects a smaller market with fewer listings, often older homes built between 1970 and 1999. However, the vacancy rate is high (10.5%), suggesting weaker demand or oversupply, which could mean negotiation opportunities.
Pullman Home Prices: Pullman’s typical home value is higher, at $429,145 (Zillow, up 3% over the past year), with a median sale price of $530,000 in January 2025 (up 15.3% from last year). Homes here sell for about 2-3% below list price and take longer to sell (around 112-139 days), indicating a less competitive market than some urban areas. You’ll find a mix of established and newer properties, often with more modern features.
Comparison: Homes in Albion are generally cheaper in terms of median value ($253,700 vs. $429,145), but Pullman’s prices reflect its larger market, better amenities, and investment potential. Albion’s recent sale price spike ($400,000) suggests its lower base value might not always translate to a bargain at closing. Renting in Pullman averages $1,749, higher than Albion’s $1,234, but aligns with its enhanced offerings.
Jasper Homes’ Take: While Albion might save you upfront on a purchase, Pullman’s housing market offers greater variety and long-term value—especially if you’re looking for a home that grows with you. Plus, with Jasper Homes’ expertise, we can find you a Pullman property that balances cost and quality, making the slight price difference worthwhile.
Pullman, WA is more than just a charming college town—it’s a thriving community anchored by Washington State University (WSU). With a population of nearly 33,000 and a median home price of $530,000 as of January 2025 (Redfin), Pullman has become one of the most desirable places to live in the Palouse region.
Unlike smaller neighboring towns like Albion, Pullman offers a blend of career opportunities, cultural life, and community amenities—making it an ideal choice for WSU faculty, students, staff, and families who want to enjoy both stability and growth.
Five Reasons to Buy or Build a Home in Pullman
1. Access to Amenities & Services
Living in Pullman means quick access to Pullman Regional Hospital, high-quality schools, shopping centers, grocery stores, and restaurants. Entertainment options like movie theaters, coffee shops, and gyms are all within minutes—no long drives required.
2. Career Opportunities in Pullman
Pullman’s job market is powered by WSU and leading employers like Schweitzer Engineering Laboratories (SEL). With over 2,000 active job listings in early 2025 across education, healthcare, engineering, retail, and technology, Pullman offers diverse career paths far beyond what’s available in rural communities like Albion.
3. Public Transportation & Infrastructure
Pullman Transit serves the city and WSU campus with convenient bus routes, making commuting simple for students and professionals. Excellent road systems, reliable internet connectivity, and access to nearby airports make Pullman attractive for both remote workers and daily commuters.
4. Vibrant Social & Cultural Life
As a WSU college town, Pullman offers Division I sports, concerts, festivals, art exhibits, and a lively downtown scene. Whether you’re cheering on the Cougs at Martin Stadium, attending a cultural festival, or enjoying Palouse trails, Pullman provides a lifestyle full of activities.
5. Real Estate Value & Investment Potential
With steady appreciation (up 15.3% from last year), Pullman’s housing market remains strong. Whether you’re purchasing a family home or building a custom house, Pullman real estate offers excellent long-term investment value compared to rural towns.
Pullman vs. Albion – Which Is Right for You?
Albion, WA Snapshot
Population: ~509 (small rural community)
Economy: Primarily agricultural, with limited local jobs
Housing: Median price $253,700 (lower cost, but fewer amenities)
Employment: Scarce job postings; most residents commute to Pullman or Colfax
Pullman, WA Snapshot
Population: ~32,900, driven by WSU and growing employers
Economy: Diverse, anchored by WSU and SEL, plus retail, healthcare, and tech
Housing: Median price $530,000, reflecting stronger demand and long-term stability
Employment: 1,400+ active job listings on Indeed and 2,000+ on LinkedIn as of 2025
Lifestyle: Rich with cultural events, sports, dining, and community life
Bottom line: Albion may be closer to farmland, but Pullman delivers better career prospects, stronger property values, and a college-town energy that simply can’t be matched.
Why Choose Jasper Homes in Pullman, WA?
At Jasper Homes, we specialize in helping families, WSU professionals, and new homeowners find or build their dream home in Pullman. Whether you’re moving here for a job at WSU, beginning a new career with SEL, or simply want the vibrancy of a thriving college community, Pullman offers the perfect balance of opportunity and lifestyle.
We’ll guide you through every step—finding the right neighborhood, planning your custom build, and maximizing long-term value in Pullman’s competitive housing market.
Ready to Make the Move to Pullman?
Don’t settle for the limitations of rural towns like Albion when Pullman offers so much more. With strong job growth, cultural vitality, and a welcoming WSU community, this is where your future belongs.
Considering a Move to Colfax, WA? Here’s Why Pullman Might Be the Better Choice
If you’re planning a move to Colfax, WA, maybe for a new job or family obligations, you’re likely weighing your housing options. At Jasper Homes, we help families find not just a house, but a lifestyle that fits their long-term needs. And while Colfax offers undeniable small-town charm, living in nearby Pullman, WA—just 15–16 miles south in Whitman County—can give you broader opportunities without a difficult commute.
The Colfax-to-Pullman drive is a short 20 minutes along US 195. That means you can enjoy Pullman’s diverse amenities, cultural scene, and thriving real estate market while still working in Colfax. It’s the best of both worlds.
Why Pullman, WA Beats Colfax for Long-Term Living
1. More Amenities and Opportunities
Pullman, home to Washington State University (WSU), has a population of about 34,000 compared to Colfax’s 2,800. That size difference translates to more dining, shopping, medical services, and entertainment—perfect if you’re raising a family or want easy access to modern conveniences.
2. Education and Culture
From Cougar football at Martin Stadium to art exhibits at the Jordan Schnitzer Museum, Pullman offers cultural and educational resources Colfax can’t match. WSU creates year-round energy through events, workshops, and performances.
3. Career Flexibility and Growth
Pullman’s economy goes beyond agriculture. Education, research, healthcare, and even emerging tech give the area more career paths than Colfax, which relies heavily on its agricultural roots.
4. Easy, Scenic Commute
The 15.5-mile drive from Colfax to Pullman cuts through the rolling Palouse hills—straightforward, beautiful, and stress-free. Public transit is also available via the Starline Collection bus (about 32 minutes), giving you options beyond driving.
What Colfax, WA Brings to the Table
Colfax is the Whitman County seat, and it delivers true small-town appeal:
Historic charm in its Victorian-era architecture and landmarks like the Perkins House.
Outdoor escapes at Steptoe Butte State Park or along the Palouse River.
Tight-knit community spirit, where neighbors know your name.
It’s slower-paced and peaceful—an excellent fit for those who value quiet living.
Comparing Real Estate: Colfax vs. Pullman
Housing costs differ notably between the two towns.
Colfax, WA homes: More affordable, typically $200,000–$250,000 for single-family houses. Inventory can be limited, and many options are older homes or fixer-uppers.
Pullman, WA homes: Median prices usually fall in the $300,000–$400,000 range, reflecting higher demand and a stronger resale market. Housing options include modern family residences, apartments, and historic homes.
Colfax offers lower entry prices, but Pullman provides stronger long-term value—especially for families who want access to schools, recreation, and a vibrant community.
Pullman, WA: The Smart Move for Whitman County Living
Whether you’re moving to Colfax for work or just considering Whitman County real estate, Pullman deserves serious consideration. At Jasper Homes, we believe Pullman strikes the perfect balance: close to your job in Colfax but full of opportunity, energy, and lifestyle benefits that grow with you.
Build Your Dream Home in Clarkston, Washington – Where River Living Meets Small-Town Charm
Why Clarkston, WA, is the Perfect Place for Your Custom Home
1. Natural Beauty on the Snake River
Clarkston sits where the Snake River winds through rolling hills and valleys, creating some of the most breathtaking scenery in Eastern Washington. With its mild climate, longer growing season, and four-season beauty, Clarkston offers the perfect backdrop for gardening, boating, or enjoying the outdoors year-round.
2. Small-Town Living with Big Connections
Life in Clarkston means a welcoming small-town atmosphere, but with close access to the Quad Cities region — Lewiston, Pullman, Moscow, and Colfax. Families and professionals alike benefit from safe neighborhoods while staying connected to higher education, healthcare, and vibrant cultural opportunities.
3. Riverfront Lifestyle
In Clarkston, life truly flows at the pace of the Snake River. Residents enjoy boating, fishing, paddleboarding, and walking trails along the waterfront. Few cities in Washington can offer this kind of easy river access — and Jasper Craft Homes can design a home that makes the most of it.
4. Affordable Living Without Sacrificing Quality
Compared to western Washington or nearby northern Idaho, Clarkston gives you more house, more land, and more value for your dollar. Washington’s no state income tax policy, paired with reasonable property taxes, makes Clarkston especially appealing for retirees, young families, and remote professionals.
5. A Convenient, Connected Location
Positioned at the crossroads of WA-129 and US-12, Clarkston is only minutes from the Lewiston-Nez Perce County Airport and within driving distance of Washington State University and the University of Idaho. Whether you’re commuting, traveling, or working from home, Clarkston puts everything within reach while avoiding the congestion of bigger cities.
6. Strong Schools & Growing Infrastructure
The Clarkston School District continues to invest in modern facilities, giving families confidence in a solid local education system. The area also offers expanding healthcare, retail, and community development — making it a city that’s steadily on the rise.
7. Custom Homes Designed for Clarkston Living
At Jasper Craft Homes, we specialize in site-specific custom homes that showcase the best of their surroundings. Whether you envision a modern farmhouse on acreage, a Snake River waterfront retreat, or a legacy home with panoramic views of the hills, Clarkston offers the perfect canvas for your dream home.
8. Adventure and Serenity Combined
From Clarkston, you’re just minutes from Hells Canyon, Asotin County hiking trails, and year-round outdoor adventure. It’s the best of both worlds: an active lifestyle in nature combined with the quiet pace of small-town living.
9. A Place Where Your Custom Home Belongs
Building in Clarkston means more than just buying a house — it’s about putting down roots in a welcoming community where neighbors know each other and the scenery inspires daily life. Jasper Craft Homes has helped many families create their perfect homes here, blending craftsmanship with the unique character of Clarkston, WA.
Build Your Custom Home in Clarkston, WA with Jasper Craft Homes
Whether you’re relocating, retiring, or simply ready to design a home that reflects your lifestyle, Jasper Craft Homes is here to bring your vision to life. With premium craftsmanship and deep knowledge of the Clarkston area, we’ll help you build a home that’s as functional as it is beautiful.
Build Your Dream Home in Lewiston, Idaho with Jasper Craft Homes
Lewiston, ID is more than a quiet river town—it’s a growing hub of opportunity in the Inland Northwest. Known for its breathtaking natural beauty, strong community values, and affordable land, Lewiston is attracting families, professionals, and retirees alike. At Jasper Craft Homes, we specialize in building custom homes in Lewiston, ID that fit your lifestyle, your budget, and your vision.
Why Choose Lewiston, ID for Your Custom Home?
Scenic Beauty in Every Direction
Lewiston is located at the confluence of the Snake and Clearwater Rivers, surrounded by rolling hills and valley views. Outdoor lovers thrive here, with world-class fishing, hiking at Hells Gate State Park, and endless opportunities to explore right outside your door.
Affordable Land and Room to Build
Compared to Coeur d’Alene, Spokane, or Pullman, Lewiston land prices are far more accessible. This means you can build a feature-rich custom home—designed with your must-haves—without stretching your budget. From single-level ranch-style homes to modern two-stories with panoramic windows, Lewiston offers the space and flexibility to design freely.
A Growing Economy with Real Momentum
Lewiston’s economy is expanding with employers like Schweitzer Engineering Labs, Clearwater Paper, and strong healthcare and education sectors. The University of Idaho in nearby Moscow adds stability and innovation to the region, giving Lewiston long-term economic promise.
A Community That Values Craftsmanship
Lewiston is small enough to know your neighbors but big enough to support quality living. That’s why homeowners here choose Jasper Craft Homes—we design houses with timeless layouts, durable finishes, and smart features like solar-ready roofing and tech-driven HVAC.
Family-Friendly Lifestyle
With top-rated schools, low crime, and a safe, friendly atmosphere, Lewiston is a great place to raise children. Retirees will also find a welcoming community, plenty of clubs, and accessible healthcare.
Idaho’s “Banana Belt” Climate
Unlike much of Idaho, Lewiston enjoys mild winters and dry, sunny summers. That means more time outside, less shoveling, and homes that age better with less weather stress.
Convenient Access Without Big-City Congestion
Spokane is just two hours away, while Pullman and Moscow are within 40 minutes. You’ll have all the essentials—regional airport, healthcare, restaurants, schools—without the headaches of traffic and sprawl.
Why Some Homebuyers Still Choose Pullman Over Lewiston
While Lewiston custom homes are often more affordable upfront, Pullman, WA can offer stronger long-term appreciation and a more vibrant community feel. Washington’s lack of state income tax is another financial advantage, which may offset the initial difference in home prices. For families working in Lewiston but wanting a future-proof lifestyle, Pullman is a smart alternative.
Build Your Future with Jasper Craft Homes
At Jasper Craft Homes, we’re passionate about designing homes that reflect your goals—whether in Lewiston or Pullman. Our team brings decades of expertise and a personalized approach to every project. From planning to finishing touches, we ensure your home isn’t just built—it’s crafted for your life.
Build Your Dream Home in Moscow, Idaho — Where Palouse Charm Meets Modern Craftsmanship
At Jasper Craft Homes, we specialize in building custom homes in Moscow, ID that blend timeless design, modern comfort, and the spirit of the Palouse. Whether you’re relocating for work, investing in the community, or planting roots for your family, we’re here to make Moscow your perfect home base.
Why Choose Moscow, Idaho for Your Custom Home?
🌲 1. Clean Air, Green Living on the Palouse
Moscow sits in the heart of the rolling Palouse Hills, known for stunning views, fertile farmland, and a culture of sustainability. Living here means waking up to clean air, outdoor trails, and a community that values green living.
🧠 2. University of Idaho Advantage
As the proud home of the University of Idaho, Moscow offers a lively, intellectual environment. Professors, students, and entrepreneurs add energy and stability to the local economy. University towns like Moscow are also known to hold real estate value, making your custom home a smart investment.
🛠️ 3. Streamlined Building & Growth-Friendly Zoning
Moscow’s city planning supports balanced growth while protecting natural spaces. Local building departments work closely with developers, making the custom home construction process in Moscow smooth and efficient compared to larger cities.
🧑🌾 4. Farm-to-Table Living & Local Flavor
Moscow is famous for its Downtown Farmers Market, thriving local breweries, and artisan food scene. Choosing a custom home in Moscow puts you close to fresh produce, handcrafted goods, and a community that loves supporting local businesses.
🧒 5. Family-Friendly & Safe Community
Ranked among Idaho’s safest cities, Moscow is ideal for families. Quality schools, youth sports, and community events provide a nurturing environment where kids thrive and parents enjoy peace of mind.
🧘 6. Balance of Work and Lifestyle
With fiber-optic internet, flexible job opportunities, and outdoor recreation all minutes away, Moscow offers a rare balance of productivity and play. Imagine finishing your workday and heading straight to the trails, ski slopes, or a cozy downtown café.
🏠 7. A City That Values Quality Homes
Residents of Moscow care deeply about quality—whether it’s education, lifestyle, or the houses they build. At Jasper Craft Homes, we align with that vision by delivering energy-efficient, high-quality custom homes in Moscow, ID designed to last generations.
The Jasper Craft Homes Difference in Moscow, Idaho
When you choose us as your builder, you’re choosing more than a house—you’re choosing a partner who understands Moscow’s unique character. Our services include:
Custom architectural design tailored to your family’s lifestyle
Energy-efficient systems and sustainable building practices
Clear timelines and transparent communication
Layouts designed to capture the beauty of the Palouse
With 25+ years of experience across the Inland Northwest, Jasper Craft Homes is ready to build your dream home in Moscow, Idaho.
Considering Nearby Pullman, WA?
If you’re moving to the Palouse for work or school, you might also explore Pullman, WA, just 9 miles from Moscow. Pullman offers a larger university-town vibe with Washington State University, expanded job opportunities, and a vibrant local economy. Some families prefer Pullman for its amenities while still enjoying close proximity to Moscow’s charm.
Ready to Build Your Moscow, ID Custom Home?
At Jasper Craft Homes, we bring craftsmanship, efficiency, and local expertise to every project. Whether your dream home is a modern farmhouse overlooking the Palouse or a family-friendly build near downtown Moscow, we’re here to make it a reality.
Prices of materials used in residential construction have been flat or even declined in some cases, providing welcome relief to home builders. But overall, prices of building materials are still far above their pre-pandemic levels, and the impact of those elevated prices can be seen in unexpected places.
Where are Building Material Prices Now?
Earlier this year, NAHB reported that building material price growth slowed dramatically in 2023, in line with slowing inflation in the broader economy. Prices still grew, though, and were still elevated from post-pandemic surges.
“The only major building material to see price recovery is lumber,” said Jesse Wade, NAHB director of tax and trade policy analysis. “At the end of 2023, lumber was trading about 20% higher than in 2019, but with further price declines in 2024, the price is roughly back to normal. This is after surges in 2020-21 that saw lumber prices rise more than 300%.”
For other build materials categories, prices are still far above their pre-pandemic levels.
Gypsum (drywall): Prices decreased 2% over 2023, after increasing 44.6% over the two years ending December 2022.
Ready-mix concrete: The average price of concrete increased 11.2% in 2023 and 10.3% in 2022, combining for the second-largest two-year increase since 2000.
Steel mill products: Steel mill products annual average prices declined 16.1% in 2023 after increasing 8.7% in 2022 and the historic 90.3% increase of 2021. Prices are 31.2% lower than their 2021 peak but remain 65.1% higher than they were in January 2020.
Why Did Building Material Prices Rise So High?
It’s easy to blame the pandemic for all our woes, and it certainly didn’t help building material prices. But material prices were pointed higher long before the first mention of COVID.
Beginning in late 2017 and continuing for most of 2018, building material prices grew more than 5%, mostly driven by trade disputes for materials sourced overseas.
“In the spring of 2020, supply and demand forces took over the lumber market,” said Wade, who continually tracks and analyzes short- and long-term trends in commodities pricing. “Home builders got back to work very quickly, and people stuck at home decided to invest in home repairs, renovations and upgrades. So lumber prices soared. But it wasn’t until early 2021 that other material prices began to rise.”
What Causes the Rise in Material Prices?
Supply and demand: Although lumber was the most sensitive material to demand, other materials quickly followed, and for good reason. There were more homes started in 2020 than in 2019, even with all the lockdowns. The number of homes started in 2021 was a 15-year high. In short, there was high demand for materials in 2020 and 2021.
Broader inflation: When the general cost of goods and services rises across the economy, it inevitably impacts the price of construction materials.
Global factors: Factors such as geopolitical tensions, trade disputes and changes in international trade policies can disrupt supply chains and lead to price instability.
Sustainability initiatives: There’s a growing demand for eco-friendly, sustainable building materials and green practices in the construction industry. Although this is a positive trend for the environment, it can put pressure on costs as these specialty materials often come with a higher price tag.
How Do High Material Costs Impact Housing?
Aside from simply making it more expensive to build — and thus, buy — a home, rising material prices can have insidious effects on the housing market.
Home insurance premiums have soared over the past year. One of the primary drivers of the rate increases is the cost of building materials used to repair homes after claims. Although building material prices have been growing for years, we are just starting to see the impact on the insurance market.
Material cost fluctuations also make it more difficult for appraisals to reflect the true value of the home, because costs are rising too rapidly and builders are having to compensate on the front end of construction by decreasing amenities available in the home. Inaccurate valuations can cause major issues in financing for home buyers.
At a time when mortgage rates and home prices are at multi-decade highs, the rising insurance premiums and uneven valuation environment makes housing attainability much harder.
From building to buying, home prices across the country have soared to new heights. The national average cost to build a house is about $329,000, not including land. That’s for an average-sized house of 2,594 square feet, which boils down to $126 per square foot. This may seem high, but the price to buy an existing home has skyrocketed recently, too. Currently, the median home price in the U.S. is $425,000. While the median list price is down 1% compared with the same time last year, the median listing price per square foot increased by 36% compared with September 2019, while the price per square foot grew by 50.8%.In short, it may cost you more today to buy an old house than build a new one.According to the National Association of Home Builders, the pandemic’s disruption of supply chains has caused lumber costs to remain volatile, though prices have stabilized somewhat compared to previous peaks. Framing lumber that once set builders back about $1,200 per 1,000 board feet is now running around $850, still a significant increase but lower than the highs seen earlier.”The pandemic has been a big source of unexpected shifts in supply and demand for all kinds of goods,” says Danielle Hale, chief economist of Realtor.com®. “As a consumer, you’ve likely experienced this in the form of empty shelves that didn’t have toilet paper or yeast or chicken.” Given that a house is much bigger (and more expensive) than rolls of toilet paper, it’s understandable that new-construction homes, and the materials to make them, are suffering from an unprecedented price increase that has many homebuyers and builders reeling from sticker shock. “This unprecedented price surge is hurting American homebuyers and home builders, and impeding housing and economic growth,” said NAHB Chairman Chuck Fowke. “These lumber price hikes are clearly unsustainable. Policymakers need to examine the lumber supply chain, identify the causes for high prices and supply constraints, and seek immediate remedies that will increase production.”Still, the pandemic alone isn’t to blame for the high cost of building a house. Here’s more on why new construction costs so much, and how it compares with buying a preexisting home. Wondering if it’s cheaper to build a house? First, it’s important to understand that there are a few main costs involved in the construction of a home, says Andy Stauffer, owner and president of Stauffer and Sons Construction. Sure, each time you build a home, costs are a little different, but here are the biggies:Also keep in mind that the cost to build a home can vary widely based on where you live.Now you know the basic cost to build a home, but the expenses don’t end there. Here are a few extra costs you’ll need to be aware of that aren’t factored into the above price:”When the pandemic began to unfold, builders faced the prospect of buyers disappearing,” says Hale. “And while buyers did pull back early on, the housing market quickly did a 180 with buyers coming out en masse to find a better fit at home.” Now, as the economy has opened back up, builders are struggling to balance strong demand with supply chain crunches beyond lumber that are leading to higher prices, causing some homebuyers to hold off on moving forward with new construction. But it’s not all doom and gloom. “I expect that we’ll see new home sales eventually pick up in a more gradual manner as builders work through supply chain challenges and the development pipeline normalizes,” Hale adds.Although it may cost you more today to buy an old house than build a new one, you save yourself the headaches that inevitably come with construction, along with the long wait before you move in.On average, the time it takes to build a house is about six to nine months. Still, building a house does have its advantages. Everything from pipes to the heating and cooling systems will be new. That means no costly repairs in the near future—and so a newly built home could end up costing less in the long run.All in all, it’s smart to weigh the pros and cons of new versus old construction—and the price you pay for construction costs versus an existing home is only the beginning. Here we lay out everything a homebuyer needs to know about buying an existing home compared with building one from scratch or having it built by a general contractor.There are actually two things to consider: the upfront costs of buying versus building, and the ongoing maintenance costs.
If you buy an existing home: According to the latest figures, the median cost of buying an existing single-family house is $355,000. For the average 1,500-square-foot home built before the 1960s, that comes to about $237 per square foot. That said, the exact price can vary widely based on where you live. (Go to realtor.com/local to see the price per square foot in your area.) (Go to realtor.com/local to see the price per square foot in your area.)
If you build a new home: Building a house will set you back an average of $296,652, plus about $35,872 due to the pandemic-related uptick in material costs. But you may get a lot more for your money. For one, new construction is usually more spacious, with a median size of 2,594 square feet—so the cost to build per square foot is actually lower than the cost per square foot of existing homes.Another advantage of having a builder construct a custom home is you pay for only what you want, whereas an existing home may have interior and exterior features (e.g., a finished basement or a basketball court) you’ll pay a premium for, even if you don’t want them. But if an older house happens to be your dream home the way it is, that may be the more bargain-friendly route.Last but not least, by building your own house, you get to design it to your exact specifications. If you have very clear ideas about how you want your home to look, this blank slate could be worth every penny.
If you buy an existing home: Older homes have more wear and tear, which means certain things may need more maintenance—or, if they’re on their last legs, replacement, points out Michael Schaffer, a broker associate at Keller Williams Integrity Real Estate LLC.Naturally, the cost of this upkeep isn’t cheap, so make sure you know the age of the main items. For example, the average furnace is expected to last 20 years and will cost $5,000 to replace. The typical HVAC system lasts 15 years and costs $8,000 or more to replace.Another biggie is the roof: The average shingled roof holds up for about 25 years. If you need to replace roofing, you’re looking at a bill starting at $9,000. Plumbing and septic systems can go for some time without a problem, but when something goes wrong, it’s an emergency.With an existing home, unless you step into a high-end home with everything you want, you may want to start changing things, even if they are still functional. Home improvement shows make it seem simple to change countertops and flooring, or even overhaul floor plans. When you’re paying for material that’s shot up in price recently and labor costs for plumbing and drywall work, you may start to think your total cost might have been less paying a builder for a custom home in the first place.
If you build a new home: Considerably less upkeep is one of the primary reasons to build your own single-family home, because everything from major appliances to the HVAC system is new and under warranty. In fact, sometimes the entire home is protected for up to 10 years because a builder generally offers a construction warranty “for any problems that arise,” says Schaffer. Your interior and exterior maintenance outlay for a decade is potentially zero dollars. That can make up for some home construction costs per square foot that you paid by opting for a custom home.
If you buy an existing home: A major perk of older homes is mature landscaping with large trees and established plantings. That may not seem like a big deal until you consider that the U.S. Forest Service estimates that strategically placed mature trees can add tens of thousands of dollars to a property’s value and save up to 56% on annual air-conditioning costs.
If you build a new home: Builders often do little or no landscaping to new construction. It may take thousands of dollars—and many years—to get the yard you want. For instance, one 6- to 7-foot-tall red maple will cost about $99.95 (if you plant it yourself), which will then grow 2 to 3 feet a year. According to HomeAdvisor, the cost of adding completely new landscaping ranges from $1,400 to $5,700-plus.
If you buy an existing home: The latest U.S. Census found the median age of American houses to be 46 years old as of 2020. Older construction means dated windows and appliances—dollars flying out the window on wasted energy expense.
If you build your own home: Recent construction almost always beats older homes in energy efficiency, says Kyle Alfriend of the Alfriend Real Estate Group Re/Max in Ohio. Homes built after 2000 consume on average 21% less energy for heating than older homes, mainly because of their increased efficiency of heating equipment and building materials. This translates into reduced energy expense every month, even with the higher square footage in many newer homes.”However, often the regulatory requirements on new construction are stricter than existing buildings,” says Hale. “This can mean you enjoy better energy efficiency, but these requirements can also drive up the price of new homes and mean that they take longer to build.”
If you buy an existing home: The nice thing about old homes is that there’s context to your purchase: You can research the home’s previous sale prices, as well as prices of similar homes in the area (known as comparables, or comps) to get a feel for whether prices are rising or falling in your area. If the prices for your home and others in the area have been steadily rising, odds are decent that the trend will continue, which bodes well for you if you decide to sell later on.
If you build a new home: New house construction, particularly in up-and-coming neighborhoods, can be more of a gamble. Without a proven track record of lots of comps, there just aren’t enough data points to really know what could happen down the line. However, some buyers in hot markets are seeing incredibly quick jumps in their new-construction property value.
The cost per square foot of a single-family home declines systematically as the home becomes larger, according to NAHB analysis of two recent data sources. In microeconomics, unit costs that decline as a business operation increases in size are called economies of scale.
In home building, economies of scale may exist in several forms. It is conceivable, for instance, that homes cost less if they are built in larger subdivisions, or by larger companies, where design costs may be spread over a large number of production units. This post, however, focuses on economies of scale at the level of an individual home. In other words, does cost per square foot decline, all else equal, as a home increases in size?
The answer is yes, according to NAHB tabulation of data from the Survey of Construction (conducted by the U.S. Census Bureau with partial funding from the Department of Housing and Urban Development). Last Friday’s post reported on how the sale price per square foot of new single-family detached homes varies across time and geography. The chart below shows how it varies with the size of the home (measured in square footage of finished floor space). It is easy to see that the median price declines systematically, from a high of $200 per square foot for homes under 1,200 square feet to a low of only $132 per square foot for homes with 5,000 square feet or more.
There could be several reasons for this. A conventional explanation is that some components of construction cost—for example, design, regulatory and waste disposal costs—may be more or less fixed and not change much with house size.
The above sale price numbers are calculated after subtracting the value of the improved lot, but do not otherwise control for differences in quality or amenities present in the homes. One of the private services that does carefully control for quality and amenities when estimating construction costs per square foot is RSMeans. The chart below shows the base cost per square foot for a two-story home in each of the four RSMeans quality tiers: Economy, Average, Custom and Luxury.
Within each tier, characteristics of the home (other than square footage) are held constant. The “Average” two-story home, for instance, has a simple design from standard plans, no basement, a kitchen, single full bathroom, asphalt shingles on the roof, wood framing, wood siding, gypsum wallboard interior, and average quality materials and workmanship. As in the previous chart, cost per square foot declines systematically as the house gets bigger. Although the rate of decline varies, at the low end of the size scale, doubling the size of the home reduces the base cost per square foot by somewhere in the neighborhood of 30 percent. Interested readers may consult RSMeans for further details.
The bottom line is that economies of scale are ubiquitous in new single-family homes throughout both the Census sale price and private cost estimating data. This is significant due to the volume of queries NAHB fields about construction costs. Almost invariably, the queries ask for cost per square foot. To avoid large errors, it is important the requesters realize that the number will change depending on the size of the home. If you apply cost per square foot for a 3,000 square-foot home to a home with only 1,500 square feet, for instance, you will drastically underestimate the home’s total cost. Ideally, this post will be able to serve as a reference in these situations.
When you choose Jasper Homes, you’re partnering with Pullman’s #1 Construction Company, a team dedicated to your project from start to finish—and beyond. Our post-construction services and warranty support are designed to give you total peace of mind.
We provide a custom warranty that acts as a safety net, covering workmanship, materials, and essential systems like plumbing and electrical. Any issues that arise after you move in are our priority, and we’ll work to find a swift resolution.
Why Our Post-Construction Support Stands Out
Beyond the warranty, we offer services like post-move-in walkthroughs and ongoing maintenance support. These services are our way of ensuring your home remains in peak condition and that we continue to be your trusted resource long after the last nail is hammered. This dedication to lasting quality and client relationships is what makes us a leader in the Pullman construction industry.
Start your dream home on the right foundation. Contact Jasper Homes today, where your vision is in expert hands.
