Do You Live in One of the Cheapest Places to Build a House?
No matter which state you live in, building a home is not cheap — but it's certainly more affordable in some states compared to others. And if you live in a state with a high cost of living, you might face higher building costs as well.
The study found that there's a correlation between states with a high cost of living and states where it's more expensive to build a home. For example, Hawaii, California, Massachusetts, New York and Alaska have the highest cost of living in the U.S., according to the Missouri Economic Research and Information Center. And all five of those states are among the six most expensive states to build a home.
Meanwhile, a few of the states with the lowest cost of living — Oklahoma, Mississippi, Arkansas and Michigan, for example — are also among the cheapest states to build a home.
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Methodology: To determine the least and most expensive states to build a home, GOBankingRates looked at three factors: 1) the average cost to build a new one-story, 1,800-square-foot home with a half-finished basement, sourced from the Lincoln Institute of Land Policy; 2) the average cost to build a house of all sizes in the three largest cities in each state, sourced from National Association of Home Builders and Sperling's Best Places; and 3) the mean hourly wage for construction laborers, sourced from the Bureau of Labor Statistics.
Photo credit: GO Banking Rates