Buy or build in Denton…Which is cheaper?, by Janet Petrozelle.

Buy or build in Denton… Which is cheaper?

By Janet Petrozelle

Deciding whether to buy or build a house is a personal decision triggered by several factors. Building means waiting till the whole process is over. On the other hand, purchasing an entirely built home will be followed by moving in almost immediately, thus saving time.

1. THE BUYING PRICE OF HOMES IN DENTON

Denton is located in Texas and has approximately nine neighborhoods. It is a rapidly growing city with houses that range from $23K to $4.2 M depending on where the house is located. Houses found in Denton are 3-bedroomed houses, multistorey, or condos. The median home listing costs around $170K. Year over year trend for houses in Denton is higher by 17%.

2. THE BUILDING PRICE OF HOMES IN DENTON

cost of buildings depends on the location, the size of the building constructed, and the customization required during the building process. The average site work and land cost range from $90 to $200 per square foot. The building price also depends on whether the house is built with a standard grade of materials, ranging from $83-$138 per square foot. Premium grade construction costs between $125 and $155 per square foot, while luxury construction costs about $165 to $185 per square foot.

3. MAIN COSTS OF BUILDING WORKS

Construction costs vary with location, the material used, unique features to be included, and labor costs paid to workers.

Building materials usually are 50% of the total building costs. They include lumber, concrete, roofing siding, and flooring.

Building costs also involve hiring laborers to perform activities such as fitting electric cables and plumbing pipes. Laborers are paid differently depending on the location of the building being put up. Construction managers are paid between $3020-$48000, and other workers are paid differently depending on the work type.

The cost of building is usually affected by various house factors such as size, location, and customization of the house. Larger-sized homes are more expensive than small-sized houses. In Danton, building costs range from $70-$150 per square foot. Location affects building in homes because areas are associated with the well-off and thus more expensive to construct. Customization is when one constructing a house prefers having a particular type of door or flooring with a different cost. For example, wood flooring may be more expensive than tile floors.

4. DIFFERENCE BETWEEN BUYING COST AND BUILDING COST

In Danton, the cost of building is researched to be 40% of the total buying cost of a new price. When the housing market is competitive, the general building cost is way lower than buying a house in the long and short term. Although building means it may take some time before moving in, one can move in immediately upon purchasing.

After Covid 19 was declared a pandemic, Danton was affected like every other nation. Over the last two years of economic recovery, Danton has experienced increased demand for houses compared to the market’s supply and is termed a seller market. Covid 19 affected the already built homes and those in construction stages due to increased construction costs. After Covid 19, fuel and gas costs increased, affecting almost every commodity and rising prices. Government regulation also led to increased costs.

Houses sold after the Covid 19 are thus more expensive; the places have recorded increased prices yearly. Like in other states, most homes are sold for more money than the listed costs. Building cost is also high compared to previous years.

5. THE CURRENT STATE OF NEW CONSTRUCTION NATIONALLY.

Despite the many challenges brought by Covid 19, Denton is still an active market. There are available real estate entrepreneurs that help buyers get houses and sellers sell their homes.2020 was a year when the Danton housing market was shallow. A study shows that it was lower than in 2012, which initially had the lowest number of houses sold. Danton has demonstrated improvement in the last two years. Currently, the median market days for housing is 32 days which is a lower number compared to 2021.

Although Danton continues to experience high prices, it does not have proper demographics related to income that support the price increment. House prices are estimated to continue escalating even soon. The rates are currently above 4% due to monetary policies in the United States. Buyers are always encouraged to perform proper inspections, especially if the home is not newly constructed. Builders are expected to build houses of a good standard so they can still be in good condition for several years. Good-quality houses are an added advantage since they sell out fast. The housing market is currently facing high inflation due to reckless policies in the U.S., also leading to high house costs.

Generally, buying or building is a personal decision of a person needing a house. It depends on whether the owner will use the house for a short or extended period and even the type of house the owner intends to live in.