Is It Cheaper to Buy a New Home or Remodel?

Author:: Zachary Sodolak
Posted:: October, 18, 2024
Categories:: About Our Communities

Building a New Custom or Semi-Custom Home

Building a new home can feel like a big decision, but it offers financial and lifestyle benefits that remodeling cannot match. Whether it’s cheaper to buy a new home or remodel your current one depends on factors like material quality, location, and the scope of work required. On average, the cost to build a new home in Texas ranges from $180 to $300 per square foot, depending on your choices. Let's explore why building a new home could be the smarter investment.

Benefits of Building a New Home

Modern designs and layouts
At Kindred Homes, we specialize in open-concept layouts with timeless designs tailored to modern living. This means large kitchens, flowing spaces, and abundant natural light—elements that can be difficult to achieve through remodeling.
Brand-new infrastructure and warranties
When you build new, every part of your home—from the roof to the foundation and HVAC system—is new and covered under warranty. You won’t have to worry about expensive repairs, unlike with remodeled homes where older parts may need replacement soon after the remodel is complete. This is a key factor in determining if it's cheaper to remodel or buy a new home.
Choice of location
When building a new home, you have the freedom to choose where you want to live. Whether you want to be in an established community or build on a private lot, the possibilities are endless. Kindred Homes also offers a Build on Your Lot Program, giving you the flexibility to create your dream home exactly where you want.

Remodeling an Older Home

At first glance, remodeling an older home may seem like the more affordable option. However, many homeowners discover that remodeling vs. buying a new home comes with unexpected challenges and rising costs. Below are some typical remodeling expenses:

Full kitchen remodel: $50,000 – $100,000
Full bathroom remodel: $20,000 – $60,000
Outdoor patio remodel: $10,000 – $40,000

Beyond these upfront costs, is remodeling cheaper than buying a new home in the long run? Not always. Homes with outdated plumbing, roofing, or HVAC systems often require upgrades beyond cosmetic changes, leading to higher costs over time.

The Opportunity Cost of Remodeling

One of the biggest downsides to remodeling is that cosmetic upgrades don’t always increase the resale value enough to offset their cost. The real value of a home lies in essential components—such as the roof, HVAC system, foundation, and windows—not just the aesthetics. On average, homeowners can only expect a 67% return on their remodeling investment when they sell.

For example, if you spend $200,000 remodeling a home, you may only recover about $134,000 in resale value, meaning you’ll lose $66,000. Now consider putting that same budget toward a new build—you’ll avoid the losses and move into a modern home designed to your preferences. These factors make buying a new home often more cost-effective than remodeling.

Which is the Better Choice?

Is it more affordable to build a new home or remodel? In most cases, building a new home offers a better financial and lifestyle solution. While remodels can refresh your space, they often come with hidden costs, ongoing maintenance, and limited returns on investment. By contrast, a new home gives you modern amenities, warranty-backed infrastructure, and the chance to build exactly where you want.

So, is it cheaper to buy a new home or remodel? In most scenarios, building a new home provides better long-term value. Remodeling may seem like a quick fix, but it often leads to unexpected costs and only partial returns on investment. A new home allows you to enjoy modern designs, energy-efficient systems, and peace of mind, all without the hassle of ongoing repairs.

If you’re ready to stop wondering whether it’s cheaper to remodel or buy a new home, reach out to Kindred Homes today. Explore our floor plans, available communities, and Build on Your Lot Program—and take the first step toward creating the home of your dreams.