Is It Cheaper to Build Than Buy a Home in 2025?

Back in 2021, building a home felt like a luxury dream. Now, in 2025, it’s becoming a real option for more people - not because it’s easy, but because buying one has gotten even harder. If you’re wondering whether it’s cheaper to build than buy right now, the answer isn’t simple. But it’s not what you think.

Building a home isn’t cheaper because materials are cheap - it’s cheaper because homes for sale are overpriced

In Halifax, the average resale home sold for $520,000 in October 2025. That’s down from $610,000 in early 2023, but still 35% higher than pre-pandemic levels. Meanwhile, the cost to build a 2,000-square-foot, three-bedroom home here has stayed steady at around $410,000 - including permits, land prep, and basic finishes. That’s not a typo. You can build a brand-new house for less than you’d pay for a 20-year-old one in the same neighborhood.

Why? Because sellers aren’t pricing homes based on cost. They’re pricing them based on desperation. Buyers are competing for what’s left - older homes with outdated layouts, no insulation, and roofs that need replacing in five years. Builders, on the other hand, are stuck with fixed costs: lumber, steel, concrete, labor. Those haven’t dropped back to 2019 levels, but they’ve stabilized. Meanwhile, demand for resale homes has cooled, but prices haven’t fully adjusted.

What you’re really paying for when you buy an older home

When you buy a resale home, you’re not just paying for square footage. You’re paying for:

• Hidden damage - mold in the basement, cracked foundation, old wiring
• Outdated systems - a 25-year-old furnace, single-pane windows, aluminum plumbing
• Design compromises - no main-floor laundry, tiny bathrooms, no walk-in closets
• Land value inflation - the lot might be worth $180,000, but the house is only worth $70,000

A 2024 study by the Canadian Home Builders’ Association found that 68% of homes sold in Atlantic Canada needed $25,000 or more in repairs within the first year of ownership. That’s not a minor fix. That’s a second mortgage. And if you’re buying in a hot area like Dartmouth or Bedford, you’re likely paying a premium just for the address - not the condition.

Building gives you control - and savings - you can’t get buying

When you build, you decide what you get. No more paying extra for a fourth bedroom you don’t need. No more accepting a kitchen with zero counter space because it’s the only one on the market. You can build exactly what you want - and skip the upgrades that cost more than they’re worth.

For example:

• Buy a resale home with a $40,000 kitchen upgrade? You’re paying $40,000 for someone else’s taste.
• Build a kitchen with quality cabinets, quartz counters, and energy-efficient appliances for $32,000? You’re saving $8,000 - and you get exactly what you asked for.

Same goes for insulation. New builds in Nova Scotia now meet 2025 energy code standards - R-40 walls, R-60 attic, triple-pane windows. A 2005 home might have R-18 walls. That’s $800 extra a year on heating bills. Over ten years? $8,000 - and that’s before you factor in rising energy costs.

The hidden costs of building - and how to avoid them

Yes, building has risks. And yes, it’s not for everyone. But most people who go over budget aren’t bad planners - they’re just unaware of what’s included.

Here’s what builders often don’t tell you upfront:

• Land isn’t free. You need to buy it - and clear it, grade it, connect utilities. That’s $30,000-$70,000 depending on location.
• Permits and fees aren’t small. In Halifax, building permits for a custom home can hit $12,000.
• Design changes cost. Want to move a window? That’s $1,500. Add a second bathroom? That’s $25,000 extra.
• Finishing touches add up. Flooring, lighting, blinds, landscaping - these aren’t part of the base price.

But here’s the fix: work with a builder who offers a fixed-price contract with a detailed list of inclusions. Ask for a line-item breakdown. If they can’t give you one, walk away. Some builders in Nova Scotia now offer ‘build-to-price’ packages - you pick a floor plan, a finish level (basic, standard, premium), and get one price. No surprises.

Who should build? Who should buy?

Building makes sense if:

• You’ve saved at least 20% for a down payment + land purchase
• You’re okay with a 6-10 month timeline
• You want energy efficiency, modern layout, and no repair bills for the first 10 years
• You’re willing to be involved - not just sign papers

Buying makes sense if:

• You need to move in next month
• You’re on a tight budget and can’t afford land or permits
• You don’t mind spending $15,000-$30,000 on repairs in the first year
• You love character homes and don’t mind drafty windows

There’s also a third option: buy a fixer-upper that’s been stripped down to the studs. Some investors buy homes, gut them, and resell - but you can do the same. A $350,000 teardown in Clayton Park, for example, can be rebuilt into a $550,000 home with modern systems. That’s a $200,000 equity boost - if you’re patient and have the skills.

Real numbers from Halifax homeowners in 2025

Here’s what two families actually paid:

Maria and Tom bought a 1,800 sq ft home in Spryfield. It was built in 1998. They paid $485,000. Six months later, they spent $38,000 replacing the roof, upgrading the HVAC, installing new windows, and redoing the bathroom. Total: $523,000.

James and Lena built a 2,100 sq ft home on a half-acre lot in Upper Tantallon. Land cost $140,000. Construction was $310,000. Permits, landscaping, and finishes added $45,000. Total: $495,000. Their home has solar panels, heat recovery ventilation, and a 30-year roof. No repairs needed yet.

James and Lena saved $28,000 - and got a home that’s worth $600,000 today.

It’s not about being cheap. It’s about being smart

Building isn’t always cheaper. But in 2025, it’s often smarter. You’re not just buying a house. You’re buying peace of mind, energy savings, and control over your environment. The market has shifted. Resale homes are expensive because there aren’t enough of them - and what’s left is worn out. New builds are priced based on real costs, not speculation.

If you’re thinking about your next home, don’t just ask: Is it cheaper to build than buy? Ask: Which option gives me the most value over the next 10 years? For many people in Nova Scotia, the answer is building.

If you’re thinking about your next home, don’t just look at the price tag. Look at the long-term cost - repairs, energy bills, comfort, and resale value. In 2025, building isn’t just an alternative to buying. For many, it’s the better choice.