Build vs Buy Cost Calculator
Home Cost Comparison Calculator
Compare the true financial cost of building versus buying a home in Halifax, Canada in 2025.
Comparison Results
Building a house sounds like the ultimate dream-your layout, your finishes, your space. But is it actually smarter than buying an existing home? In 2025, with material prices still hovering above pre-pandemic levels and interest rates holding steady at 5.25% for 5-year fixed mortgages in Canada, the math doesn’t always add up. I’ve seen too many people assume building is cheaper or more valuable, only to end up stressed, over budget, and stuck with a house that doesn’t appreciate like they hoped.
What Does It Really Cost to Build a House in 2025?
In Halifax, the average cost to build a 2,000-square-foot single-family home is between $350 and $450 per square foot. That’s $700,000 to $900,000 before land. And land? In areas like Dartmouth or Sackville, you’re looking at $250,000 to $400,000 for a decent lot. So total? You’re looking at $950,000 to $1.3 million before you even start furnishing it.
Compare that to buying a similar-sized home in the same area-newer builds in established neighborhoods like Timberlea or Clayton Park go for $800,000 to $1.1 million. You’re not saving money by building. You’re paying extra for customization, permits, contractor markups, and delays.
Here’s what breaks down in your build budget:
- Materials: 40-45% (lumber, windows, insulation, drywall-all up 18% since 2023)
- Labor: 30-35% (trades are scarce, wages are high)
- Permits and fees: 5-7% (city fees, engineering, inspections)
- Land: 20-30% (if you don’t already own it)
- Contingency: 10-15% (you absolutely need this)
Most first-time builders skip the contingency. Big mistake. I worked with a couple in Upper Sackville who thought they’d save $30,000 by skipping it. They ended up spending $52,000 extra when the septic system failed and the foundation needed reinforcement.
Time Is Money-And It’s Not Just About Waiting
Building a house takes 8 to 14 months. That’s longer than you think. And during that time, you’re still paying rent-or a mortgage on a different property. Add in storage fees for your stuff, hotel stays if you’re relocating, and the stress of daily site visits. That’s not just time lost-it’s money drained.
One client, a nurse in Dartmouth, built her home over 11 months. She paid $2,800/month in rent, $450 in storage, and $1,200 in gas for daily site trips. That’s $49,500 in hidden costs before she even moved in. Meanwhile, she could’ve bought a move-in-ready home for $920,000 and saved $20,000 in interest by closing faster.
And delays? They’re not rare. Weather, supply chain hiccups, inspector backlogs-these aren’t outliers. They’re the norm. In 2024, Halifax building permits took an average of 68 days to approve, up from 42 in 2022. That’s two extra months of carrying costs before a single wall goes up.
Will Your Custom Home Appreciate Like You Think?
Here’s the myth: build a house, and it will skyrocket in value. The truth? Custom homes don’t automatically sell for more. In Halifax’s current market, homes that are 5-10 years old and well-maintained often outperform brand-new builds in resale.
Why? Buyers aren’t paying extra for your custom quartz countertops or smart lighting. They’re paying for location, layout, and condition. A 2023-built home with an open floor plan, good insulation, and a finished basement will sell faster and for more than a 2025-built home with a weirdly shaped mudroom and a spa bathroom no one uses.
According to the Nova Scotia Real Estate Board, homes built in 2023 sold for an average of 8.2% above asking price. Homes built in 2025? Just 3.1%. Why? Buyers are tired of paying for unfinished details, untested systems, and unproven energy performance.
Custom features like heated floors, home theaters, or wine rooms rarely add dollar-for-dollar value. They add personal comfort-but not resale value. The only upgrades that consistently pay off: energy-efficient windows, high R-value insulation, and a well-designed layout that maximizes natural light.
Hidden Costs You Can’t Ignore
Most people focus on the big numbers-materials, labor, land. But the small stuff kills budgets.
- Design changes: Every tweak to the floor plan costs $1,500-$5,000. You think you’re saving by doing it yourself? You’re not. Architects charge for revisions, and contractors bill for rework.
- Utility hookups: Water, sewer, gas, and electrical extensions can run $20,000-$50,000 if your lot isn’t already serviced. In rural areas, you might need a well and septic-$30,000 minimum.
- Landscaping: Most builders only do the bare minimum. A decent yard with trees, sod, and drainage? $25,000-$40,000.
- Finishing touches: Curtains, appliances, light fixtures, garage doors-these aren’t included in the base price. Budget another $50,000-$80,000.
One family in Lower Sackville thought they were getting a $900,000 home. By the time they paid for everything else, they spent $1.28 million. They didn’t have the cash. They had to refinance their existing mortgage at a higher rate.
When Building Actually Makes Sense
It’s not all bad. There are real cases where building is the smarter move.
- You own land outright-no mortgage, no purchase cost.
- You need a specific layout-for example, a single-level home for aging parents, or a home office with soundproofing.
- You’re replacing a damaged or unsafe home and can’t find a suitable replacement.
- You’re building for long-term rental income and want to control quality and energy efficiency.
One client in Halifax built a 2,500-square-foot home on land inherited from his parents. He designed it with two suites, high-efficiency HVAC, and solar-ready wiring. He lives in one unit and rents the other. His monthly cash flow is positive, and he’s already seen 12% equity growth in two years. That’s a rare win.
But here’s the catch: he had a $300,000 land asset already. He didn’t borrow to buy it. He had $150,000 in savings for contingencies. He hired a builder with a 10-year track record. He didn’t chase trends. He built for function and future-proofing.
Build vs Buy: The Numbers Don’t Lie
Let’s compare two scenarios in Halifax, 2025:
| Item | Build a Home | Buy a New Home |
|---|---|---|
| Home Price (2,000 sq ft) | $750,000 | $900,000 |
| Land Cost | $300,000 | $0 (included) |
| Contingency (10%) | $105,000 | $0 |
| Finishing (appliances, landscaping, etc.) | $70,000 | $20,000 |
| Hidden Costs (rent, storage, travel) | $50,000 | $0 |
| Total Out-of-Pocket | $1,275,000 | $920,000 |
The buyer saves $355,000 upfront. That’s enough to pay off credit cards, invest in RRSPs, or fund a child’s education. The builder? They’re locked into a mortgage with higher payments, more maintenance, and no room to move.
What You Should Do Instead
If you’re thinking about building, pause. Ask yourself:
- Do I already own land with no debt?
- Can I afford to pay $1.3 million without stretching my finances?
- Do I have 12+ months of flexibility in my life to manage this project?
- Am I building for lifestyle-or for profit?
If you answered no to any of these, buy instead. Look for homes built between 2018 and 2023. They’re newer, have better insulation, and come with warranties. You’ll get 90% of the benefits of a new build without the 150% of the cost.
And if you’re set on custom features? Buy a fixer-upper. A $650,000 home with a bad kitchen and outdated bathroom can be transformed for $100,000-$150,000. You get your dream layout, you control the upgrades, and you still come out ahead.
Bottom Line
Building a house isn’t a financial win-it’s a lifestyle choice. It’s about control, not cost. If you want to design every detail, then build. But don’t fool yourself into thinking you’re making a smarter investment. In 2025, the numbers show that buying a newer home is almost always the smarter financial move.
Save your money. Save your stress. Save your time. And buy the house that already exists-then make it yours.
Is it cheaper to build a house or buy one in 2025?
In 2025, it’s almost always cheaper to buy a new or nearly new home than to build one. In Halifax, building a 2,000-square-foot home costs $1.2 million or more when you include land, contingencies, and finishing. A comparable move-in-ready home sells for $800,000-$950,000. You’re paying 30-50% more to build, and you’re waiting 8-14 months to move in.
What adds the most value when building a house?
The only upgrades that reliably increase resale value are energy-efficient windows, high R-value insulation, a well-designed open layout, and a finished basement. Custom features like heated floors, smart homes, or gourmet kitchens rarely add dollar-for-dollar value. Buyers care more about condition and location than finishes.
How long does it take to build a house in Halifax in 2025?
On average, it takes 10 to 14 months to build a house in Halifax in 2025. Permits take 6-8 weeks, and delays from weather, labor shortages, or supply issues are common. Most builders list 8 months as the timeline, but real-world builds take longer.
Can I save money by being my own general contractor?
Almost never. Being your own general contractor sounds smart, but it’s risky. You’ll spend weeks coordinating trades, dealing with permits, and fixing mistakes. Most people end up paying more in stress, delays, and errors than they save. Professional builders have bulk pricing, reliable crews, and insurance. It’s worth the 10-15% fee.
Should I build if I plan to rent it out?
Only if you own the land and have strong cash flow. Building for rental can work if you design for long-term tenants-like two-bedroom units, energy efficiency, and low-maintenance finishes. But the upfront cost is high, and vacancy risks are real. Many investors find better returns buying existing multi-unit properties that already generate income.
