Build or Buy
Build or Buy? Why Building a House May Be Your Best Option in Las Vegas
Las Vegas is a hot real estate market. We draw newcomers and investors alike, attracted by our sunshine, job growth, and entertainment industry. Yet today’s housing shortage, home prices, and mortgage interest rates have many homebuyers weighing a critical question: Is it wiser – financially and otherwise – to buy an existing home, or to build your dream home from the ground up?
Cost Analysis: Buying vs. Building in Las Vegas
Let’s first compare the numbers based on Greater Las Vegas Association of Realtors data to help you make an informed decision about what is best for you and your situation.
Buying an Existing Home
| Median Home Price (Q2 2024): ~$430,000 |
| Down Payment: 5%-20% ($21,500–$86,000) |
| Financing: 6.5% average mortgage rate |
| Closing Costs: ~$8,000–$10,000 |
| Potential Immediate Renovations: $5,000–$25,000 (especially for homes over 10-15 years) |
| Property Taxes: 0.5%–0.7% of value/year ($2,150–$3,010) |
| Insurance: $900–$1,300/year |
| HOA Fees: $50–$300/month in many neighborhoods (~$600–$3,600/year) |
Building a New Home
| Land Cost: $80,000–$200,000 depending on area (often more affordable in outlying regions like North Las Vegas or Boulder City) |
| Site Work/Permits: $25,000–$70,000 |
| Financing: Construction loan (typically higher interest, ~7%), converts to mortgage |
| 2,000 sq. ft. Home: $380,000–$500,000 (average) |
| Total Upfront Investment: $485,000–$770,000 (including land, permits, construction, closing costs) |
| Property Taxes: After build, similar rate as above – but taxes are usually lower in the first 1–2 years until reassessment |
| Insurance (during & after build): $1,200–$2,000/year |
| Construction Costs: $190–$250/sq. ft. (mid-range custom build) |
Benefits of Building New in Las Vegas
Let’s consider some of the practical and financial considerations for why building new is beneficial.
Flexibility and Customization
The flexibility to build where you want is attractive to many because a lot of neighborhoods in our area are nearly “built out.” This means that there is no longer any available space to put a new home which, in turn, drives up the price of homes on the market. That makes the periphery of Las Vegas open for affordable options for land purchase and new construction often at a total cost comparable to or even less than remodeling an older home to your standards.
Building new – especially when using a Design-Build team – also allows for customization that is uniquely you. They can work with you to design modern open layouts, include high-efficiency energy systems, smart home features, solar readiness, and advanced insulation options that would be cost-prohibitive to retrofit into an existing home.
Newer Construction = Lower Ongoing Costs
For at least 8–10 years, new homes usually need little-to-no major maintenance. No surprise roof, plumbing, HVAC, or appliance replacement bills. Plus, new homes must meet today’s rigorous building and safety codes. This not only protects you and your family, but also mitigates future repair costs, liability, and insurance premiums. For many, the peace of mind of knowing that they shouldn’t have unexpected major repairs and replacements make building new worth every penny.
Resale Value
Many new communities – especially in emerging growth corridors like North Las Vegas, Henderson, and parts of the Southwest Valley – have shown faster appreciation rates than established neighborhoods (per recent Clark County data). A new, modern home may capture a resale premium over older houses moving forward. Contemporary homes with modern features often sell faster and command more per square foot when it’s time to move, compared to traditional tract homes from prior decades.
Additional Considerations
You’ll need cash for land, permits, and construction deposits before converting to a conventional mortgage. Plus, construction loans generally have stricter requirements, so you will need more cash up-front than you would with a traditional mortgage. There is also the time commitment to keep in mind. Expect 9–18 months from purchase of land to move-in. This means you may need to keep your current home, rent, or find other temporary housing during construction which may add some costs, but generally, these are offset by year-one savings and value gains over time.
The Bottom Line
Although you need more up-front cash when building a home than when buying, the long-term financial implications are significantly better. New homes mean every improvement and upgrade is designed for your benefit – not spending it on outdated or worn-out systems and other hidden repairs often found in an older home. The value appreciation starts from the most current baseline, reducing future capital losses and growing equity.
Many builders in Las Vegas offer incentives like builder warranties closing cost assistance, and appliance packages, that are potentially worth thousands in savings. And, by strategically selecting an up-and-coming area, your land and property could appreciate more quickly as infrastructure improves like we’ve seen recently in Summerlin South, Inspirada, and Skye Canyon.
Key Takeaways
For buyers committed to strong long-term value, customization, and lower ongoing costs, building a home in Las Vegas and its surrounding area is usually the financially better choice. While building requires more patience and a larger upfront investment, it delivers unmatched financial benefits: modern construction that minimizes maintenance, the ability to select appreciating neighborhoods, and the flexibility to design a home fit for your needs and today’s market trends.
As population growth, new infrastructure, and evolving buyer preferences shape Las Vegas, a newly built home positions you to maximize both your quality of life and your financial returns.
Ready to explore your options and start building your dream Las Vegas home? Connect with the experts at Kingdom & Co. to unlock the best land, builders, and strategies — your future self will thank you.
