Shouldn’t it cost less? Is it to do with construction costs being high for unrelated reasons?
In: Economics
This is such a loaded question and not sure if it can be answered in an ELI5 manner, but a lot of it comes down to utilities being available in your area and whether they sell serve you or not and what the conditions of your specific parcel are.
When you’re doing a large project on an undeveloped parcel, there is a lot of earthwork and utility infrastructure that needs to be laid down and that cost is spread throughout all homes, so it may be cheaper to buy the home than it is to deal with a particularly disadvantageous lot or challenging circumstances around making sure the land is code compliant.
Assuming all things being equal on a nearly pad-ready lot with easy access to already existing utilities, then it is definitely cheaper for you to build your own home than it is buy one from a land developer; You are paying money to the developer to get his cut, but also paying money for a lot of people to figure out how to build a home that is compliant with all local regulations.
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