Is It Cheaper to Build or Buy a House in Amarillo, TX? (2026)
In Amarillo, buying an existing home is usually cheaper up front. The median resale price in 2026 runs around $250,000, while building costs roughly $110 to $200 a square foot before land, so a comparable new home often lands higher once you add the lot. Where building catches up is the yearly cost of owning, because insurance, energy, and repairs all run lower on a new home.
Both answers can be right, depending on what you want and how long you plan to stay. Here's the real math on each, plus the costs that don't show up on the price tag.
What it costs to buy an existing home in Amarillo
Estimates of the median sale price in 2026 range from about $235,000 to $285,000 depending on which source you check, with most landing near $250,000. You can see current numbers on Redfin's Amarillo market page. At that price you take the house as it is: whatever age the roof, the HVAC, and the water heater happen to be, and whatever the last owner did or didn't keep up.
What it costs to build
Local 2026 estimates put construction at $110 to $200 a square foot before land. For a 2,200 square foot home that's about $242,000 to $440,000, depending on your finishes. We break the full cost down in our guide to building a custom home in Amarillo.
Land and site work are separate, though Amarillo lots cost far less than Austin or Dallas, which is part of why building here pencils out better than in the big metros. On size alone, a modest build can start near the resale median, while a larger or higher-finish home runs well above it. So on the sticker price, buying usually wins.
The costs that don't show up on the sticker
The purchase price is only part of what a home costs you. A new build runs lower on three ongoing bills.
Insurance is the big one in Amarillo. A new B&M home comes with a Class IV impact-resistant roof, which carriers discount by up to 30%, and on the hail-driven premiums here that is real money back every year. Our home insurance page has the breakdown.
Energy is next. A new, energy-efficient build has current insulation, windows, and HVAC, so the utility bill runs lower than an older house of the same size.
Then there's repairs. An older home can need a new roof, an AC unit, or a water heater within a few years of buying. A new home comes with a warranty and years before anything major comes due.
So which is cheaper?
If you're only counting the price at closing, buying an existing home is usually the cheaper route in Amarillo, especially in the middle of the market. Building costs more for the same size once land is in, but the gap is smaller than people expect at the entry level, and it shrinks over the years you own the home because the insurance, energy, and repair bills are lower.
Here's the honest take. Buy if you want the lowest price today and don't mind an older home's upkeep. Build if you want lower running costs, a warranty, and a house set up the way you actually live.
How B&M makes building pencil out
A few of our programs close the price gap between building and buying.
If you already own a home, our Trade-In Program puts its value toward your new build, so you're not carrying two mortgages while you wait. Our Affordable Mortgage Payment Program works on the monthly number, not just the purchase price. You can see what we have going up now on our new construction homes page, or what's ready to move into on our move-in ready homes page.
Frequently asked questions
Is it cheaper to build or buy a house in Amarillo?
On the purchase price, buying an existing home is usually cheaper, with a 2026 median around $250,000. Building runs $110 to $200 a square foot before land, so it often costs more for the same size, though a new home's insurance, energy, and repair bills run lower.
How much does it cost to build a house in Amarillo?
About $110 to $200 a square foot before land in 2026, or roughly $242,000 to $440,000 for a 2,200 square foot home, depending on finishes.
How much is an existing home in Amarillo?
Estimates of the 2026 median sale price range from about $235,000 to $285,000, with most near $250,000.
Is building worth it if it costs more up front?
It can be. A new home usually costs less to insure, heat, cool, and repair, and it comes with a warranty, so the yearly savings add up over time.
Can I build without paying two mortgages?
Yes. Our Trade-In Program lets you put your current home's value toward the new one so the two close together.
Ready to compare your own numbers?
We'll run both numbers with you, build and buy, so you can see them side by side. Call 806-557-3813 or contact us to get started.
