Are Kit Homes cheaper than building?

Yes – typically much cheaper (around one-third less was noted), largely by avoiding big builder margins and using cladding and Colorbond roofing rather than brick and tiles.

Why Kit Homes Can Save You Money

Kit homes come with several inherent advantages that can lead to lower overall costs:

Reduced Material Costs: Manufacturers of kit homes buy materials in enormous quantities. This bulk purchasing allows them to get significant discounts that individual builders simply can’t match. Plus, materials are often pre-cut and pre-measured in a factory, leading to less waste on your build site.
Lower Labor Costs: A big chunk of a traditional home’s price comes from on-site labour. With kit homes, much of the work is done in a controlled environment, reducing the need for large on-site crews and shortening build time. If you’re handy, doing some of the assembly yourself can lead to even bigger savings – see our owner-builder savings guide.
Faster Construction Time: Because components arrive pre-fabricated, kit homes go up much faster than traditional builds. This quicker timeline means less time paying for construction loans and other carrying costs.
More Predictable Costs: While there are always variables, the kit price is known upfront, which can make your overall project budget more predictable than a traditional build. For common allowances beyond the kit (site works, services, finishes), check our construction cost guide.

Making Your Decision

If your main goal is to minimize upfront costs and you’re open to a more standardized design (or willing to put in some DIY effort), a kit home can indeed be a significantly cheaper option. However, it’s vital to get a comprehensive quote that covers all the expenses beyond just the kit itself to get a true comparison.

For those who prioritize complete design freedom and are prepared for a potentially higher budget and longer timeline, traditional building offers unmatched customisation.