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Alabama vs Mississippi

Side-by-side construction cost comparison for 2026. Building a 2,000 sq ft home in Mississippi saves approximately $14,000.

More affordable for new construction

Mississippi

$147/sq ft vs $154/sq ft — saves $14,000 on a 2,000 sq ft build

MetricAlabamaMississippi
2026 $/sq ft$154 $147
1,500 sq ft$231,000 $220,500
2,000 sq ft$308,000 $294,000
2,500 sq ft$385,000 $367,500
Labor Index0.80 0.76
Material Index0.84 0.80
Avg Permit Cost$1,800 $1,600
Median Home Price$210,000 $178,000
Home Price YoY+3.2% +3.5%
ClimateHumid subtropical Humid subtropical

Alabama Notes

  • Low labor costs
  • Hurricane-resistant construction in coastal areas
  • Clay soil foundation considerations
Full Alabama guide →

Mississippi Notes

  • Lowest construction costs in the US
  • Coastal hurricane requirements
  • Expansive clay soils common
Full Mississippi guide →

Cost by Home Size

SizeAlabamaMississippiDifference
500 sq ft$77,000$73,500Mississippi saves $3,500
1,000 sq ft$154,000$147,000Mississippi saves $7,000
1,500 sq ft$231,000$220,500Mississippi saves $10,500
2,000 sq ft$308,000$294,000Mississippi saves $14,000
2,500 sq ft$385,000$367,500Mississippi saves $17,500
3,000 sq ft$462,000$441,000Mississippi saves $21,000
4,000 sq ft$616,000$588,000Mississippi saves $28,000
5,000 sq ft$770,000$735,000Mississippi saves $35,000