Would You Save Money Building a New Home in Hollis Hills? The Numbers May Surprise You

By Bella Kahlon | Local Real Estate Market Report

Drive through Hollis Hills long enough and you'll notice something interesting. Nestled between well-maintained Colonials and expanded Capes are brand-new custom homes with contemporary finishes, oversized windows, and price tags well above $2 million. It raises a question more homeowners are quietly asking:

Is it actually smarter to tear down an older home and build new—or buy an existing home and renovate it?

The answer isn't as straightforward as many people think.

The Trend Behind the Tear-Down

Over the last decade, Hollis Hills has become one of Northeast Queens' most desirable neighborhoods for custom home construction. Large lots, tree-lined streets, and proximity to major highways, parks, and highly regarded schools have made the neighborhood attractive to both end users and builders.

Unlike many parts of New York City where vacant land is scarce, much of the new construction in Hollis Hills begins with an older home purchased specifically for demolition. Industry experts note that tear-down-and-rebuild projects are often the only practical way to create a new custom home in established Queens neighborhoods. (New Home Source)

Building New Isn't Just About Construction Costs

When people think about building a house, they usually focus on the contractor's estimate. That's only part of the story.

A new build in Queens typically includes:

• Purchasing the property

• Architectural and engineering plans

• Demolition

• Department of Buildings permits

• Site preparation and soil testing

• Utility connections

• Construction

• Landscaping

• Financing and carrying costs

Each of these steps adds both time and expense before the first wall is framed. New York City also requires extensive permitting and professional filings for new residential construction. (DOB Guard)

So...What Does It Cost?

Construction costs vary widely depending on the home's size, finishes, lot conditions, and complexity.

Recent industry estimates suggest:

• Residential construction in Queens commonly ranges from approximately $275 to more than $840 per square foot, depending on design and finish level. (Buildora IQ)

• Statewide, the average cost to build a home in New York is estimated at roughly $524,000, though luxury custom homes in New York City often exceed $1 million before land acquisition. (Home Advisor)

For Hollis Hills, where many custom homes exceed 3,500 square feet and include premium finishes, total project costs can be substantially higher once land and demolition are factored in.

Buying Existing May Cost Less Up Front

Buying an existing home often allows buyers to:

• Move in sooner.

• Avoid lengthy permit approvals.

• Finance the purchase with a traditional mortgage.

• Renovate over time rather than all at once.

For many families, that flexibility outweighs the appeal of building from scratch. However, older homes can come with hidden costs—aging plumbing, outdated electrical systems, roof replacements, foundation repairs, or layouts that no longer fit today's lifestyles. Those renovation expenses can quickly narrow the price gap between remodeling and rebuilding.

Why Some Buyers Still Choose to Build

Despite higher costs, demand for new construction remains strong because buyers value features that are difficult or expensive to add to an older home.

These often include:

• Open-concept floor plans

• Higher ceilings

• Energy-efficient mechanical systems

• Larger kitchens

• Home offices

• Smart-home technology

• New plumbing and electrical system

• Modern insulation and building materials

A newly built home also typically requires less maintenance during the first several years of ownership.

The Time Factor

Building a custom home requires patience. Industry estimates suggest that a typical custom home in New York takes roughly seven to eight months to build once construction begins, but permitting, plan approvals, financing, demolition, and inspections can significantly extend the overall timeline. In Queens, permit review alone may take several months depending on the project and agency workload. (New Home Source)

By comparison, purchasing an existing home can often be completed in 30 to 90 days.

What Does This Mean for Hollis Hills Homeowners?

The decision isn't simply about cost. It's about priorities. If your goal is to move quickly and minimize construction risk, purchasing an existing home may make more financial sense. If you're planning to stay for decades and want a home designed specifically for your family's lifestyle, building new may justify the higher upfront investment.  For sellers, the growing interest in custom construction has created another opportunity: older homes on oversized lots may be especially attractive to builders looking for redevelopment potential.

The Bottom Line

There isn't a one-size-fits-all answer. In neighborhoods like Hollis Hills, where land is limited and demand for luxury homes remains strong, both strategies—buying existing and building new—can make sense depending on your budget, timeline, and long-term goals. The smartest decision begins with understanding not just the purchase price, but the total cost of ownership, construction, financing, and future resale potential.

Reference

NewHomeSource, How to Build a House in New York City and State (updated 2024). (New Home Source)

HomeAdvisor, How Much Does It Cost to Build a House in New York in 2026? (Home Advisor)

Realtor.com Research, Hollis Hills Housing Market Trends (2026). (Realtor)

NYC Department of Buildings permit guidance and timelines. (DOB Guard)

• New York State, "Let Them Build" Housing Reform Agenda (2026). (Governor Kathy Hochul)