Key Takeaways
- When building a 3,000 sq ft waterfront home on the Mississpi Gulf Coast can save around $300k – $600k compared to other areas like Destin, even before purchasing the land
- With a $850K total budget to work with you can often build a fully completed water homes with a dock in
- Mississippi, that cost a lot less compared to other places, such as 30A, Naples, or Sarasota. Without same budget, it may only cover the lot of those places.
- The homeowners insurance rate in the Mississippi Gulf Coast is more consistent, while the insurance in Florida has become more expensive and has less ability in recent years.
- Text laws continue to change. It is best to get connected with a qualified tax advisor for your specific situation.
The Construction Cost Gap Real and Significant
MS Gulf Coast
- Build: $280–$400+/sq ft
- Land: $150K–$700K+
- Retirement tax: $0
Destin / 30A, FL
- Build: $400–$575+/sq ft
- Land: $400K–$2M+
- Retirement tax: None
Naples / Marco Island, FL
- Build: $425–$625+/sq ft
- Land: $500K–$3M+
- Retirement tax: None
Sarasota, FL
- Build: $375–$550+/sq ft
- Land: $350K–$1.5M+
- Retirement tax: None
Panama City Beach, FL
- Build: $350–$500+/sq ft
- Land: $250K–$900K+
- Retirement tax: None
Buyers typically look at Florida when wanting to purchase a waterfront property. Locations such as Destin, Naples, 30A,and Sarasota are very well known and desirable. However, as prices continue to rise in those locations, buyers have been looking at markets with the Mississippi Gulf Coast in mind.
One of the biggest differences comes down to the value. In Florida high demand has pushed construction and land cost to be much higher. And in most cases buyers find that their budget does not go as far as they expected. It is not uncommon for a big portion of the budget to go towards the lot alone. This leaves a lot less room for the actual home itself.
On the Mississippi Gulf Coast, the situation is different. Buyers can often purchase and build a waterfront home with all that in mine. From quality finishes and high-quality construction. This creates a better investment. Where you get the perfect piece of land in a home that meets your expectations.
Construction costs are also a major factor. Both of the regions require coastal building standards. And overall the cost per square foot is typically lower in Mississippi. The total cost of the phobia build and other differences add up can save hundreds of thousands of dollars.
The Tax Picture: Same Results for Retirees, Better Value
Another reason buyers take a closer look at Mississippi is because of taxes. The state does not tax retirement income as well as Social Security pensions. This includes many types of retirement withdrawals as well. This is important for retirees and is another similar benefit to Florida’s tax structure. However, it offers lower overall cost. In Mississippi many common income sources are not taxed at the state level.
The sources include:
- Social Security income
- Ira distributions
- 401k withdraws
- Pension income, public and private
- Military retirement pay
Mississippi counties to reduce the taxes even more. The Act build up Mississippi Act is helping with lower rates and over time it is going to help.
Insurance is also a big consideration. In recent years, many Florida insurance markets have become more expensive and difficult to navigate. Especially during storm season the rates have gone up. On the Mississippi Gulf Coast that is still a factor. But rats have remained more stable, compared to other Florida markets.
Overall, both locations offer amazing waterfront living. Florida has become renowned and long established luxury markets. The Mississippi Gulf Coast offers a strong combination of lower cost, solid, construction, and overall value.
For most buyers who are looking to get the most for their money, it is definitely worth taking a look at the luxury waterfront homes in Mississippi. And comparing rates.
The $850,000 Test: What You Get
Here is how a $850K budget goes in each market:
MS Gulf Coast
- Land: $200K–$350K
- Build budget left: $500K–$650K
- Result: Finished home (2,000–2,600+ sq ft), outdoor space, and dock
Destin / Fort Walton, FL
- Land: $350K–$600K
- Build budget left: $250K–$500K
- Result: Smaller home or lower finishes
30A (Santa Rosa Beach, FL)
- Land: $450K–$900K+
- Build budget left: $0–$400K
- Result: Often land only
Naples / Marco Island, FL
- Land: $500K–$1M+
- Build budget left: $0–$350K
- Result: Mostly land
On the Mississippi Gulf Coast, $850K can cover a full custom waterfront home, built for the lot, with coastal standards, outdoor living, and a dock.
The lifestyle comparison
Ocean Springs was named USA todays #1 Best Coastal Small town and Southern Living Best Small town in Mississippi. Bay St Louis was ranked #2 on USA Today’s List and for good reason.
- Many walkable areas downtown with real local culture, aside from tourist spot
- Easy access to the Gulf of Mexico for activities such as fishing, voting, sailing, and other golf Island nature seashores.
- They have a strong local food scene, from vestige an ocean Springs a James Beard nominated restaurant
- The Bay St. Louis is approximately 15 minutes from New Orleans, the offers a quick access to a major city
- They have a lower density, less traffic and established neighborhoods.
Check out how this all comes together at https://thornhillconstruction.com/gallery/
Frequent Questions
Isn’t Mississippi’s real estate market less established than Florida’s?
There are many areas such as Ocean Springs, Bay, St. Louis, and past Christian that have become more popular with buyers over the years. Recent words from the USA today in southern living reflect why many people know the value of these areas. HOME values have continued to rise, and there are so many qualities of waterfront properties available.
Is the Build- Up Mississippi Act guaranteed to eliminate income taxes?
The answer is no. The plan is to reduce income taxes overall with the goal to eliminate over 2030. This all depends on the state funding levels. What is current today in retirement income is not taxed however, the current law is.
Can Thornhill Build for buyers who live out of state?
The answer is yes. Most of Thornhill’s construction clients live outside of Mississippi. The process involves weekly updates, video walk-through, and a high-quality construction manager that keeps everything on track. The https://thornhillconstruction.com/plans/ that starts in the $ 600 is often the fastest way to get started.
Your Next Step
The comparison is evident. The Mississippi Gulf Coast offers more waterfront homes for a lower cost compared to well-known coastal towns. The tax benefit that matches or even beats Florida retirees. If you are ready to build your luxury home on the Mississippi coast then get then schedule your free consultation today with Thornhill Construction. https://thornhillconstruction.com/