Historically, the difference between building a two-story home and building a one-story home meant that the two-story home would be cheaper. However, with recent supply chain issues and the increase in construction costs, there is now a break-even point between building up versus building out. Two-story homes can be beneficial in instances where there is a significant amount of grading that needs to be done in order to do a slab foundation. However, under normal circumstances, a slab foundation is the first choice.