There are a few homes sitting around in the Craft Farms area that have never sold because the cost of construction was much more than the selling prices. The cost of construction has begun to come down. These new homes are still having a hard time selling because they were built back when cost were higher. I would think that you might be able to come close to building right now for the cost of something you could buy if you want to buy something that is like new. If you would settle for something that might need bringing up to your standards you could probably buy something existing just as reasonable.
The cost of construction in Gulf Shores is going to be the same as Mobile and surrounding areas. This is constructing the dwelling only based on today's sq. ft. prices. Depending on interior amenities and whether it is in a flood zoned area, which not everything on the island is in a flood zone, the per sq. ft. price of new constructiong (dwelling only) would range from $70 sq. ft. to $130 sq. ft. The key is the cost of the lot or land. Lots are going to start around 100K. Insurance is what has been hurting us on the island, even though insurance would be cheaper with new construction and built to the international building code.