This study investigates whether the use of friction connections in steel buildings are a cost-effective alternative compared to the more commonly used extended end-plate connections. Several 4-storey steel moment resisting frames designed with different connection types and considering various site locations around New Zealand (Auckland and Wellington) are analysed. It is found that buildings with friction connections have similar nominal strengths compared to traditional alternatives, but are generally stiffer. Frames with friction connections are observed to generally experience similar or lower peak total floor accelerations and lower interstorey drifts on most floors, resulting in lower expected annual loss. Net-present-value analysis showed that the time to return of investment is just 3 years for the frame with friction connections in Wellington, but is greater than 50 years for Auckland. This indicates that friction connections are likely a more cost-effective solution for regions of higher seismicity.