Passive methods from vernacular architecture are becoming increasingly important to achieve the goal of climate-neutral buildings. However, a holistic and objective comparison between traditional and modern construction methods is often missing, as well as the consideration of future climate scenarios due to climate change. This paper aims to compare the climate performance, adaptability to climate change, embodied emissions, and material costs of a representative vernacular building, a vernacular house with added modern materials, a simple-built modernist house, and a passive house in Quito-Ecuador. Therefore, a life cycle assessment and material cost analysis were conducted, followed by a thermal indoor climate simulation to calculate the climate and climate change performance parameters. Results indicate that traditional vernacular houses are the most cost-effective and have the lowest embodied emissions. In contrast, passive houses offer superior climate performance at a higher cost but are less adaptable to future climates. A modernized vernacular design emerges as the most thermally efficient, showcasing the benefits of integrating contemporary and vernacular approaches for optimal environmental and economic sustainability.