diff --git a/docker/ha-addon-rootfs/etc/s6-overlay/s6-rc.d/esphome/run b/docker/ha-addon-rootfs/etc/s6-overlay/s6-rc.d/esphome/run
index 277f26ea49..775c2fa0d6 100755
--- a/docker/ha-addon-rootfs/etc/s6-overlay/s6-rc.d/esphome/run
+++ b/docker/ha-addon-rootfs/etc/s6-overlay/s6-rc.d/esphome/run
@@ -35,11 +35,16 @@ if bashio::config.has_value 'default_compile_process_limit'; then
     export ESPHOME_DEFAULT_COMPILE_PROCESS_LIMIT=$(bashio::config 'default_compile_process_limit')
 else
     if grep -q 'Raspberry Pi 3' /proc/cpuinfo; then
-        export ESPHOME_DEFAULT_COMPILE_PROCESS_LIMIT=1;
+        export ESPHOME_DEFAULT_COMPILE_PROCESS_LIMIT=1
     fi
 fi
 
 mkdir -p "${pio_cache_base}"
 
+if bashio::fs.directory_exists '/config/esphome/.esphome'; then
+    bashio::log.info "Removing old .esphome directory..."
+    rm -rf /config/esphome/.esphome
+fi
+
 bashio::log.info "Starting ESPHome dashboard..."
 exec esphome dashboard /config/esphome --socket /var/run/esphome.sock --ha-addon
diff --git a/esphome/components/font/__init__.py b/esphome/components/font/__init__.py
index 52f877d986..e6244d8d44 100644
--- a/esphome/components/font/__init__.py
+++ b/esphome/components/font/__init__.py
@@ -98,10 +98,9 @@ def validate_truetype_file(value):
 
 
 def _compute_local_font_dir(name) -> Path:
-    base_dir = Path(CORE.config_dir) / ".esphome" / DOMAIN
     h = hashlib.new("sha256")
     h.update(name.encode())
-    return base_dir / h.hexdigest()[:8]
+    return Path(CORE.data_dir) / DOMAIN / h.hexdigest()[:8]
 
 
 def _compute_gfonts_local_path(value) -> Path:
diff --git a/esphome/components/image/__init__.py b/esphome/components/image/__init__.py
index 392efb18a2..aa402ee329 100644
--- a/esphome/components/image/__init__.py
+++ b/esphome/components/image/__init__.py
@@ -52,7 +52,7 @@ Image_ = image_ns.class_("Image")
 
 
 def _compute_local_icon_path(value) -> Path:
-    base_dir = Path(CORE.config_dir) / ".esphome" / DOMAIN / "mdi"
+    base_dir = Path(CORE.data_dir) / DOMAIN / "mdi"
     return base_dir / f"{value[CONF_ICON]}.svg"
 
 
diff --git a/esphome/components/shelly_dimmer/light.py b/esphome/components/shelly_dimmer/light.py
index c49193d135..467a3c3531 100644
--- a/esphome/components/shelly_dimmer/light.py
+++ b/esphome/components/shelly_dimmer/light.py
@@ -87,12 +87,7 @@ def get_firmware(value):
     url = value[CONF_URL]
 
     if CONF_SHA256 in value:  # we have a hash, enable caching
-        path = (
-            Path(CORE.config_dir)
-            / ".esphome"
-            / DOMAIN
-            / (value[CONF_SHA256] + "_fw_stm.bin")
-        )
+        path = Path(CORE.data_dir) / DOMAIN / (value[CONF_SHA256] + "_fw_stm.bin")
 
         if not path.is_file():
             firmware_data, dl_hash = dl(url)
diff --git a/esphome/core/__init__.py b/esphome/core/__init__.py
index d9b1603894..cca758e3c1 100644
--- a/esphome/core/__init__.py
+++ b/esphome/core/__init__.py
@@ -554,6 +554,12 @@ class EsphomeCore:
     def config_dir(self):
         return os.path.dirname(self.config_path)
 
+    @property
+    def data_dir(self):
+        if is_ha_addon():
+            return os.path.join("/data")
+        return self.relative_config_path(".esphome")
+
     @property
     def config_filename(self):
         return os.path.basename(self.config_path)
@@ -563,7 +569,7 @@ class EsphomeCore:
         return os.path.join(self.config_dir, path_)
 
     def relative_internal_path(self, *path: str) -> str:
-        return self.relative_config_path(".esphome", *path)
+        return os.path.join(self.data_dir, *path)
 
     def relative_build_path(self, *path):
         path_ = os.path.expanduser(os.path.join(*path))
@@ -573,13 +579,9 @@ class EsphomeCore:
         return self.relative_build_path("src", *path)
 
     def relative_pioenvs_path(self, *path):
-        if is_ha_addon():
-            return os.path.join("/data", self.name, ".pioenvs", *path)
         return self.relative_build_path(".pioenvs", *path)
 
     def relative_piolibdeps_path(self, *path):
-        if is_ha_addon():
-            return os.path.join("/data", self.name, ".piolibdeps", *path)
         return self.relative_build_path(".piolibdeps", *path)
 
     @property
diff --git a/esphome/core/config.py b/esphome/core/config.py
index a09252e4b4..1625644092 100644
--- a/esphome/core/config.py
+++ b/esphome/core/config.py
@@ -198,8 +198,8 @@ def preload_core_config(config, result):
     CORE.data[KEY_CORE] = {}
 
     if CONF_BUILD_PATH not in conf:
-        conf[CONF_BUILD_PATH] = f".esphome/build/{CORE.name}"
-    CORE.build_path = CORE.relative_config_path(conf[CONF_BUILD_PATH])
+        conf[CONF_BUILD_PATH] = f"build/{CORE.name}"
+    CORE.build_path = CORE.relative_internal_path(conf[CONF_BUILD_PATH])
 
     has_oldstyle = CONF_PLATFORM in conf
     newstyle_found = [key for key in TARGET_PLATFORMS if key in config]
diff --git a/esphome/dashboard/dashboard.py b/esphome/dashboard/dashboard.py
index cacd5e2db0..8049fb7f4c 100644
--- a/esphome/dashboard/dashboard.py
+++ b/esphome/dashboard/dashboard.py
@@ -32,6 +32,7 @@ import yaml
 from tornado.log import access_log
 
 from esphome import const, platformio_api, util, yaml_util
+from esphome.core import CORE
 from esphome.helpers import get_bool_env, mkdir_p, run_system_command
 from esphome.storage_json import (
     EsphomeStorageJSON,
@@ -70,6 +71,7 @@ class DashboardSettings:
             self.password_hash = password_hash(password)
         self.config_dir = args.configuration
         self.absolute_config_dir = Path(self.config_dir).resolve()
+        CORE.config_path = os.path.join(self.config_dir, ".")
 
     @property
     def relative_url(self):
@@ -534,7 +536,7 @@ class DownloadListRequestHandler(BaseHandler):
     @authenticated
     @bind_config
     def get(self, configuration=None):
-        storage_path = ext_storage_path(settings.config_dir, configuration)
+        storage_path = ext_storage_path(configuration)
         storage_json = StorageJSON.load(storage_path)
         if storage_json is None:
             self.send_error(404)
@@ -577,7 +579,7 @@ class DownloadBinaryRequestHandler(BaseHandler):
     def get(self, configuration=None):
         compressed = self.get_argument("compressed", "0") == "1"
 
-        storage_path = ext_storage_path(settings.config_dir, configuration)
+        storage_path = ext_storage_path(configuration)
         storage_json = StorageJSON.load(storage_path)
         if storage_json is None:
             self.send_error(404)
@@ -666,9 +668,7 @@ class DashboardEntry:
     @property
     def storage(self) -> Optional[StorageJSON]:
         if not self._loaded_storage:
-            self._storage = StorageJSON.load(
-                ext_storage_path(settings.config_dir, self.filename)
-            )
+            self._storage = StorageJSON.load(ext_storage_path(self.filename))
             self._loaded_storage = True
         return self._storage
 
@@ -1044,9 +1044,9 @@ class DeleteRequestHandler(BaseHandler):
     @bind_config
     def post(self, configuration=None):
         config_file = settings.rel_path(configuration)
-        storage_path = ext_storage_path(settings.config_dir, configuration)
+        storage_path = ext_storage_path(configuration)
 
-        trash_path = trash_storage_path(settings.config_dir)
+        trash_path = trash_storage_path()
         mkdir_p(trash_path)
         shutil.move(config_file, os.path.join(trash_path, configuration))
 
@@ -1067,7 +1067,7 @@ class UndoDeleteRequestHandler(BaseHandler):
     @bind_config
     def post(self, configuration=None):
         config_file = settings.rel_path(configuration)
-        trash_path = trash_storage_path(settings.config_dir)
+        trash_path = trash_storage_path()
         shutil.move(os.path.join(trash_path, configuration), config_file)
 
 
@@ -1325,10 +1325,9 @@ def make_app(debug=get_bool_env(ENV_DEV)):
 
 def start_web_server(args):
     settings.parse_args(args)
-    mkdir_p(settings.rel_path(".esphome"))
 
     if settings.using_auth:
-        path = esphome_storage_path(settings.config_dir)
+        path = esphome_storage_path()
         storage = EsphomeStorageJSON.load(path)
         if storage is None:
             storage = EsphomeStorageJSON.get_default()
diff --git a/esphome/git.py b/esphome/git.py
index dcc3e4d0c8..4f0911233e 100644
--- a/esphome/git.py
+++ b/esphome/git.py
@@ -35,7 +35,7 @@ def run_git_command(cmd, cwd=None) -> str:
 
 
 def _compute_destination_path(key: str, domain: str) -> Path:
-    base_dir = Path(CORE.config_dir) / ".esphome" / domain
+    base_dir = Path(CORE.data_dir) / domain
     h = hashlib.new("sha256")
     h.update(key.encode())
     return base_dir / h.hexdigest()[:8]
diff --git a/esphome/storage_json.py b/esphome/storage_json.py
index acf525203d..a2619cb536 100644
--- a/esphome/storage_json.py
+++ b/esphome/storage_json.py
@@ -22,19 +22,19 @@ _LOGGER = logging.getLogger(__name__)
 
 
 def storage_path() -> str:
-    return CORE.relative_internal_path(f"{CORE.config_filename}.json")
+    return os.path.join(CORE.data_dir, "storage", f"{CORE.config_filename}.json")
 
 
-def ext_storage_path(base_path: str, config_filename: str) -> str:
-    return os.path.join(base_path, ".esphome", f"{config_filename}.json")
+def ext_storage_path(config_filename: str) -> str:
+    return os.path.join(CORE.data_dir, "storage", f"{config_filename}.json")
 
 
-def esphome_storage_path(base_path: str) -> str:
-    return os.path.join(base_path, ".esphome", "esphome.json")
+def esphome_storage_path() -> str:
+    return os.path.join(CORE.data_dir, "esphome.json")
 
 
-def trash_storage_path(base_path: str) -> str:
-    return os.path.join(base_path, ".esphome", "trash")
+def trash_storage_path() -> str:
+    return CORE.relative_config_path("trash")
 
 
 class StorageJSON:
diff --git a/esphome/wizard.py b/esphome/wizard.py
index 17a0882e1c..aa05e513a7 100644
--- a/esphome/wizard.py
+++ b/esphome/wizard.py
@@ -6,12 +6,12 @@ import unicodedata
 import voluptuous as vol
 
 import esphome.config_validation as cv
+from esphome.const import ALLOWED_NAME_CHARS, ENV_QUICKWIZARD
+from esphome.core import CORE
 from esphome.helpers import get_bool_env, write_file
-from esphome.log import color, Fore
-
+from esphome.log import Fore, color
 from esphome.storage_json import StorageJSON, ext_storage_path
 from esphome.util import safe_print
-from esphome.const import ALLOWED_NAME_CHARS, ENV_QUICKWIZARD
 
 CORE_BIG = r"""    _____ ____  _____  ______
    / ____/ __ \|  __ \|  ____|
@@ -193,10 +193,10 @@ captive_portal:
 
 
 def wizard_write(path, **kwargs):
-    from esphome.components.esp8266 import boards as esp8266_boards
-    from esphome.components.esp32 import boards as esp32_boards
-    from esphome.components.rp2040 import boards as rp2040_boards
     from esphome.components.bk72xx import boards as bk72xx_boards
+    from esphome.components.esp32 import boards as esp32_boards
+    from esphome.components.esp8266 import boards as esp8266_boards
+    from esphome.components.rp2040 import boards as rp2040_boards
     from esphome.components.rtl87xx import boards as rtl87xx_boards
 
     name = kwargs["name"]
@@ -225,7 +225,7 @@ def wizard_write(path, **kwargs):
 
     write_file(path, wizard_file(**kwargs))
     storage = StorageJSON.from_wizard(name, name, f"{name}.local", hardware)
-    storage_path = ext_storage_path(os.path.dirname(path), os.path.basename(path))
+    storage_path = ext_storage_path(os.path.basename(path))
     storage.save(storage_path)
 
     return True
@@ -265,9 +265,9 @@ def strip_accents(value):
 
 
 def wizard(path):
+    from esphome.components.bk72xx import boards as bk72xx_boards
     from esphome.components.esp32 import boards as esp32_boards
     from esphome.components.esp8266 import boards as esp8266_boards
-    from esphome.components.bk72xx import boards as bk72xx_boards
     from esphome.components.rtl87xx import boards as rtl87xx_boards
 
     if not path.endswith(".yaml") and not path.endswith(".yml"):
@@ -280,6 +280,9 @@ def wizard(path):
             f"Uh oh, it seems like {color(Fore.CYAN, path)} already exists, please delete that file first or chose another configuration file."
         )
         return 2
+
+    CORE.config_path = path
+
     safe_print("Hi there!")
     sleep(1.5)
     safe_print("I'm the wizard of ESPHome :)")
diff --git a/tests/unit_tests/test_wizard.py b/tests/unit_tests/test_wizard.py
index d94624d1e4..8bbce08ae5 100644
--- a/tests/unit_tests/test_wizard.py
+++ b/tests/unit_tests/test_wizard.py
@@ -1,7 +1,9 @@
 """Tests for the wizard.py file."""
+import os
 
 import esphome.wizard as wz
 import pytest
+from esphome.core import CORE
 from esphome.components.esp8266.boards import ESP8266_BOARD_PINS
 from esphome.components.esp32.boards import ESP32_BOARD_PINS
 from esphome.components.bk72xx.boards import BK72XX_BOARD_PINS
@@ -110,6 +112,7 @@ def test_wizard_write_sets_platform(default_config, tmp_path, monkeypatch):
     # Given
     del default_config["platform"]
     monkeypatch.setattr(wz, "write_file", MagicMock())
+    monkeypatch.setattr(CORE, "config_path", os.path.dirname(tmp_path))
 
     # When
     wz.wizard_write(tmp_path, **default_config)
@@ -130,6 +133,7 @@ def test_wizard_write_defaults_platform_from_board_esp8266(
     default_config["board"] = [*ESP8266_BOARD_PINS][0]
 
     monkeypatch.setattr(wz, "write_file", MagicMock())
+    monkeypatch.setattr(CORE, "config_path", os.path.dirname(tmp_path))
 
     # When
     wz.wizard_write(tmp_path, **default_config)
@@ -150,6 +154,7 @@ def test_wizard_write_defaults_platform_from_board_esp32(
     default_config["board"] = [*ESP32_BOARD_PINS][0]
 
     monkeypatch.setattr(wz, "write_file", MagicMock())
+    monkeypatch.setattr(CORE, "config_path", os.path.dirname(tmp_path))
 
     # When
     wz.wizard_write(tmp_path, **default_config)
@@ -170,6 +175,7 @@ def test_wizard_write_defaults_platform_from_board_bk72xx(
     default_config["board"] = [*BK72XX_BOARD_PINS][0]
 
     monkeypatch.setattr(wz, "write_file", MagicMock())
+    monkeypatch.setattr(CORE, "config_path", os.path.dirname(tmp_path))
 
     # When
     wz.wizard_write(tmp_path, **default_config)
@@ -190,6 +196,7 @@ def test_wizard_write_defaults_platform_from_board_rtl87xx(
     default_config["board"] = [*RTL87XX_BOARD_PINS][0]
 
     monkeypatch.setattr(wz, "write_file", MagicMock())
+    monkeypatch.setattr(CORE, "config_path", os.path.dirname(tmp_path))
 
     # When
     wz.wizard_write(tmp_path, **default_config)