Can I build a PC with 32GB of DDR5 for $1,200?

It's possible, but the RAM price makes a big difference to the rest of the build. Some 32GB DDR5 kits were quoted around $350 to $450, which would leave $750 to $850 for everything else. Check current prices rather than assuming those figures still hold.

For VR, I'd work backward from the graphics card you need for the games and headset you plan to use. Add the CPU, compatible motherboard, power supply, storage and case, then see whether a 32GB kit fits. A cheap RAM kit doesn't help much if the remaining budget forces too big a compromise on the GPU.

Check CPU, motherboard and RAM bundles, especially if you live near a store that sells them. A bundle can change the math enough to make DDR5 viable, but compare the total against buying the same parts separately.

Used parts could make this work, though it takes more hunting and adds some risk. A used GPU and a cheaper micro-ATX board or case may free up room for the RAM. Check condition and compatibility before buying, and leave enough in the budget for a suitable power supply and storage.

If 32GB matters more than DDR5 specifically, look at a DDR4 build too. An AM4 motherboard and compatible CPU could leave more money for graphics, which is useful for VR. DDR4 and DDR5 aren't interchangeable, so pick the platform and memory together.

Don't rule out a prebuilt just because the original plan was to build. Compare the full specifications and final price against your parts list, including whether it actually comes with 32GB and a GPU suitable for the VR games you want to run.