A barndominium is a home built inside a barn or barn-like structure. Barndominiums have become increasingly popular in recent years as an affordable and unique housing option. But are barndominiums really worth investing in? There are pros and cons to consider when deciding if a barndominium is right for you.
What is a Barndominium?
A barndominium is essentially a home built within the frame of a metal barn or shed. The exterior maintains the barn aesthetic, while the interior is finished like any other house with drywall, insulation, electricity, plumbing, bedrooms, bathrooms, a kitchen, and living spaces.
Barndominiums are often more affordable to build than a traditional home because they utilize cost-effective metal barn structures and cheaper finishes like concrete floors. Many people choose to build barndominiums themselves as owner-builders to save on labor costs.
What are the Pros of Barndominiums?
Here are some of the main benefits that make barndominiums an attractive housing choice for many homeowners:
- Cost – Barndominiums are generally less expensive per square foot than a traditional house.
- Customizable – Owners can build and design them to suit their unique needs and tastes.
- Efficient use of space – The open concept allows for flexible living and storage options.
- Durable & low maintenance – Steel barns require less upkeep than wood structures.
- Energy efficient – Metal envelopes and strategic insulation placement make them energy smart.
- Appreciation potential – Barndos often hold value better than mobile or manufactured homes.
What are the Cons of Barndominiums?
There are also some potential downsides to weigh when considering a barndominium:
- Permitting & zoning issues – Many areas don’t allow homes in metal barns or have size limits.
- Heat and cold – Large, uninsulated metal structures can get very hot or very cold.
- Moisture & condensation – Barns need adequate ventilation to control humidity.
- Insurance challenges – Some insurers view barndominiums as higher risk.
- Resale concerns – Barndos have niche appeal and may be harder to sell.
- Rural locations – Not ideal for urban or dense suburban neighborhoods.
Cost Comparison
One of the biggest selling points of a barndominium is its affordability compared to a conventional home build. Let’s break down the typical costs:
Barndominium Costs
| Expense | Average Cost |
|---|---|
| Metal barn kit | $20,000 – $70,000 |
| Concrete slab foundation | $5,000 – $15,000 |
| Framing & insulation | $10,000 – $25,000 |
| Plumbing system | $5,000 – $12,000 |
| HVAC system | $8,000 – $15,000 |
| Electric & lighting | $5,000 – $10,000 |
| Drywall & interior finish | $10,000 – $25,000 |
| Appliances & furnishings | $5,000 – $15,000 |
| Total Cost | $70,000 – $200,000 |
As you can see, a basic barndominium can be built for under $100,000 in many cases, while nicer finishes and larger sizes can reach up to $200,000.
Traditional Home Costs
Here’s how the costs of a typical 2,000 square foot traditional home compare:
| Expense | Average Cost |
|---|---|
| Land acquisition | $15,000 – $150,000 |
| Permits & fees | $2,000 – $5,000 |
| Site prep & foundation | $15,000 – $25,000 |
| Framing & roofing | $25,000 – $50,000 |
| Exterior finish | $15,000 – $25,000 |
| Plumbing | $10,000 – $15,000 |
| HVAC | $8,000 – $12,000 |
| Electrical | $8,000 – $15,000 |
| Drywall & interior finish | $15,000 – $25,000 |
| Flooring | $5,000 – $15,000 |
| Landscaping | $5,000 – $20,000 |
| Total Cost | $150,000 – $450,000 |
The wide range in pricing depends on factors like location, finishes, and customization. But it’s reasonable to expect to pay $200,000 to $300,000 for a basic family home in many housing markets.
Key Takeaways on Cost
When comparing the numbers side-by-side, barndominiums are clearly the more budget-friendly option in most cases. Some key points:
– Barndos cost $100-150/sq ft on average compared to $150-200+/sq ft for conventional builds.
– Land acquisition is not needed for a barndominium since it can be built on an existing property. This saves a huge upfront cost.
– Slab foundations and metal barn kits offset the high expense of wood framing and finishes.
– Owner-builders save significantly on labor by doing work themselves.
For those looking to maximize their budget, a barndominium provides more home for less money in many housing markets.
Customization
One of the things that makes barndominiums so appealing is the ability to customize them to your unique needs and preferences.
Floor Plan Flexibility
Unlike tradition homes that are limited by existing layouts, barndominium floor plans can be designed from scratch. You can work directly with a metal barn manufacturer to create the perfect footprint for your living needs.
Want huge great rooms with 20+ foot ceilings? No problem. Need a dedicated hobby workshop or garage space? You can integrate it seamlessly. With smart interior layouts, even modestly sized barns can feel spacious and open.
You’re only limited by the dimensions of the barn itself, so you can scale it to your budget and spatial requirements.
Interior Finishes
While many barndominium owners opt for budget-friendly finishes like exposed beams, polished concrete floors, and corrugated metal accents, you can customize the interior too.
Drywall, tile, luxury vinyl plank flooring, and other finishes allow you to have any interior look you want. You can make a barndo feel modern, farmhouse, industrial, traditional, or a blend. The choice is yours.
Using higher-end appliances, fixtures, and furnishings elevates a barndominium just like any other home. An open concept floor plan and volume ceilings provide a feeling of grandeur.
Exterior Options
Barndominiums allow you to get creative on the outside too. Some exterior enhancement options include:
– Mix of metal paneling and natural wood siding
– Barn style windows, entry doors, and garage doors
– Exterior stonework or brick accents
– Shutters, flowerboxes, and other architectural details
– Patios, decks, porches, and outdoor living areas
While the basic barn structure remains, you can upgrade the exterior as much or as little as you want.
Resale Value & Appreciation
Understandably, most people have concerns about how a unique property like a barndominium will hold its value. Let’s look at resale potential:
Used Barndominium Prices
Pricing on completed barndominiums currently on the market provides insights into real-world value:
| Location | Specs | Asking Price |
|---|---|---|
| Texas | 2 Br/2 Ba, 1,500 sqft | $185,000 |
| Oklahoma | 3 Br/2 Ba, 2,000 sqft | $275,000 |
| Montana | 4 Br/3 Ba, 2,800 sqft | $315,000 |
| Michigan | 3 Br/2 Ba, 1,800 sqft | $195,000 |
| Missouri | 4 Br/3 Ba, 3,000 sqft | $359,000 |
These real asking prices demonstrate that finished barndos recoup their construction costs and carry a typical sales markup. Their value is on par with traditional homes.
Appreciation Over Time
It’s harder to predict long-term appreciation on alternative housing like barndominiums. But here are a few key factors that support their ongoing value:
– Desirable amenities – Barndos offer features buyers want like space, customization, and rural settings.
– Durable materials – Steel structures and concrete last longer than wood framing and foundations.
– Increasing demand – Interest in barndominiums remains very strong, ensuring a healthy resale market.
– Good alternatives – Barndos hold value better than comparably priced manufactured homes.
– Cost savings – The ongoing utility and maintenance affordability help justify pricing.
– Strong rents – Many barndos would rent well at 50-100% above mortgage costs.
While there is some risk of localized dips, barndominiums stand a good chance of steady 1-2% annual appreciation on average.
Maximizing Resale Value
You can optimize future resale through smart design choices like:
– Good layout – Flowing floor plan with separated bedrooms and living areas.
– Flex space – Areas that could function as a bedroom or office.
– Interesting exterior – Unique touches that set it apart.
– Quality finishes – Tile, wood floors, granite countertops, etc.
– Move-in ready – Fully finished space without need for improvements.
– Energy-efficient – Insulation, HVAC systems, and appliances.
– Marketable location – Close enough to things but with acreage.
– Property improvements – Landscaping, fencing, outbuildings, etc.
A barndo enhanced with these desirable features will attract top dollar when it comes time to sell.
Are Barndominiums a Good Investment?
The Verdict
Given the points we’ve covered, barndominiums can definitely make a smart and profitable investment if executed properly.
The cost savings over traditional construction are compelling, especially for owner-builders who self-finance sweat equity. Customization provides a personalized home tailored to your needs.
While resale value involves some risk, existing sales numbers and appreciation factors suggest barndos hold their worth nicely. And you always have the option to lease if selling becomes problematic.
Who Should Consider a Barndo?
Barndominiums offer the best value for certain buyers:
– Owner-builders able to self-finance construction.
– Those with ample existing property or land on which to build.
– People who value affordability and customization over finishes.
– Families and retirees seeking comfortable rural living.
– Equestrian lovers, hobbyists, and small farm owners.
– Real estate investors open to alternative assets.
For the right property owner, a barndominium provides attractive benefits as both a home and investment.
Maximizing Value as an Asset
If taking a long-term investment outlook, it helps to:
– Build on owned land to control costs.
– Design for broader market appeal.
– Use quality finishes and materials that improve durability.
– Incorporate income potential through detached living spaces.
– Focus on lower maintenance features.
– Construct additional storage/garage areas that add utility.
With strategic development, a barndo can pay dividends for years to come.
Conclusion
Barndominiums aren’t for everyone. But for those prioritizing customization and cost savings in a rural setting, they can be an extremely smart choice.
Careful planning and construction is necessary to maximize livability, rentability, and future resale value. When done well, barndos deliver excellent bang for your buck.
They provide a modern, comfortable home at a reasonable price point. For the handy DIYer willing to take on a non-traditional build, a barndominium is absolutely worth considering.