As real estate trends evolve and homeowners seek innovative alternatives to traditional housing, the barndominium—an architectural hybrid of barn and condominium—has emerged as a popular choice. Once considered a rural novelty, barndominiums are now making waves across suburbs and even some urban fringes. But a question many prospective homeowners, investors, and developers often ask is: Does a barndominium increase property value?
The short answer is: Yes, but it depends on several critical factors. Like any real estate investment, the value of a barndominium is influenced by location, construction quality, market demand, amenities, and how well the home fits into its surrounding area. This article explores in depth how and why a barndominium can add value to your property—and when it might not.
Understanding the Basics: What Is a Barndominium?
A barndominium, often called a “barndo,” is a type of metal or steel-frame building that combines living quarters with workshop, storage, or even recreational space. Originally designed for functionality and affordability, barndominiums have evolved into stylish, energy-efficient homes that offer open-concept layouts, high ceilings, and rustic-modern aesthetics.
Many barndominiums come with custom features such as:
- Expansive garages or workshops
- Wraparound porches
- Lofted living areas
- Energy-efficient windows and insulation
- Polished concrete or hardwood floors
- High-end kitchen and bathroom finishes
Key Factors That Influence Property Value of a Barndominium
- Location, Location, Location
As with all real estate, location plays a huge role in determining property value. In rural or semi-rural areas where land is abundant and traditional housing stock is limited, barndominiums can significantly boost property value. Their durability and multifunctional design make them highly desirable.
However, in more urbanized or HOA-governed neighborhoods, a barndominium might not be viewed as positively—especially if it doesn’t align with surrounding architectural styles. Some zoning laws or building codes might even limit resale potential.
Pro Tip: Choose your location wisely and ensure local building codes permit barndominium-style construction.
- Cost-Effective Construction Can Lead to Greater ROI
One of the main reasons barndominiums are popular is that they are often more affordable to build than traditional homes. According to various builders, you can save anywhere from 20% to 40% on construction costs by opting for a barndominium.
That initial cost savings can directly translate into a higher return on investment (ROI). When you spend less to build but maintain high-quality design and finishes, your margin between cost and market value increases.
- Modern Features and Energy Efficiency
Today’s barndominiums are far from basic barns. Many feature:
- Solar panels
- High R-value insulation
- Energy Star appliances
- Smart home technology
These features not only reduce utility costs but also appeal to environmentally conscious buyers. Properties that are energy-efficient tend to retain and even increase value more reliably over time.
- Customization and Flexibility
Barndominiums are highly customizable. This allows homeowners to design flexible spaces that can serve multiple purposes—living, working, storage, and recreation—all under one roof.
This versatility makes barndominiums attractive to a wide range of buyers, from families and remote workers to small business owners and hobbyists. The more potential use cases a home has, the more buyers it can attract—driving up property value.
- Durability and Low Maintenance
Steel-framed barndominiums are typically more durable than traditional wood-framed homes. They resist fire, mold, termites, and extreme weather better. That kind of longevity means less money spent on repairs and upkeep, which buyers recognize as a valuable asset.
In turn, this low-maintenance aspect can boost appraisal values and future resale price points.
When a Barndominium Might Not Increase Property Value
Despite their advantages, barndominiums aren’t always a guaranteed value booster. Here’s when a barndo might fall short:
- Lack of Comparable Sales (Comps)
In some areas, especially suburban or urban markets, there may be few or no comparable barndominium sales. This lack of comps can make it difficult for appraisers to accurately determine market value, potentially lowering what banks are willing to finance or what buyers are willing to pay.
- Poor Construction Quality
Not all barndominiums are built the same. If the builder cuts corners—using low-quality materials, failing to meet code, or skimping on insulation or ventilation—it can severely affect the home’s long-term value.
- Overbuilding for the Area
If your barndominium is the only upscale home in an otherwise underdeveloped or low-demand area, you may not recoup your full investment. Always consider surrounding property values before investing heavily in luxury upgrades.
Appraisals and Financing: Are Barndominiums Treated Differently?
Yes, but the landscape is changing.
Historically, lenders and appraisers have struggled to evaluate barndominiums because they fall outside the traditional home categories. However, as barndos grow in popularity, more financial institutions are beginning to offer:
- Specialized construction loans
- Land/home combo loans
- USDA and VA loans (in qualifying rural areas)
To ensure maximum property value, it’s crucial to:
- Work with an appraiser familiar with barndominiums
- Keep detailed records of materials, construction costs, and upgrades
- Obtain permits and inspections throughout the build process
Future-Proofing Your Barndominium for Value Growth
To maximize your barndominium’s impact on property value, consider incorporating the following features:
- Curb Appeal: Landscaped surroundings, attractive exterior finishes (e.g., board and batten siding, stonework), and a welcoming front entrance.
- Interior Quality: High-end finishes like granite countertops, hardwood floors, modern fixtures, and energy-efficient windows.
- Smart Design: Open floor plans, multi-use rooms, and ample natural light.
- Storage: Built-in closets, pantries, or even a detached shed or garage to enhance utility.
- Outdoor Living: Decks, porches, pools, or outdoor kitchens can significantly increase value.
Resale Trends: Who’s Buying Barndominiums?
Barndominiums appeal to a diverse buyer demographic:
- Young Families: Attracted to affordability and flexible space.
- Remote Workers: Love the ability to combine home and workspace.
- Retirees: Looking to downsize without sacrificing lifestyle.
- Investors: Eyeing barndos as Airbnb or rental properties in rural vacation areas.
This broad buyer interest strengthens long-term resale potential.
Conclusion: Yes, Barndominiums Can Increase Property Value—With the Right Strategy
When thoughtfully designed and well-located, a barndominium can absolutely increase your property’s value. They offer:
- Lower building costs
- Long-term durability
- Energy efficiency
- Unique appeal
- Multi-functional living
However, maximizing value requires a strategic approach—understanding your local market, choosing quality construction, and future-proofing your design. For those who plan wisely, barndominiums can be not only a stylish and comfortable home but a smart and lucrative real estate investment.
Thinking of building a barndominium?
Consider working with a designer or builder who specializes in barndos and understands what features bring the most value. Whether it’s for living, investing, or reselling, your barndominium can be more than just a home—it can be a powerful asset.