When exploring alternatives to traditional home construction, barndominiums often emerge as a popular and intriguing option. Originally designed as metal buildings for agricultural or storage use, barndominiums—commonly referred to as “barndos”—have evolved into beautiful, modern homes that combine rustic charm with contemporary living. One of the most compelling reasons homeowners consider barndominiums is their potential to be more cost-effective than traditional homes. But are they truly cheaper?
In this blog post, we’ll dive deep into the costs associated with building and owning a barndominium versus a conventional house. We’ll examine upfront construction expenses, long-term savings, customization potential, maintenance needs, and hidden costs to help you decide which option is best for your budget and lifestyle.
1. Construction Costs: Barndominium vs. Traditional House
1.1. Average Cost per Square Foot
Barndominiums are generally more affordable on a per-square-foot basis. On average:
- Barndominium: $80 – $130 per sq. ft.
- Traditional Home: $120 – $200+ per sq. ft.
This means a 2,000 sq. ft. barndominium might cost between $160,000 and $260,000, while a similarly sized conventional house could range from $240,000 to $400,000 or more.
1.2. Simpler Construction
Barndominiums use steel frames and metal siding, which often come in prefabricated kits. This significantly reduces framing time and labor costs. In contrast, traditional homes require more intricate framing, roofing, and insulation steps, each demanding more materials and labor.
2. Time Efficiency = Cost Efficiency
2.1. Faster Build Times
One of the key cost-saving advantages of a barndominium is construction speed. Most barndominiums can be completed within 6 to 9 months, while a traditional home may take 12 months or more, depending on complexity and contractor availability.
Faster build times can mean:
- Fewer labor hours
- Lower interest on construction loans
- Faster move-in (reducing rent or double mortgage costs)
3. Materials and Design Flexibility
3.1. Material Costs
Barndominiums often utilize metal, which can be cheaper and more durable than traditional materials like wood or brick. While material prices fluctuate, steel kits offer consistent pricing, especially when purchased as a complete package.
3.2. Open-Concept Design
Barndominiums typically feature large, open floor plans, reducing the need for interior walls, structural supports, and complex architectural details. This design simplicity lowers material and labor costs while offering maximum flexibility for homeowners.
4. Foundation and Framing Differences
Traditional homes usually require a more substantial foundation due to wood framing and heavier roofing. Barndominiums, however, often use concrete slab foundations, which are:
- Less expensive to pour
- Faster to construct
- Better suited for flat, open land
The steel framing of a barndominium is also less labor-intensive than stick-built homes and requires fewer specialized skills.
5. Utility Installation and Insulation
5.1. Electrical and Plumbing
Installing plumbing and electrical in barndominiums is typically comparable to traditional homes, but access through metal walls and ceilings may require specialized fittings or techniques, which could slightly increase costs in this area.
5.2. Insulation Challenges
Metal buildings are more susceptible to temperature swings and condensation. Therefore, high-quality spray foam insulation or rigid board insulation is often necessary—costing more upfront but saving money long-term in energy bills.
6. Long-Term Maintenance and Durability
6.1. Maintenance
Metal buildings are known for their durability and low maintenance needs. Unlike wood-framed homes, barndominiums are:
- Resistant to termites, mold, and rot
- Less prone to fire damage
- Long-lasting with minimal upkeep
Traditional homes may require repainting, roof shingle replacement, wood repair, and pest control—all of which add to long-term expenses.
6.2. Roofing and Siding Longevity
Steel roofs and siding used in barndominiums can last 40–70 years, whereas asphalt shingles in traditional homes often need replacing every 15–30 years.
7. Customization Costs
While barndominiums offer flexibility, high-end finishes like granite countertops, hardwood flooring, custom cabinetry, and luxury bathrooms will drive up the cost—just like in traditional homes.
However, due to savings on the structure and exterior, barndominium owners often have more budget left for premium interior features.
8. Financing and Insurance Considerations
8.1. Financing Challenges
One potential downside is that barndominiums can be more difficult to finance. Some lenders consider them non-traditional properties, which might mean:
- Higher down payments
- Shorter loan terms
- Higher interest rates
However, this is changing as barndominiums grow in popularity. Rural lenders and credit unions are increasingly offering barndo-friendly loans.
8.2. Insurance Rates
Barndominiums can also be slightly more challenging to insure, especially in regions where metal buildings are less common. You may need to shop around for a provider that understands this type of home. That said, insurance premiums are often lower due to reduced fire and weather-related risks.
9. Zoning and Permitting Costs
Barndominiums may face unique zoning regulations or resistance from local authorities unfamiliar with them. Delays or added documentation could incur extra costs. Traditional homes, being more widely accepted, often have clearer paths through local permit offices.
10. Land and Site Preparation
Because barndominiums are often built on rural or undeveloped land, site preparation may include:
- Grading
- Access roads
- Septic systems
- Utility connections
These costs can apply to both types of homes, but rural builds may impact barndominium owners more, depending on location.
11. Hidden Costs to Consider
While barndominiums are cheaper in many ways, unexpected costs can still arise, including:
- Custom engineering for complex layouts
- Upgraded HVAC systems (to handle metal building heat transfer)
- Higher-quality finishes to meet resale expectations
- Additional insulation to meet local energy codes
It’s important to budget for these factors when estimating total cost.
12. Resale Value and Market Trends
Barndominiums are gaining in popularity and have become more widely accepted in real estate markets across the U.S., especially in Texas, Oklahoma, and parts of the Midwest and South.
While resale value depends on finishes, location, and demand, well-built barndominiums can match or exceed traditional homes in price per square foot, especially as homebuyers look for unique, efficient, and affordable alternatives.
Conclusion: Are Barndominiums Cheaper Than Traditional Homes?
In most cases, yes.
Barndominiums are generally cheaper to build and maintain than traditional houses, especially if you stick to a modest design and utilize a prefabricated steel kit. They offer significant cost savings in:
- Construction time
- Framing and foundation
- Maintenance and durability
- Material costs
However, these savings can be offset by:
- Custom finishes and luxury upgrades
- Insulation and HVAC needs
- Financing or insurance hurdles
For homeowners looking for a practical, cost-effective, and customizable home—especially in rural or semi-rural areas—a barndominium is a smart choice. Just be sure to plan thoroughly, budget for the hidden expenses, and consult with professionals familiar with this unique home style.
Thinking about building a barndominium?
Whether you’re exploring options or ready to break ground, understanding your true costs is key. Barndominiums can be an affordable, durable, and beautiful solution for modern living—if approached with the right plan.