Are Barndominiums a Good Investment? | JJ's Custom Builders (2024)

Known for being less expensive and quicker to build than traditional homes, Barndominiums have become popular among those looking to build their dream house uniquely and cost-effectively. But, you may want to know if Barndominiums are a worthwhile investment or a passing trend.

Here are just a few reasons why Barndominiums are a solid investment:

More Affordable

Typically, Barndominiums are less expensive to build than a traditional homes with the same square footage. According to HomeAdvisor, the average square footage cost of a Barndominium is lower than the average cost of a conventional custom home.

Lower construction costs lead to other benefits, as well. Because of the lower price, you may not need to borrow as much from a lender. Smaller down payments and lower mortgage payments are expected compared to a traditional home of comparable size.

If you are a landlord, lower construction costs can help you recoup your initial investment more quickly than renting out a traditional home. Homes typically rent based on square footage and the types of amenities they offer. A 2,000-square-foot Barndominium will likely rent for the same amount of money as a 2,000-square-foot standard house, yet it will cost far less to build.

Additionally, Barndominiums often require less maintenance and upkeep due to the materials used. They stay strong and look great with very little work. This leads to additional savings throughout the life of the home.

More Durable

Because Barndominiums have steel frames and metal siding, they are significantly more durable than most standard homes. They may even withstand severe weather, including tornadoes, hurricanes, and fires. Metal homes can handle winds up to 170mph, whereas a traditional home can only withstand winds up to 80mph before windows shatter and the structure begins to creak. Some of the most common household repairs include fixing damage to roofing and siding. With a Barndominium, you don’t have to worry about that. Spending less on maintenance makes owning a Barndominium a better investment for homeowners.

Increased Energy Efficiency

Barndominiums provide homeowners with more heating and cooling options, maximizing energy efficiency. While a steel frame is not more efficient, the deep wall cavities in Barndominiums can accommodate thicker insulation. They can also be built with underfloor heating, open floor plans, and other features that improve heating and cooling. Increasing energy efficiency means lower utility costs and more savings for Barndominium homeowners.

Increasing Popularity

Resale value is often a concern when deciding whether a Barndominium is a good investment. Traditional homes (on average) appreciate at a rate of 4% per year (currently 14.5%- however, the real estate market is in a unique position). However, Barndominiums are relatively new. And, there aren’t as many Barndominiums on the market (as there are regular homes) to compare. As such, it is more difficult to assess the resale value of a Barndominium. Unlike modular homes and trailers, Barndominiums maintain their value and are likely to increase over time.

If you are purely looking for a quick resale investment, a Barndominium may not be your best option. But, if you are hoping to build a long-term home for yourself or to invest by renting out your Barndominium, a Barndominium could be an excellent choice and long-term investment.

Given the many benefits of Barndominiums, they are an excellent option for both investors and homeowners. They provide more houses for less money and are often built more quickly than a traditional home. They are also highly customizable and can be tailored to fit your unique needs.

If you want to start planning your Barndominium layout, contact us today to get a free consultation with one of our designers.

The first step is a phone consultation.
If needed, we will meet with you in person as well!


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Are Barndominiums a Good Investment? | JJ's Custom Builders (2024)


Are Barndominiums a Good Investment? | JJ's Custom Builders? ›

More Durable

Are barndominiums good investments? ›

In summary, barndominiums make wise value investments thanks to lower initial costs per square foot, flexible use cases, and rising property demands over upcoming years as inventories remain limited. Position your unique barndominium advantageously to reap financial returns for the decades ahead!

What is the downside of barndominiums? ›

Barndominiums May Lack Adequate Sound Insulation

A drawback worth mentioning about barndominiums is their potential for loudness. The primary material used in their construction is typically a thinner metal, which doesn't provide an effective sound barrier against outside noises.

Do barndominiums hold their value? ›

Barndominiums normally retain their resale value and may even increase in value gradually, although more slowly than a standard home. However, these homes are still rare in some parts of the country, and it may be challenging to get an accurate appraisal in an area where there are few.

How well do barndominiums appraise? ›

Thanks to their grandeur, a barndo could appraise a little higher than your traditional 3-bedroom suburban home. Of course, each property will vary as there is a lot of freedom in the building and design of a barndominium.

Is it hard to get a mortgage for a barndominium? ›

Difficulty obtaining USDA loan: Though far from impossible, obtaining a USDA loan for a barndominium may be challenging. Many USDA lenders are unfamiliar with these structures and may be reluctant to finance their purchase.

Are barndominiums hard to sell? ›

The design and layout of a barndominium can significantly impact its resale value. A well-designed barndominium with distinct features such as exposed beams or custom finishes will have higher resale value. On the other hand, poorly designed barndominiums may be harder to sell or have lower resale value.

What do I wish I knew before building a barndominium? ›

Here are the most important things to know about building a barndominium.
  • Obtain a permit for your project. Photo by Bridger Steel, Inc. ...
  • Test the paint. Photo by Justin Doyle Homes. ...
  • Prepare for surprise costs. ...
  • Plan for electrical work. ...
  • Choose your windows and doors wisely. ...
  • Add insulation—it's important.
Mar 14, 2022

What is the lifespan of a barndominium? ›

Longevity: Although they may not last as long as traditional homes, a well-maintained barndominium can provide comfortable living for around 50 years. 5. Durability: Barndominiums are built to withstand the elements, ensuring they remain sturdy and reliable over the years.

Why are barndominiums hard to finance? ›

Banks require appraisals to determine the property's value, which in turn, informs their lending decisions. Because barndominiums are relatively unique and fewer in number compared to traditional homes, finding comparable sales (comps) necessary for accurate valuation is difficult.

What is the most expensive part of a barndominium? ›

What is the most expensive part of building a barndominium? The most expensive part of building a barndominium is often the interior finishes. Customization, high-end materials, and intricate designs can significantly impact the overall cost.

Why are barndominiums so expensive? ›

The biggest cost of building a barndominium comes from purchasing and building the metal shell, including the roof, doors, and windows.

Is it cheaper to build a house or barndominium? ›

The most common estimate asserts that a new barndominium with basic amenities will cost about $30 to $40 per square foot to build, compared to the cost of building a traditional home is around $100 to $200 per square foot.

Are barndominiums prone to mold? ›

Barndominiums offer a blend of rustic aesthetics and modern living that appeals to many homeowners. However, like any other type of construction, they are susceptible to mold growth if not properly designed, constructed, and maintained.

Do barndominiums have equity? ›

Barndominiums, particularly those with steel frames, are increasingly recognized for their potential to accrue equity, largely due to their durability, energy efficiency, and the growing market demand for such properties.

How much do most barndominiums cost to build? ›

A barndominium typical costs between $112,800 and $540,000 to build, with homeowners across the country paying a national average cost of $265,000.

How many years do barndominiums last? ›

Depending on the materials used, a well-maintained barndominium can last anywhere from 50 to over 100 years. 2. Foundation: A solid foundation is essential for the longevity of any building, including barndominiums.

Is it cheaper to build a barndominium or buy a house? ›

Current estimates value an average 2000 square foot barndominium at around $200,000 USD making the average cost per square foot about $100.00. This is at the lower end of the price range for a similar traditionally built home, which is estimated to be between $110.00 to $170.00 dollars per square foot.

Do barndominiums depreciate in value? ›

That being said, barndominiums can still be great investments. In fact, barndos appreciate at about the same rate as commercial properties (about two to three percent per year in a regular market), and they generally do not depreciate in value.

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