Barndominium Cost Vs. House: Detailed Cost Comparison Guide

Building a home is expensive, but barndominiums (or “barndos”) can be a more affordable option. A 2,000-square-foot barndo costs around $200,000 ($100 per square foot), while a traditional home of the same size costs $220,000 to $340,000 ($110 to $170 per square foot).

Barndominiums are cheaper to build because they use metal frames and go up faster than regular homes. They also have open layouts with fewer walls, making them easy to customize. However, getting a loan or appraisal for a barndo can be tricky.

In this guide, we’ll compare barndos and traditional houses to help you decide which is the better investment.

Is a Barndominium Less Expensive Than a Regular House?

In some cases, barndominiums are cheaper to build than a house. Barndominiums have a quality that often makes them very customizable, which is that typical barndominiums are often constructed from a metal building. Metal structures are usually less expensive to construct than traditional buildings, which is one reason why they are used so much in commercial construction.

However, in many cases, the steel frame eliminates potential design issues by supporting the weight of the structure within the roof system. This can save the expense of bearing walls that might otherwise be required throughout the structure. It also adds to the flexibility of the interior design, allowing walls and partitions to be located virtually anywhere.

Which Is Better: Modular Home or Barndominium?

The answer often lies in the price and functionality. Barndos can be built from scratch, from an existing structure, and even from a kit. Modular homes, also known as prefabricated or pre-fabs, are constructed almost entirely off-site. 

For example, a modular home is (as the name implies) constructed from modules built in a factory setting. These modules can often be interchanged with one another, resulting in customizability without re-engineering the entire structure. Customers can select different modules from a design plan and move into the structure in short order.

Barndos often begin with a kit, and are sometimes modified as they are constructed. Barndo kits are generally faster to build than a similar building built from scratch, but there will often be design limitations since the kit will be based on a model.

Modular homes will often be priced about 15% below a comparable wood-frame home, which is in the same price range as a barndo. Historically, however, modular homes do not hold their value as well as either a wood frame home or a barndominium. In contrast, barndos tend to hold their value much like a wood frame home and use similar construction methods during much of the building process.

How Are Barndominiums Appraised?

The unique nature of barndominiums can have a frustrating effect on potential owners. In traditional financing, lenders can gather data on similar structures in similar areas to establish a baseline value from which to begin an appraisal. Since most wood frame homes use the same materials and are built essentially the same way, value is usually based on the number of square feet available.

With barndominiums, however, the project often starts out so dissimilar from a normally built home that it can make comparing the two quite difficult from a financing viewpoint. Therefore, in many cases, conventional financing can be difficult to obtain, especially without a substantial down payment.

Adding to the confusion is the fact that barndos are rarely grouped together, such as in a subdivision. One major contributing factor in the popularity of subdivisions is the predictability of future value. A home is usually the largest single purchase a person will make, and most buyers will make the purchase hoping the home will rise in value over time. This is why subdivisions have architectural committees and building restrictions. When a home is appraised for a potential sale, the latest sales figures for homes with similar square footage, location, and design will usually weigh heavily in the valuation, making the appraiser’s job easy.

Barndos often do not allow direct comparisons, as they are often very unique designs as well as sparsely available. These situations can greatly limit the ability of the appraiser to establish a value because of the small sample size from which to establish a baseline. As a result, some lenders find the evaluation too difficult and will decline to offer an attractive financing option. 

Average Cost Comparison: Barndo Vs. Traditional Home

A 2,000-square-foot barndominium costs about $200,000 ($100 per square foot), while a traditional home of the same size ranges from $220,000 to $340,000 ($110 to $170 per square foot). These costs can fluctuate based on material prices, labor rates, and customizations.

Why are barndos often cheaper?

• Faster construction: A barndominium’s metal shell goes up quickly, reducing labor costs.
• Fewer materials: Barndos don’t require as many interior load-bearing walls, allowing for open-concept designs without added expense.
• Cheaper roofing: Traditional homes often use asphalt shingles, costing $15,000 or more for a 2,000-square-foot home. Barndominiums commonly use metal roofing, which installs faster and costs up to 35% less.

However, some costs are higher for barndominiums. Special equipment and skilled labor are needed to assemble the steel frame, which can increase upfront costs. Financing and appraisals can also be more complex compared to traditional homes.

Bottom Line: Barndominiums are often more affordable upfront and require less maintenance, but costs vary based on location and customization.

House Vs. Barndo: In-Depth Cost Comparison

1. Design Costs

• A traditional home follows a standard construction process, with builders excavating and laying a perimeter foundation. This process can account for 20% or more of total construction costs.
• A barndominium, however, typically uses a monolithic slab foundation, where the concrete pad and footings are poured simultaneously. This approach saves 5% to 10% in up-front costs and speeds up construction. Additionally, barndos don’t require as many interior load-bearing walls, reducing design complexity.

2. Labor Costs

Barndominiums usually require less labor than traditional homes, but up-front costs can be higher due to the need for specialized equipment like cranes to assemble the steel frame.

• Traditional homes rely on carpenters, masons, and roofers, making labor 50% of total costs.
• Barndominiums often eliminate costly elements like brickwork and wooden framing, lowering labor costs to about 40% of total construction expenses.

However, barndos require skilled labor to erect the metal frame, which can increase costs depending on the location and contractor availability.

Bottom Line: While barndominiums often have lower labor costs overall, the specialized construction process can add to initial expenses.

Should I Build a New Barndominium or Renovate?

Building a barndominium from scratch is usually cheaper than renovating unless the existing structure is already a close match to your needs.

If more than 20% of an existing building needs modifications, the cost of demolition, rebuilding, and structural adjustments can quickly add up. In these cases, starting fresh is often the better financial decision.

✅ When to renovate:

• The existing structure is already a steel or barn-style building with a solid foundation.
• Only minor modifications (like interior walls and finishing touches) are needed.
• The building’s roof, insulation, and framework are in good condition.

🚧 When to build new:

• The structure needs major upgrades (new foundation, roof, or reinforcements).
• You’d have to gut more than 20% of the existing building.
• The layout doesn’t match your vision, making remodeling too expensive.

Expert Tip:

A barndominium plan designer can help determine whether renovation or new construction is the better option based on your budget and goals. 

Are Barndominium Kits Worth It?

Barndominium kits simplify the building process, but they’re not always the best value.

✅ Why Choose a Kit?

• Pre-packaged materials: Ensures you have everything you need.
• Easier for DIYers: Speeds up construction and removes guesswork.
• Bulk pricing: Kits often cost less per square foot than buying materials individually.

🚧 Potential Downsides:

• Limited customization: Kits follow pre-set designs, which may not fit your vision.
• Unused materials: Some kits include extras you may not need.
• Not always cheaper: If your design is unique, buying materials separately may be more cost-effective.

💰 Cost Breakdown:

• Basic kits (shell only) start under $10,000, but you’ll still need to buy insulation, interior walls, and finishes.
• Midrange kits ($50 to $80 per square foot) include exterior doors, windows, and some finishes.
• Premium kits ($100 or more per square foot) may include roofing, plumbing, and electrical components.

Bottom Line:

If you want a simple, cost-effective build with minimal customization, a kit is a great option. If you have a specific design in mind, pricing out individual materials might save you money.

Other Cost Factors to Consider

Can I Build My Own Barndominium?

The short answer is yes. Generally speaking, building your own barndo is no more complex than building a normal wooden home and in some cases, simpler. Most do-it-yourselfers stress over the larger stages of construction, like setting trusses and keeping everything square. Since the shell of a barndo is often erected professionally, many DIYers are happy to spend that money and focus their attention on smaller details.

This method can also prevent costly do-it-yourselfer mistakes common to first time builders, such as violating code requirements and foundation problems.

Do Your Research and Enjoy the Process

If you are interested in building a barndominium you are not alone. As the housing market continues to climb, potential buyers are looking for a way to buy as much space as they can afford. The spartan design of a barndominium is a great way to create space inexpensively without sacrificing comfort or build quality. Especially if you plan to grow your family in the future, a barndominium may provide you with the most options.