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? ›

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.

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? ›

Getting a home loan for a barndominium can be tricky since many lenders are unfamiliar with these types of structures. However, it is far from impossible. You just need to be able to fulfill your lender's requirements as well as the stipulations set out by your particular loan program.

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 most expensive part of a barndominium? ›

Steel framing, popular in barndominium construction for its durability and resistance to pests, can be more expensive than traditional wood framing. Framing costs can range from $20 to $50 per square foot, making it one of the most significant portions of the construction budget.

How hard is it to sell a barndominium? ›

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 is the life expectancy 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.

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.

Why are barndominiums so cheap? ›

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.

Do barndominiums have equity? ›

Understanding Equity in Barndominiums

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.

Is it worth it to build a barndominium? ›

So what exactly should you know before purchasing your very own Barndo? Pros of barndominiums include a cheaper cost, fully customizable space, and lower maintenance. They're also highly durable with lots of extra room and are a more eco-friendly housing option.

Are barndominiums hard to sell? ›

Families that build barndominiums tend to customize their layouts for their own needs. That's not a bad thing for them, but it could make it more difficult to sell in the long run. It also makes it extremely difficult to find comparable properties to determine if it's a good investment.

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.

Are barndominiums actually cheaper? ›

In some cases, barndominiums are cheaper to build than a house. 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.

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