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Reading Time: 6 minutesLast Updated on December 10, 2025 by Paul Clayton
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Why Barndominiums Save You More Money
Key Takeaways:
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- Significant Cost Savings: Barndominiums (or “barndos”) offer a highly cost-effective alternative to traditional homes.
- A traditional home can cost over $600,000 to build, while a low-cost barndominium typically costs under $150,000.
- Structure & Materials: Barndominiums are typically steel, metal, or wood barn structures converted into inside living quarters.
- Steel costs between $7 and $25 per square foot and, while more expensive upfront than wood, offers 50+ years of service with minimal maintenance.
- Insulation is cheaper than in conventional homes, costing $2–7 per square foot.
- Wiring and plumbing costs are comparable to those in a conventional home.
- Cost Reduction Strategies: Builders can achieve additional savings through several methods:
- DIY Approach: Going the Do-It-Yourself route, especially with pre-made kits (ranging from $20,000 to $40,000), is the best way to save money.
- Customization: Customizable kits allow builders to cater to style, budget, and space utilization.
- Pre-made blueprints: Using existing floor plans can reduce planning costs.
- Self-Sourcing Materials: Buying materials directly rather than having builders supply them can reduce costs.
- Cheaper Flooring: Choosing options like laminate flooring instead of expensive wood floors.
- The Building Process: The construction of a barndominium is broken down into five main steps:
- Choose a prime location (average land cost is around $12,000 per acre).
- Prepare the building site by leveling the land.
- Obtain permits, final approval, and financing.
- Construct the Barndominium: The exterior shell is framed and completed quickly; the interior customization (plumbing, wiring, painting) is the slower part and requires expert scheduling.
- Move in and enjoy the new space.
- Significant Cost Savings: Barndominiums (or “barndos”) offer a highly cost-effective alternative to traditional homes.
It’s no secret that building a home and preparing to move can be a pretty costly experience. One way to split those costs in half is to choose an alternative housing option to traditional homes; barndominiums are more cost-effective. Barndominiums are relatively inexpensive compared to other homes, but how do they help reduce costs?
Keep reading to find out how and why barn homes might be the key to your dream home on a budget.
What Are Barn Homes?
Before deciding if they’re your best conventional home alternative, let’s go over what exactly barn homes are. They are usually steel, metal, or wood barn structures with converted inside living quarters. Known as barndominiums or barndo, these structures provide a fresh, natural space for all those lucky enough to visit.
Cost of Barndominiums
While their rustic feel and sturdy materials make for a great living space, most people gravitate toward barndominiums for cost savings. Building a traditional home can cost more than $600,000, while a low-cost barndominium typically costs under $150,000. Any home is a significant investment, but why not reduce these costs for a space that’s just as great?
Let’s review some of the barn-building steps and how much it can cost. The first cost element to consider is land price. It’s pricey, its location is crucial, and you’ve got to have it before you can build. While barndominium prices vary by state, the average land cost is around $12,000 per acre.
Another component that can vary in cost is the building materials and laborers used. If you’re building a steel barndominium, expect to pay between $7 and $25 per square foot. Wood is often considered a cheaper alternative, though it can lead to faster wear and tear. Steel costs more upfront but will provide 50+ years of service in the barndo with little to no maintenance.
Other costs for barn-style homes include plumbing, wiring, and insulation. Typically, installing wiring and plumbing costs the same as in a conventional home. However, insulation is a bit cheaper at $2-7 per square foot. Reviewing these costs, it’s clear that an affordable barndominium can help builders create a realistic dream home.
Barndominiums on a Budget
Just because barndominiums are more affordable compared to traditional homes doesn’t mean they’re a quick trip to the dollar store, right? Building a home is a significant investment, so let’s identify additional cost-reduction opportunities. While there are specialized barndominium builders, the best way to save money is to go the DIY route.
There are tons of different cheap barndominium kits to choose from.
Certain stores even have customizable kits, so making the perfect home has never been easier! Customization allows builders to cater to your style, stay within your budget, and make the most of your space. Most kits range from $20,000 to $40,000. Still pretty pricy, but who doesn’t want to customize their barn home?
Aside from DIY kits to make barndominium cheap, there are a few other things you can do to reduce the cost of barndos. Take advantage of what’s already out there and check out some premade blueprints. Perhaps your perfect home layout already exists and is just waiting for you to find it.
Another thing: if you’re not doing it yourself, consider buying your own materials instead of having builders supply them.
Lastly, flooring options can affect the cost of your metal barn homes. While wood floors can offer a beautiful vibe, they aren’t the cheapest option. Consider laminate flooring, which looks like wood but costs much less.
Cheapest Ways to Build a Barndominium
Now that we’ve gone over what steps to take so this project doesn’t break the bank, let’s get into the steps of building barn-style homes. There are three main sections to consider when starting this process. After planning out your build, it’s essential to start with the foundation.
1. Choose a Location
Before you can pour the foundation and select furniture, it’s essential to choose a prime location for your home site. Location can affect certain aspects of the construction process. Also, mind that in some places, you will likely need a permit to build a barndominium.
2. Prepare the Building Site
Once the kit arrives, it’s not time to dive into the building just yet! Once all materials are ready, barndominium builders and homeowners should make any final land modifications. You’ll need an excavator to level the land for a stable, level home foundation.
3. Planning, Permits, and Approval
Now that your plot of land is ready, it’s time to plan out that perfect home. Either browse for existing floor plans or create your affordable barndominium plans. If you’ve got builders helping along the way, they’ll be a part of this process as well.
While executing this step, it’s also a good idea to discuss the timeline with the entire project team. Builders may be able to provide a start date and an estimate of how long each step of the building process will take.
Floor plans and timelines can then be presented to local regulators, and permits can be applied for. In comparison, you have all the barndominium paperwork, so head to the bank to obtain financing. These two steps will ensure you have the funds and permission to continue. This is a great time to check barndominium kit prices before you build.
4. Constructing the Barndominium
Once construction begins, you’ll start to notice your savings. The process moves quickly, and before you know it, your barndo will go from a concrete foundation to a stunning home. After the slab or foundation is poured, the house is framed quickly. Then, the exterior siding gets completed, and that’s it for the shell!
Here’s where the fun part comes in: assembling and customizing the inside of your barn home! You may feel discouraged because this is a slow part of the process, but that’s only because you need expert help. Plumbers, contractors, electricians, and painters must be scheduled in the correct order.
For a cheap barndominium interior, check out deals from local companies or put some of your expertise to work! This part of the process can take up to a few months, so be prepared: unfortunately, barn home kits don’t include plumbing.
5. Move Into Your Barn Home!
Now that all the hard work is complete, all that’s left to do is celebrate the accomplishment. Once the interior of the space is completed, it’s time to move in and enjoy. Bring in furniture and barndominium designs that showcase your personality. Whether you’re bringing a U-Haul from the old house or going on an Ikea shopping spree to furnish the place, everything will feel so fresh and beautiful in your new space.
Final Thoughts
Barndominiums offer a beautiful, rustic, and natural living space at significantly lower cost than conventional home construction.
The cost-saving potential is the main draw, enabling people to achieve their dream home on a tight budget.
Significant savings come from the structure’s design and the strategic use of materials like steel, which offers long-term durability and low maintenance.
The process is further made accessible and affordable through DIY kits and other cost-reduction tactics, such as using existing blueprints and lower-cost interior finishes.
With proper planning, permitting, and a clear timeline, building a barndominium is a realistic and quick path to a new, affordable home. PS. Don’t forget to browse Crow Survival for more content on all things barndominium life.
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