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Are Barndominiums a Good Investment?

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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