What Is a Barndominium? The Basics Every Buyer Should Know

Looking for an affordable, customizable home that breaks away from traditional housing? A barndominium might be your answer.

They’re gaining popularity among homeowners seeking flexible, budget-friendly alternatives to conventional homes.

But are they right for you? This blog breaks down everything you need to know, what sets barndominiums apart, how much they cost, their key features, and whether they match your housing goals and lifestyle.

What Is a Barndominium and What Is It Made Of?

A barndominium is a metal building that serves as both a home and workspace. It combines “barn” and “condominium” into one word.

What’s It Made Of?

Steel Frame: Steel posts and beams form the main structure and support the roof.
Metal Exterior: Steel panels cover the walls and roof. They resist weather damage and last 40-60 years.
Concrete Foundation: A thick concrete slab acts as both the foundation and floor.
Insulation: Spray foam insulation sits between the metal exterior and interior walls to control temperature and reduce energy costs.
Interior Walls: Standard drywall creates rooms inside. Some owners leave the metal frame exposed for an industrial look.
Standard Home Features: Windows, doors, plumbing, and electrical systems install just like in traditional homes.

What Makes a Barndominium Different From a Traditional House

A barndominium combines barn-style construction with modern living spaces, offering a unique alternative to conventional homes.

Traditional homes use wood framing and shingle roofs, while barndominiums feature steel frames and metal exteriors, making them faster to build.

Barndominiums cost $130-$180 per square foot compared to $200-$300 for traditional homes.

Traditional houses have load-bearing walls, while barndominiums offer open spaces for easy reconfiguration.

Metal exteriors resist rot and termites better, but need extra insulation for comfort.

Resale value favors traditional homes, though barndominiums are gaining rural popularity.

How Much Does It Cost to Build a Barndominium?

Building a barndominium costs significantly less than traditional homes, but prices vary based on several factors.

Average costs range from $130 to $180 per square foot for a complete build.

A 2,000-square-foot barndominium typically costs $260,000-$360,000, while traditional homes run $400,000-$600,000 for the same size.

Cost Breakdown	Price Range	Details
Shell-Only Kit	$20-$40/sq ft	Metal frame, exterior walls, roof only
DIY Interior Finish	$50-$100/sq ft	Insulation, plumbing, electrical, and interior walls
Turnkey Build	$130-$200/sq ft	Complete build from foundation to finished interiors
Permit Fees	$500-$2,000	Varies by location
Utility Connections	$3,000-$10,000	Water, electric, septic/sewer
HVAC System	$5,000-$15,000	Heating and cooling installation
Insulation	$5,000-$12,000	Depends on climate needs

Costs shown are estimates only and may vary by location, materials, labor, and design. Land, financing, and unforeseen expenses are not included. Consult local builders for accurate pricing.

Factors That Affect Barndominium Cost

A barndominium’s price depends on size, location, materials, customization level, and whether you hire contractors or build it yourself.

Size of the Building

Larger buildings have a lower cost per sq ft but raise the total cost.
Extra rooms, lofts, or complex floor plans increase costs.

Materials

Metal frame & siding: usually cheaper and faster.
Wood framing: higher material and labor costs.
Insulation quality (critical for energy efficiency) significantly impacts costs.

Interior Finishes

Flooring choice: concrete vs hardwood vs tile
Kitchen and bathroom fixtures
Custom cabinetry or built-ins

Utilities & Site Preparation

Foundation: slab on grade is the most common
Utility connections (water, electric, septic)
Land grading and excavation

Location & Labor

Local labor rates vary by region.
Permitting costs and building code requirements differ by city/state.

Pros and Cons of a Barndominium

Barndominiums offer unique advantages and drawbacks compared to traditional homes.

Pros

Lower costs at $130-$180 per square foot compared to traditional homes.
Quick construction with metal frames is going up in weeks instead of months.
Open layouts provide flexible spaces you can customize easily.
Durability from metal exteriors that resist fire, rot, termites, and severe weather.
Low maintenance since metal siding doesn’t need frequent painting or repairs.
Energy-efficient metal roofs reflect heat when properly insulated.

Cons

Insulation challenges require extra effort to maintain comfortable temperatures.
Noise issues as metal amplifies rain and hail sounds.
Financing difficulties since some lenders view them as non-traditional.
Resale concerns with a smaller buyer pool than conventional homes.
Zoning restrictions in some areas prohibit metal buildings.
Condensation problems without proper ventilation.

Where Are Barndominiums Most Popular?

Texas is the barndominium capital. The trend started here because of cheap land, open space, and relaxed building codes.

Barndominiums are common throughout the Southern and Midwestern United States.

States like Oklahoma, Arkansas, Missouri, Tennessee, Alabama, Louisiana, Kansas, and Mississippi have embraced this trend due to their rural landscapes and strong farming communities.

These states have cheap rural land and simple building codes. Metal structures handle hot weather and storms well.

Farm communities value homes combined with workspace for equipment and livestock.

The trend is spreading to Georgia, North Carolina, and Florida as more people learn about the benefits.

Financing and Insurance for a Barndominium

Getting financing and insurance for a barndominium is tougher than for traditional homes, but it is possible.

Financing Options

Construction Loans: These release money in stages as you build, then convert to mortgages after completion.
Mortgages: Some banks offer mortgages for finished barndominiums, but many won’t due to resale concerns.
Cash or Personal Loans: Many owners pay cash since costs are lower. Personal loans have higher interest rates.
Getting Approved: Use rural banks or farm credit unions familiar with barndominiums. Show detailed plans proving it’s residential, not just a workshop.

Insurance

Coverage Challenges: Many insurers won’t cover barndominiums or classify them as commercial buildings.
Higher Costs: Premiums cost more than traditional home insurance.
Best Option: Find insurers specializing in rural or metal buildings. Coverage should include structure, belongings, and liability.

Shop multiple lenders and insurers before building to get the best rates.

Is It Possible to Build a Barndominium Yourself?

Building a barndominium yourself is possible and can save significant money, but it requires skills, time, and careful planning.

DIY construction involves purchasing a shell kit for $20-$40 per square foot, including the metal frame, exterior walls, and roof. You’ll need basic tools, heavy lifting equipment, and an understanding of building codes.

Interior finishing requires specific skills for insulation, electrical, plumbing, and HVAC.

Some tasks legally require licensed professionals with permits.

Time commitment takes 6-12 months or longer, but cost savings reach 30-50%, potentially saving $50,000-$100,000. Mistakes can be expensive to fix.

DIY works best with construction knowledge and available time. Hiring professionals for complex systems while handling simpler tasks balances savings with quality.