Barndominiums—steel, barn-style homes—are gaining popularity as more Americans search for affordable paths to homeownership.
Purchasing a kit can significantly cut construction, foundation, and labor costs, with some structures assembled in as little as 10 days. Typical kits come with exterior walls, a roof, framed openings for windows and doors, siding, and steel columns.
Barndominium kits typically range from $50 to $100 per square foot and exclude interior materials such as insulation. All in, building a barndominium from a kit can cost between $150,000 and $350,000, according to industry insiders. In contrast, the median home price currently sits at $403,450.
Barndominium builder Justin Nowak, founder of Texas Complete Barndo Solutions, tells Realtor.com®, "A barndominium kit is like going to buy a very extravagant set of shelves from Ikea. It comes with all the parts you need and usually comes with the tools you need, but it needs to be built. What most people do when they buy a kit is end up hiring out the labor."
Nowak says that a kit technically comes with everything you need for building a barndominium. "If you're a DIYer or know a lot about building, they're a great option," he explains, "and we do sell custom kits if you want to do the labor on your own."
But, barndominiums are not the only alternative gaining traction. Granny flats—also known as ADUs, granny pods, or tiny homes—are increasingly popular for people who want to build a stand-alone unit in their backyard for a family member.
Paul Dashevsky, co-CEO of Maxable, a leader in ADU planning, building, and development, tells Realtor.com that the cost of a custom-built ADU typically ranges between $80,000 and $400,000.
Do your homework
If you're using a kit for a barndominium or a granny flat, Whitney Hill, the founder of SnapADU—San Diego's largest accessory dwelling unit construction company—says it's important to do your research.
"If you're attempting to use a granny flat kit or to DIY the build, it's important to research the local regulations upfront," she says. "Will the kit comply with the building codes? Can you build the size unit you are envisioning? From there, there are hundreds of factors to assess to determine the true cost of such a project."
Hill says that includes everything from utility tie-ins, panel upgrades, water/sewer lateral sizing, drainage requirements, fire requirements, and building separation rules.
"Bringing in a professional who understands those requirements upfront can help assemble a true all-in budget, even if you do plan to handle parts of the construction yourself," she says. "The worst is starting a project only to realize it's infeasible."
One family's barndominium journey
Jennifer Miller Boatright of Webb City, MO, has built two barndominiums with her husband in the last six years.
"It was definitely a DIY project for us to tackle," she tells Realtor.com. "We liked the affordability of it, and how we could customize our own floor plan."
The couple ultimately hired a local builder and secured a construction loan from a local bank.
Boatright notes that constructing each barndominium took approximately one year.
"We have three acres," she says. "We built one, lived in it for two years, then constructed another. We've now sold the first one, and are living in the second one. And we plan to build a third!"
She says they appreciate the minimalist design and energy efficiency.
"There's so many cool features inside of it when you build them," she explains, "and you realize how much space you have in a barn."
Boatright says she loves how there's enough room for her two youngest boys to run free.
"They're just wild—and it's like, 'your kids must live in a barn." Well, technically, they do," she says with a laugh.
Extended family living
"Multi-generational living is one of the fastest-rising trends in the barndominium space—about 1 in 5 Americans now live in a multi-generational household, and barndominiums are especially well-suited for it," Mike Bernard, director of operations at BarndominiumPlans.com, tells Realtor.com. "Their open floor plans and steel-frame construction make it easy to design dual master suites, in-law suites, or separate wings that give families togetherness without sacrificing privacy."
Hill says over half of her ADU clients build for multi-generational living.
"Some have the use of the ADU evolve over time, so it may start out as a rental but the long term plan is for grandma to move in," she says.
That's the case for Boatright.
She says they built an apartment above the three-car garage that they will rent out to cover the mortgage for now.
"But our 17-year-old daughter might stay there when she goes to college, and my dad jokes about moving in at some point," she says. "I don't know what that will look like in the future, but we have the option for multigenerational living with our rental, which gives peace of mind."
Jeremy Nova, co-founder of Studio Home—a company that sells prefabricated homes in building kits that can fit on a homeowner's property—tells Realtor.com, "One of our customers in Sonoma, CA, created a detached ADU they call 'Grandpa’s Cottage,' so her father could live closer to the family. The 14-by-18 Studio Home ADU includes a full kitchen, bedroom, living area, and ample storage. Despite having a relatively small lot, the project has worked beautifully."
Rebecca Hidalgo Rains, CEO of Integrity All Stars Realty in Phoenix, tells Realtor.com, "An ADU for Grandma is becoming part of the American dream."
