The current trend for building barndominiums started in the mid-2000s, and really got into the swing among millennials when it was featured in the well-known HGTV show, Fixer Upper. More recently, it was dubbed the hottest building trend for 2021. People just love the idea of building a unique barn-aesthetic home that’s away from the hustle and bustle of the city, and is much closer to nature and the countryside. But with this trend in full swing, more and more people are wondering, “Are barndominiums a good investment?” Let’s take a closer look into the question, are barndominiums a good investment!
Should You Invest in a barndominium?
Before deciding if you want to build a barndominium and if it is a good investment, you need to have your goal in mind. Why are you investing in a barndominium? Is it to live in, to have more land, to rent out, or to sell at the end of the project.
Your goal determines if the barndominium is a good investment.
Homeowner- If you plan to live in your home and have more land, a barndominium is a great investment. barndominiums are cheaper to build and are usually built in more rural areas, so you have. plenty of room for everything you want to do.
Rent- If you plan to build and then rent out your barndominium, it is good because costs are low to build, leaving you with a cheaper mortgage payment, making it a beneficial rental.
Sell- If you plan to build a barndominium as an investment to sell, you need to make sure to keep the costs low to make the time and effort worth it. If you can’t flip it for a big enough profit it may be a bad quick investment.
Is a Barndominium cheaper to build?
Of course, the two factors that determine the return on your investment in a barndominium are the initial building costs, compared to the amount that you will be able to sell it for at some point in the future.
So, let’s address the first of these two factors. At face value, you’d assume that barndominiums are cheaper to build because there are fewer walls to be put up. Moreover, barndominiums are not built with traditional construction materials but with solid wood timbers, steel, and metal components. And this too affects the building costs.
Data shows that prefabricated barndominiums often cost an impressively small 50 percent of the cost of a building of the same size made of traditional construction materials.
Therefore, we can safely conclude that a barndominium is a far more affordable investment than a more traditional building. As to whether it’s a worthwhile investment requires a little more digging, which we’ll be getting onto very shortly.
We address the question of barndominiums being cheaper to build a little more deeply in another of our articles, entitled “Is a Barndominium cheaper to build?” which is available on this link.
What’s the average cost of a Barndominium?
The average cost for building a barndominium in 2020 was between $95 and $125 per square foot…
And that’s for a full turnkey build, which also includes having many important features already built in, such as granite countertops, nice fancy roll-up glass doors, and your Andersen windows, amongst many other welcome amenities.
This average price considers quite a bit. There’s the basic barndominium kit, the construction materials, and the labor cost. But on top of that, you will also have to pay out for any electrical work and plumbing.
The total average cost for a 2000-square-foot barndominium comes in at around $220,000 to $260,000 to build. That’s at the higher end with all the modern conveniences. But remember, that also entails the architect’s plans and hiring a general contractor.
You can really save money by going for the DIY kit route rather than by hiring an architect and a general contractor. In stark contrast, buying a barndominium shell comes in at between $20 to $40 per square foot. By my rough estimate, you’d pay between $40,000 to $80,000 for the same 2000-square-foot barndominium.
There is, however, considerable price variation. You can get barndominiums that are low priced, mid priced, and relatively high priced. And of course, each of these can also vary in size, significantly impacting the cost.
Do Barndominiums increase in value?
We are very pleased to report that since the trend for building barndominiums began as we said in the mid 2000s, they have seemed to retain their value and sell quite competitively.
Barndominiums are still very popular and their popularity is still growing, and there is no evidence that their popularity is in any way declining.
We believe that you will certainly make a profit from any barndominium that you choose to invest in, and that you will certainly gain more from the selling of the property than you spent building it or getting it ready for sale.
There are, of course, several factors that can affect the sale price of your barndominium. And you should certainly take these things into consideration if a return on your investment is your main aim in this endeavor.
These factors include such things as:
- The convenience of the location, transport routes and such like
- Any included land that comes with the property, perhaps for keeping animals or growing vegetables
- The exterior aesthetic, whether it is pleasing to the eye
- The interior layout, whether it is well designed and has modern facilities
- The financing, which can be more difficult to arrange with barndominiums
Conclusion – Are Barndominiums A Good Investment?
We, then, are happy to conclude that barndominiums are in fact a good investment. They are comparatively cheaper to build compared to a more traditional building, particularly if you go down the DIY route.
Interest in the buying of barndominiums is not expected to decline any time soon, and we can quite safely predict that you’ll be sure to make a profit on it. But do take into consideration all of the factors that we have talked about. Factors that will directly affect the building cost, and factors that will affect the resale cost when the time comes.
If you are ready to start building the barndo of your dreams, check out our barndominium floor plans to help you create the barndominium of your dreams or use a barndominium design software program to help you plan out your space for your new home. When in the planning stages, be sure you also check out the barndominium financing and insurance options that are available. For more helpful tips, visit our FAQ barndominium section to get answers to all your barndo questions.