Over the last decade, barndominiums have moved from being a niche housing trend to a mainstream option for homeowners across the United States. Originally popular in rural areas, these modern barn-style structures are now competing directly with traditional stick-built homes.
One of the most common questions homeowners ask is: How does the cost per square foot of a barndominium compare with a traditional home? The answer isn’t as simple as a flat number—it involves materials, labor, customization, financing, and long-term value.
This guide breaks down every detail you need to know about barndominium cost per square foot vs traditional homes, giving you an informed perspective before making your investment.
Understanding Barndominiums
A barndominium is a hybrid property that blends the structural design of a barn with the functionality of a residential home. Built primarily using steel framing, these homes are durable, highly customizable, and faster to build than most traditional houses.
- Common Features: open floor plans, tall ceilings, loft areas, and energy-efficient metal roofing.
- Construction Options: prefabricated barndominium kits or custom builds designed to your exact specifications.
- Typical Locations: rural housing developments, suburban lots with more land, and areas with flexible zoning regulations.
Barndominiums are especially appealing for people who want a large, versatile living space that combines modern comfort with durability.
Cost Per Square Foot: Barndominium vs Traditional Homes
Average Barndominium Cost per Square Foot
The typical barndominium cost per square foot ranges between $70 and $120, depending on the finish level, location, and whether you use a DIY approach or hire professional contractors. A basic barndominium shell with minimal finishing can be even cheaper, while luxury interiors push the price higher.
Average Traditional Home Cost per Square Foot
By contrast, a traditional home usually costs between $120 and $250+ per square foot, depending on the region, architectural design, and material choices. Urban builds or custom-designed homes can exceed this range.
👉 In simple terms: Barndominiums tend to be 30%–50% cheaper per square foot compared to traditional houses, especially when built in rural areas with affordable land.
Factors Influencing Barndominium Costs
- Material Costs
- Steel framing and metal roofing are more cost-effective and durable than wood-based structures.
- Prefabricated kits reduce waste and shorten construction timelines.
- Construction Timeline
- Barndominiums are faster to build, often completed in a few months, which means lower labor costs compared to a year-long traditional build.
- Energy Efficiency
- Insulation choices, HVAC integration, and proper sealing can make barndominiums highly energy-efficient. However, large open spaces may lead to heating and cooling challenges if not designed properly.
- Customization
- Open floor plans keep costs low, but custom finishes, high-end kitchens, and luxury bathrooms can increase the price per square foot significantly.
Factors Influencing Traditional Home Costs
- Foundation and Framing
- Traditional homes require concrete foundations and wood framing, which increase both material and labor costs.
- Material Choices
- Brick, siding, shingles, and premium finishes often add to the expense.
- Architectural Complexity
- Multi-story layouts, complex roofing, and unique designs require skilled labor, which raises the overall cost.
- Construction Timeline
- A typical traditional home takes 9–12 months or longer to complete, leading to higher ongoing labor expenses.
Long-Term Value Considerations
Energy Efficiency & Maintenance
- Barndominiums: Steel framing is resistant to pests, mold, and fire, reducing long-term maintenance. Proper insulation and HVAC upgrades make them energy efficient.
- Traditional Homes: Typically offer better natural insulation through layered wall systems but require more upkeep (roof replacement, wood treatments, etc.).
Property Value & Resale Potential
- Barndominiums: Growing in popularity, especially in Texas and rural states, but may face lower appraisal values in urban areas where traditional homes dominate.
- Traditional Homes: More universally accepted, making them easier to sell at competitive prices.
Financing and Insurance Differences
- Barndominiums: Mortgage lenders and insurers sometimes classify them as “non-traditional structures,” which can complicate financing. Specialized lenders and construction loans may be required. Insurance premiums vary depending on local building codes and risk assessments.
- Traditional Homes: Well-established financing and insurance options with more predictable underwriting.
👉 If financing ease is your priority, a traditional home may have the advantage.
Pros and Cons Comparison
Barndominiums
✅ Lower cost per square foot
✅ Faster construction timeline
✅ Durable steel construction
✅ Highly customizable
❌ Financing and insurance challenges
❌ Limited resale value in some markets
Traditional Homes
✅ Higher resale value and stronger market demand
✅ Easier mortgage approval and insurance coverage
✅ Greater architectural variety
❌ Higher upfront costs
❌ Longer construction time and higher labor expenses
Case Studies & Real-World Examples
- Texas Example: A 2,000 sq. ft. barndominium at $100 per square foot costs around $200,000, while a traditional home of the same size averages $300,000–$400,000.
- Customization Impact: Adding luxury finishes such as granite countertops, hardwood flooring, and smart home systems can bring a barndominium’s price close to that of a traditional home.
- Regional Variations: In rural states, barndominiums save significantly on labor and material costs. In urban areas, the savings gap narrows due to higher land and zoning expenses.
Conclusion
When comparing barndominium cost per square foot vs traditional homes, the short answer is clear: barndominiums are generally cheaper to build upfront. Their lower material costs, shorter construction timelines, and durable steel structures make them an attractive option for many homeowners.
However, long-term considerations such as financing, insurance, and resale value still favor traditional homes in most markets. The right choice depends on your personal goals:
- If you want affordability, speed, and customization → go with a barndominium.
- If you prioritize resale value, financing, and long-term market stability → a traditional home may be better.
FAQ
1. Are barndominiums always cheaper than traditional homes?
Not always. While the average cost per square foot is lower, custom finishes can bring costs closer to traditional homes.
2. What is the average cost per square foot for a barndominium in 2025?
Between $70 and $120, depending on design and location.
3. Do barndominiums hold their value like traditional homes?
They are gaining popularity but still face lower resale values in some markets.
4. Can you get a mortgage for a barndominium?
Yes, but financing can be more complex than for traditional homes. Specialized lenders may be required.
5. Which option is more energy efficient long term?
Both can be energy efficient with proper design, but barndominiums require high-quality insulation due to large open layouts.