Do Barndominiums Actually Cost Less Than Traditional Houses?

Is It Really Cheaper to Build a Barndominium?

"I built my barndominium for $100 per square foot." That’s a common claim on social media. Given that traditional stick-built homes often start at around $200 per square foot, it’s no surprise these videos attract thousands of viewers. The perceived cost savings of barndominiums are one of the main reasons this housing trend took off.

But the big question remains: Is it actually cheaper to build a barndominium than a traditional house?

To save you time, the answer is both yes and no.

There’s no straightforward answer because several factors influence the final cost. To break it down, let’s examine four key components: foundation, kits (shell), total square footage, and labor.

1. Foundation

Barndominiums are typically built on a slab-on-grade foundation, eliminating the additional costs of basement walls and flooring. That same slab can also serve as the finished flooring, immediately saving tens of thousands of dollars compared to a traditional stick-built home, which usually requires additional expenses for basements and flooring.

However, if you don’t like the look of plain concrete floors, you have options: staining, polishing, or stamping. Stamped concrete can mimic stone, wood, or tile, adding character but also increasing costs.

Wood floors? Guess again! This is actualy stamped concrete.

Many barndominium owners in colder climates opt for radiant floor heating, which can be efficient enough to heat the entire home without requiring a traditional HVAC system. However, while radiant heating is energy-efficient long-term, it comes with a higher upfront installation cost compared to standard ductwork.

The Role of Shape and Site Preparation

Another overlooked factor is the shape of the structure. Traditional houses tend to follow more complex designs, with multiple angles, rooflines, and varying layouts. Barndominiums, on the other hand, are typically simple rectangular structures—with 40x60 being one of the most popular dimensions. This simplicity reduces both foundation and roofing costs compared to a traditional home.

Additionally, site preparation and excavation costs can significantly impact foundation expenses. Slabs require level ground, so if your property has uneven terrain, the excavation work required to make it suitable could offset any initial savings. If your land is hilly, a traditional home with a basement or crawl space may actually be the more cost-effective choice.

Excavating into the hill to the left of this barndominium added thousands to the cost.

Key Takeaway

While a slab foundation offers the most cost savings, factors like stamped concrete, radiant heating, or extensive excavation can quickly eat into those savings. And here’s the catch: traditional homes can also be built on slabs. It’s just that historically, we associate traditional homes with basements or crawl spaces.

2. Kits (Shell)

This is where barndominiums have a clear advantage.

A barndominium kit is essentially a prefabricated shell, like a LEGO set for your home’s exterior. Since the structure is pre-cut and measured off-site, assembly is faster and requires less labor, reducing overall costs. Additionally, less material is wasted since everything arrives pre-measured and ready for installation.

While prefabricated kits exist for traditional homes, they haven’t gained the same popularity as barndominium kits. Companies like Hansen Pole Buildings (post-frame wood kits) and Midwest Erecting and Fabricating (red-iron steel kits) offer DIY-friendly options, allowing homeowners to assemble the shell themselves—saving thousands in labor costs.

However, when using steel, material costs increase, particularly with red iron steel. While steel construction is more expensive upfront, its long-term durability and low maintenance costs often make up for the initial investment. (Read our separate article comparing different construction materials.)

Picture Source: BuildMax. This is an example of a barndominium steel kit.

3. Labor

Now, let’s talk about the biggest cost factor: labor.

Many of the ultra-low cost barndominiums showcased on social media, where people claim they built them for $100 per square foot, were built by homeowners themselves. They either acted as their own general contractor (GC) or completed much of the labor themselves.

The truth is, labor savings are not unique to barndominiums. If you’re skilled, resourceful, and willing to put in the work, you can cut costs on any type of home, barndominium or traditional.

Real-World Labor Cost Savings Example

Let’s look at a recently built barndominium in my area:

• Turnkey Cost: $394,000

• Size: 2,668 sq. ft. (finished: 2,044 sq. ft.; unfinished: 624 sq. ft.)

• Cost Per Sq. Ft.: $147

• No radiant heating or stamped concrete

• Custom-built (not a kit)

• Built using a proprietary post-frame method to reduce costs

• General Contractor (GC) fee: $65,000 (~16% of total cost)

DIY and General Contractor Savings

If the homeowners had acted as their own GC, they could have saved $65,000, bringing the cost down to $329,000 ($123 per sq. ft.).

Going full DIY (handling all construction themselves) could have saved an additional $98,700, bringing the final cost to $230,300 ($86 per sq. ft.).

(Note: These numbers assume an average labor cost of 30% of total expenses. Labor typically ranges from 20% to 50% in various trades. Also, this particular builder has a cost-efficient method, while others in the area are averaging $175 per sq. ft..)

4. Total Cost Per Square Foot

A common misconception about barndominium cost per square foot is how it’s calculated.

Many people highlight their 5,000 sq. ft. barndominium cost, but often, 2,500 of that is garage or shop space. Since garage space is significantly cheaper to build than living space, it artificially lowers the average cost per square foot.

For an apples-to-apples comparison, if you only consider the finished living space, barndominiums and traditional houses are similar in cost, unless you use a post-frame kit.

Source: Facebook. Here's a great example of a barndominium where nearly half of the total square footage is shop/garage.

The Bottom Line: Are Barndominiums Cheaper?

In most cases, no, they are not significantly cheaper when you break down the details.

Here’s why:

• Labor – Are you doing it yourself or acting as your own GC? This is where most cost savings come from, but this also applies to traditional houses.

• Foundation & Kits – Barndominiums save on foundation and kits due to simpler designs and less material waste, but costs increase with add-ons like radiant heating or excavation.

• Total Cost Per Sq. Ft. – A barndominium and a traditional home with the same layout, materials, and finishes will cost about the same. However, barndominiums often include large, low-cost shop/garage spaces, making the overall cost seem lower.

Final Thoughts: Should You Build a Barndominium?

Ask yourself:

• Do you need a large shop/garage space?

• Are you comfortable doing some of the work yourself to save money?

• Is your property suitable for a slab foundation?

• Do you plan to use a kit and if so, what material?

If you check most of these boxes, you could save compared to a conventional home. But if not, a traditional house may offer better value.