There’s a new trend in affordable housing. Creative individuals looking for a unique place to stay are repurposing shipping containers into metal houses. Some people are turning these containers into tiny homes, while other buyers are stacking and connecting multiple containers to create large houses.
There are many reasons why people are building shipping container homes. They offer a unique style and bold architecture that appeals to young Americans. They are more affordable than traditional homes and they offer more flexibility in where they are located.
How much does one of these shipping containers cost? And what does the process look like to turn a used shipping container into a home? Learn about the cost to build a container home and the different options that buyers face.
How much does it cost to build a container home?
Shipping container homes range in size and cost. The average cost to build a shipping container home is around $10,000 to $35,000, while larger homes can cost up to $175,000. The cost of building a container home will also increase based on your desired amenities and materials used. The more features you want, the more your container home will cost.
Evaluate the Land Cost
While the cost to build a container home is low if you plan to keep the structure small, you still need to consider where you place it. Unlike a tiny home, which can reside on a trailer and move to different parks and campsites, a container home will remain in place. This means you need to own the land that you place the container on.
According to the USDA, the average cost for an acre of farmland in 2020 was $3,160. However, this number increases significantly once you start to look at land parcels in popular metro areas. You may discover that the cost to buy the land takes up a large portion of your overall home building budget.
Keep in mind that there are also different types of land to buy. Raw land lacks amenities like roads, sewer systems, and connections to the electrical grid. Improved land has these amenities and is ready to build on. You will also need to make sure your parcel is zoned for residential living and not commercial structures or farmland.
Lay the Foundation
Once you have your land, you can start to lay the foundation for the shipping container. A trench foundation is one of the more affordable options, where the concrete is poured into a shallow hole in the ground. A slab foundation is used when the ground is soft and the shipping container needs added reinforcement.
There is another foundation option for shipping containers. A pier foundation uses a series of cylindrical columns to support the structure that is placed on it. This elevates the home a few feet off the ground while the columns prevent the shipping container from sinking into the dirt.
Your foundation options will depend on your home design plans and the type of soil on your land. However, you can expect to spend about $5,000 on this process.
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Find Your Shipping Container
The next step is to find your exact container. You have two options: a new container or a used one. A new container is considered a “one-trip” container because it makes only one trip to your property. A used container may have been in service for a few months up to a few years.
You can secure a used container for around $2,000 on average. Some people report spending closer to $1,500 while others spent more. New container costs can range up to $8,000. The average size of a shipping container is 20 feet by 8 feet.
Some builders stack multiple containers against each other. You may be able to buy two to six containers at once if you plan to create a larger structure with your units.
Are shipping container homes environmentally friendly?
Just because you buy a shipping container home doesn’t mean you are making a positive environmental impact. When you buy a container that is used, you are repurposing the container and reducing waste. If you buy it new, the unit was created just for your home and likely has the same environmental impact as a tiny home.
Install Your Insulation
With your shipping container placed firmly on your foundation, you can start to work on the structure to make it livable. One of the biggest myths of living in a container home is that you don’t need to insulate it. However, the insulation will help you control the climate in your home no matter where you live.
Without insulation, your container home will feel like an icebox in the winter and a sauna in the summer. This will also drive up your heating and cooling costs. You can invest in spray, foam, or blanket insulation to protect your interior. These range in price from $0.50 to $2 per square foot.
Add Your Amenities
Once everything is in place, you can move forward with the amenities in your home. The amenities are where the cost to build a container home start to vary. While you can estimate the cost of land in your area and the going rate of a shipping container, there are dozens of amenities to include. A few popular features of most shipping container homes include:
- HVAC systems
- Electricity
- Plumbing (including sinks, showers, and bathtubs)
- Roofing and rooftop features
- Interior doors and walls
- Shelving and closets
- Flooring
- Windows
With these features, your shipping container is just like any other home. You can opt for an affordable ductless air conditioning unit or install a full-size HVAC system. You can install laminate flooring that pops in or consider more expensive options. You can set your budget based on your home design goals.
Consider Buying a Pre-Made Container Home
There is good news for fans of container homes who don’t know how to turn a shipping container into a fully functioning house. There are companies that specialize in buying used shipping containers and reselling them to customers as completed homes. You can look at their designs online and find a container home that matches your size and budget.
These container homes start around $30,000. They include amenities like kitchens, bedroom spaces, and rooftop patios. Many companies offer several models to choose from based on your design preferences.
While buying pre-made is an easy way to get a move-in-ready container home, you will still need to budget for interior design upgrades (like paint colors) and furniture.
Should you buy a used shipping container home?
One way to avoid the cost to build a container home is to buy an existing one. These shipping containers are meant to last up to 25 years. However, they can last longer with the right care. Look for a home without rust, with added siding, and a built-on roof for added insulation and protection.
Make Sure You Factor In All the Costs
Before you look at container homes, you need to know whether you can actually afford to own one. Mortgage payments are generally higher than rent in most states. And even when the prices are close, there are other costs associated with owning your home instead of renting.
Your property taxes will be added to your monthly mortgage payment. And if you put down less than 20% for a down payment, your lender will probably require you to pay for private mortgage insurance (PMI) as well.
You’ll also have to pay some costs that you might not have had to pay while renting: utilities, cable, garbage pickup, and any necessary repairs.
Make sure you can comfortably afford not just your mortgage but also any additional expenses before buying your first home.
If you’ve run the numbers and decided that yes, you can afford homeownership, your next step is to meet with a mortgage lender. You can discuss the different types of mortgages and decide which would be best for you. You’ll also want to be pre-approved for a mortgage before you begin house-hunting.
To get pre-approved for a mortgage, you’ll have to share your financial and employment information with the lender. They’ll require documentation such as tax forms, pay stubs, and more. Once they review and verify your information, they’ll determine whether to approve you for a mortgage. If they do, they’ll let you know your mortgage options and terms.
The lender will also issue a pre-approval letter. You can show this to sellers when you’re looking at homes, to let them know that you’re able to secure financing.
Find a Realtor to Help With Your Shipping Container Dreams
Above all, remember that your Realtor should be there to aid in your home buying process, whether you want a shipping container or a more traditional home. Helping you avoid the wrong time to buy, the wrong location or the wrong house for your budget can all go a long, long way in making sure that you’re happy with the end result. Beyond that, realtors aren’t all the same, and you will need to find one that gels with your interest as a home buyer before choosing to go the length of the field with them.
UpNest, whichis owned by parent companyRealtor.com, uses a proprietary agent matching system that considers closed listings, location of listing, and other factors to provide the customer with 3-5 individual proposals.
The proposal includes commission information, marketing techniques, a Q&A about the agents, local trends, reviews, and more. Once agents start using UpNest’s platform, the matching system evaluates their performance with UpNest, including conversion rates and response time.
UpNest is a no-cost service for home sellers and buyers to find the best real estate agents locally. The UpNest platform allows you to compare multiple agents in your area so you can compare reviews, commission rates, previous sales, and more.
Our network agents have been carefully vetted and often offer competitive, lower than averagecommission rates to UpNest customers. There is no obligation to sign up with one of our network Realtors, but when you can potentially save thousands on commission – why wouldn’t you? If you’re ready to get started, just enter your zipcode below!
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Is it cheaper to build a container home?
Shipping container houses are significantly cheaper to build than regular homes. They are very resource efficient and can be made to look like regular houses. You will need a building permit to build or install a container house, and you’ll likely need a site plan in order to obtain the building permit.
Do container homes hold value?
According to some estimates, container homes maintain a very high resale value (100 percent and up)and being able to load them on a truck and deliver them anywhere makes them very attractive.
