With the cost of real estate these days, people have gotten creative in property ownership. From the soaring popularity of tiny homes to manufactured ones, there are more ways to own a “house” than ever. One unusual and increasingly popular types of homes are shipping containers.
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Yes, shipping containers.
According to HomeGuide, the average cost to build and install a container home is $25,000 to $250,000. While that’s no small chunk of change, it’s significantly less than you’d expect to pay for a traditional house in most parts of the country. Let’s explore the costs associated with shipping container homes so you can decide if one is right for you.
First off, let’s more accurately define a container home. A container home is a house that’s built with one or more shipping containers. Shipping containers are designed to transport cargo across the world on ships, so they’re built to be extremely durable and weather-resistant, making them solid foundations for a home.
Shipping container homes are not the same as manufactured homes. Unlike manufactured houses, shipping container homes must meet traditional building codes. Successfully constructed, a shipping container home may last 25 to 30 years without needing significant maintenance. Of course, that duration is dependent upon how well you treat it and the local climate.
Building a shipping container home is a lot of work, and depending on the features you’d like, it might not be that much more affordable than building a traditional home. Buying a pre-built shipping container home won’t give you the same custom experience, but it’ll probably save you a lot of money.
The average pre-built shipping container home costs between $20,000 and $50,000 from a company that specializes in these types of home. Obviously, that’s significantly less expensive than a traditional home or building a shipping container home from scratch.
That said, there are fewer investment benefits of a shipping container home. The market likely isn’t going to rise dramatically for these types of homes any time soon, so there’s less high-end investment opportunity. You trade affordability for a stagnant investment.
As we mentioned at the start, HomeGuide estimates that a shipping container home costs anywhere from $25,000 to $250,000 to build, and will take anywhere from three to six months to complete. The wide net is because there are many, many factors that impact how much a shipping container home will cost.
Here’s a look at some of the primary factors that impact the cost of building a shipping container home.
While you can certainly build a home with a single shipping container, you don’t have to settle for a studio apartment. Shipping containers are 8 feet wide by 8.5 feet high and are available in 10-foot, 20-foot, and 40-foot lengths. Containers cost $1,200 to $10,000.
The average cost to build a shipping container breaks down to about $150 to $350 per square foot, depending on the features you incorporate. You can build a shipping container home that’s greater than 2,000 square feet, just expect to spend more the larger the home gets.
For reference, the average cost to build a house is a little under $400,000, so even if you build a larger shipping container home, you’re probably doing it for cheaper than it would cost to build a new traditional house.
There is a shipping container home industry, which means you can buy prefabricated containers or entire container homes for a set price. Prefab container homes generally cost $120 to $300 per square foot. Customer-designed homes are more on the $250 to $400 per square foot range.
Generally, prefabricated containers are single-story and single-container. Custom homes can be configured to include multiple stories and be laid out any way you like.
Prefab containers are popular as extra structures on the same property to be used as a home office, in-law suite, or rental unit. In most states, a single-container unit qualifies as an accessory dwelling unit (ADU).
If you already own the land where you want your shipping container house to sit, that’s great! You’ll save some money. Otherwise, expect to spend anywhere from $5,000 to $18,000 per acre of land.
Because shipping container homes are typically placed on a permanent foundation, you also need to ensure that local regulations permit you to put a shipping container home on your land. That will entail land surveys and work permits to prep the land for construction.
Land surveys cost anywhere from $200 to $1,200 while land clearing, permits for new construction cost $500 to $2,000, and excavation will cost between $2,500 and $9,000. If you have to grade the land, expect to pay a little more.
In many cities, you can’t build shipping container homes, so make sure to check local zoning regulations before starting your project.
Sure, a shipping container isn’t exactly silly putty, but there’s a still a lot you can do design-wise with a shipping container home, especially if you’re building it fully custom. Hiring an architect will cost 8% to 15% of the construction cost, but will help you create a home you’re truly proud of and that meets all of your specific needs.
Building the actual home involves many expenses that will have a significant impact on the final cost. Expect those costs to include:
Shipping container homes tend to be smaller than traditional ones, so you may opt for smaller appliances to maximize the space in your home. You can save some money by getting a smaller range, refrigerator, laundry machine, and other typical appliances.
Likewise, multi-purpose furniture is very popular in container homes, like futons, fold-down tables, furniture built into walls, and more. This is another area where you can save money by investing in utility over style or design.
Finally, you’ll have to connect your shipping container home to water and electrical services. Installing a new water main costs $32 to $53 per linear foot, but you may have to pay as much as $3,000 for a new water meter.
If you’re connecting to the sewer line, that costs $40 to $180 per linear foot. Otherwise, a septic tank system costs $3,500 to $8,500 to install.
Connecting to the local electrical grid will cost $250 to $1,500 depending on the distance to the nearest utility pole. If you need to run new power lines to the home, it could cost another $2,000 to $5,000 or more. Many shipping container homes opt for solar power due to its more affordable nature and the tax credits you can receive for installing panels. If you’re going to pay to get on the electrical grid anyway, it makes more sense to pay for solar panels, get a tax credit, and save on future utility bills.
→ Read more about the value of solar panels
Just like traditional homes, you must pay property taxes and have homeowners insurance for a shipping container home. Homeowners insurance tends to cost from $50 to $150 per month, but you’ll likely have to shop a bit to find an insurance company that offers a suitable option.
There are many benefits of building or buying a shipping container home rather than buying a traditional home or tiny house. They’re not the right option for everybody but there are several key benefits to consider.
Buying a shipping container home may cost just a little more than a year’s rent on an apartment, and you’re likely getting a larger living space. You’d still need to buy the land to put it on, of course, but putting a container on a plot of land is a much more accessible path to homeownership than buying a traditional home.
They also tend to be more affordable than even some tiny homes, especially if you purchase prefabricated containers.
Learn more about the hidden costs of buying a home
As we’ve mentioned before, shipping containers are built to endure the absolute worst weather the planet has to offer. They’re often stacked on top of one another without damage to the container or the contents within. These things are tough. The typical container home can last for 25 to 30 years with regular maintenance and may withstand storms and other severe weather even better than a house.
Local zoning regulations permitting, you can put a shipping container home basically anywhere. So, if you really love an area, all you have to do is buy the land and you can drop a container home on it. Since these homes are built to ship, you can get a container home delivered practically anywhere with relative ease and put it down on the exact spot you want.
Because of their standardized nature, you can build one far faster than you could build a traditional home. Sometimes, you can design and build one in as little as ten weeks.
If you’re concerned about waste and the environment, shipping container homes are a great option. By buying a shipping container, you’re recycling it rather than letting it simply go to waste in a junkyard somewhere. Plus, they’re extremely flexible, allowing you to add energy-efficient features and green building materials like spray foam insulation, green roofing, solar panels, or Energy Star appliances.
By Luke Hunter
Rise Writer
Jul 16, 2017
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Container homes are exactly what they sound like; homes made from the steel shipping containers that you see carrying goods everywhere on trains, trucks, and ships. From these giant Lego blocks, people are building homes of all shapes and sizes.
Shipping containers are generally available in 10ft, 20ft, and 40ft. The smallest shipping container can provide about 100 square feet of floor space for a shipping container home. Eight larger containers together can make a two-story house at about 1400 square feet. Hundreds of container micro-apartments together can make a huge apartment building.
Shipping Container Home, Costa Rica. Photo Credit: Benjamin Garcia Saxe
Why are shipping containers being used to make homes, studios, cabins, and offices? Well, with about 14 million ‘out-of-service’ containers in the world, there are lots of them available. And playing with giant blocks has a definite appeal!
Besides trendiness, interest in container homes is also part of a wider interest in saving money with prefabricated and modular homes. Many potential homeowners are looking for lower construction and maintenance costs. There is also a perception that container homes are contributing to recycling.
Container Home. Photo Credit: Patrick Bradley Architects
Could a container home be a good choice for you? Here are some pros and cons to consider.
Many shipping container homes are available as prefabricated modular homes, making construction time shorter. Some companies advertise delivery within 10 weeks! Most of the building code inspections are done at the factory, which makes things simpler and quicker. Or if you are designing a custom home or building a do-it-yourself project, the container gives you a fun prebuilt structure to work with.
A worldwide system exists for moving containers around. Once they reach your site, they are relatively simple to set in place on a prepared foundation.
Most of the work is completed on a factory floor for a fixed price. Delivery to the site, site preparation, foundation, assembly and utility connections are the only variable costs. That said, container homes are not always less expensive. Estimates vary, and some put the savings at 5-10%, depending on what you’re comparing against.
The environmental appeal of a container home is the idea that you are re-using a leftover product of the shipping industry to make a home. This can be a good thing, but as we will see, it’s not always true or the best thing.
Some of the advantages, like short construction time and predictable pricing, are the same for all prefabricated and modular homes, not just those made with shipping containers. But container homes benefit uniquely from the worldwide infrastructure built to move shipping containers. Even container home skeptics admit they can be useful where local building expertise is lacking or for emergency shelters that can be moved easily. In these scenarios, the versatility of container transport is a huge advantage.
Catskills Container Home. Photo Credit: Porter Fox
Container homes are often marketed as being environmentally friendly because they are said to be made from used containers, thus conserving metal resources. There are lots of old shipping containers out there, no longer in circulation, and repurposing them into homes has a strong appeal. But is a container home really the best use of a container, from a sustainability perspective? Many would disagree.
Most factory-built container homes are built from ‘one-use’ containers that have only had a single trip. These containers tend to be in good shape, without dents or rust, so they are nice for building with, instead of containers that have gone ‘out-of-service’ and may be damaged from years of use. Taking a box with lots of shipping life out of service after a single use isn’t effective recycling. And there is way more steel in a container than you need to build a house - if recycled as steel, it could make enough steel studs for 14 framed houses the same size.
A shipping container is very strong at the corners, but the roof is not that strong, so typically you need to build another roof over it, especially where there will be snow. Also, the corrugated steel walls are essential to the strength of the structure. This means anywhere you cut out a large window, or door opening requires new reinforcement. And when they are stacked together to make larger homes, welded (expensive) reinforcement is needed wherever two containers join at a spot that is not a corner. Any later renovations require significant engineering and welding.
It’s often not possible to know what has been shipped in a used container – anything from harmless consumer goods to hazardous industrial materials – or what the container has been through. The paints and finishes used on containers are industrial and intended for shipping across the ocean, not residential homes, so that they could contain lead and toxic pesticides.
The size of shipping containers is quite limiting and can quickly be consumed by plumbing, HVAC, insulation, and other systems. A container was designed to fit on a train, which means it’s narrow, and ordinary furniture doesn’t fit right. A standard container is also only 8ft wide and 8 ft 6 in high, which doesn’t leave much headroom after insulation and wiring are installed.
The narrow shape of a shipping container doesn’t lend itself to insulating the exterior very well. To avoid using up interior space, a relatively thin layer of insulation with a high R-value per inch, such as polyurethane spray foam, is often used. Although spray foam is an effective and airtight insulator, the blowing agents used in many brands of spray foam are powerful greenhouse gases.
While shipping containers are reinforced at the corners, the existing roof may lack structural integrity. Those looking for container homes capable of support weight, such as weather, should consider if building a roof is right for them. A roof can also provide aesthetic and architectural flair that is common amongst homes in North America. While there are multiple styles of roofs that can be used for a shipping container home, flat roofs, pitched roofs, roof terraces, and living roofs are the most common.
Making a poor insulation decision can have a negative impact on climate change than other kinds of insulation. To construct a well-insulated wall, it would be better to build outward for more wall thickness and use a more environmentally sustainable type of insulation. But then what use is a heavy, corrugated steel exterior if it’s buried in insulation?
Buddina Beach Box. Photo Credit: OGE architects
As container homes continue to rise in popularity, so do requests for homeowners to build homes with them. Repurposed shipping containers are even popping up as markets, hotels, fairs, and mobile shops at local events. Even with the increasing popularity, your ability to build a home with shipping containers relies heavily on zoning regulations and building codes set forth by the local government. It's essential to do your research, understand zoning and building codes, and speak with the proper housing authorities if anything is unclear.
Suburban and rural areas tend to be more open to shipping container homes; however, some states are visibly more open to alternative living. Texas, California, Tennessee, Louisiana, Missouri, Oregon, and Alaska are among the more progressive states that have, to some level, opened their doors to shipping container homes. Texas already plays host to many container homes. Even though California is known for its red tape, it has been open to container homes and hybrid container homes. Louisana and Tennessee experience some of the most lenient and forward-thinking zoning regulations in the United States. As alternative living options continue to grow, it's only a matter of time before more states in the country begin to allow shipping container homes in designated areas.
So what will a shipping container home cost? Smaller, more basic container homes can range between $10,000 to $35,000. Large homes built with multiple shipping containers and amenities can range in price from $100,000 to $175,000. Shipping container homes, in some cases, can cost half as much per square foot than traditional stick building. However, it isn't easy to compare apples to apples, and there are many factors to consider.
So what can increase the cost? While land costs and climate requirements are significant considerations, it can also depend on many factors, including:
There is a report of a simple shipping container home self-built by an engineer in Canada for only $20,000. But a pre-manufactured container home has a price tag that looks more like a regular home.
Shipping container homes should last at least 25 years but will last much longer if they are well maintained or if you use siding to protect the exterior. Rust is the single most common issue that can reduce the lifespan of a shipping container home. It's important to inspect your shipping container home and look for rust spots. Any problematic areas should be treated and repaired to reduce the chance of rust spreading.
Since shipping container homes are made out of metal, there is the possibility that they may rust. Some shipping containers are initially manufactured with alloys, a process commonly referred to as weathering steel or corten steel, which helps to form a surface level of rust that mitigates further corrosion. The climate where the container is located factors into whether a shipping container home will rust as wet and dry climates affect shipping containers differently.
A well-maintained shipping container home can retain its resale value much like a traditional home. They're relatively easy to resell since they can be loaded onto a truck and shipped almost anywhere. Before purchasing, you may want to inquire as to whether the shipping container home was manufactured for your climate and, if not, inquire as to the modifications you may need to make so that it's appropriate for its intended location.
Image courtesy of Honomobo
Here is one example. Honomobo is a builder of pre-designed, factory-built container homes based in Edmonton, Canada. They create homes using one to eight containers with high-quality finishes. Their largest model, HO8, is a two-story home with just over 1400 square feet of floor area.
NOTES: All prices are approximate, based on available data. The land is not included in this comparison and is assumed to be the same for both. *Posted price from Honomobo. **Estimated $220 per square foot construction cost in Canada, not including land or foundation. ***Estimated $1.30 per km per container for shipping, considering Edmonton (Canada) to Winnipeg (Canada) (1300 km).
Image courtesy of Honomobo.
You might love to have a container home because you like the idea, the look, the chance to play with blocks in a DIY design, or the quick delivery time for a manufactured model. But don’t assume it will cost less or that it’s necessarily more environmentally sustainable.
Disclaimer: This article does not constitute a product endorsement however Rise does reserve the right to recommend relevant products based on the articles content to provide a more comprehensive experience for the reader.
Last Modified: 2023-08-23T12:45:59+0000
Article by:
Luke Hunter
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