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.
Written by
Kristen Cramer
May 10,
Fact-checked by
Tom Grupa
Shipping container homes cost $25,000 to $80,000 for a single-container model or $80,000 to $250,000+ for a multi-container house. The average cost to build a container home is $150 to $350 per square foot, depending on the size and features. Shipping container prices are $1,200 to $10,000 for the container alone.
Shipping container home cost Size >Square feet Containers Average cost Home office 80 &#; 100 1 $10,000 &#; $20,000 Studio 160 1 $15,000 &#; $25,000 1 bed 1 bath 320 1 &#; 2 $25,000 &#; $82,000 2 bed 1 bath 640 2 &#; 3 $80,000 &#; $130,000 2 bed 2 bath 960 3 &#; 4 $100,000 &#; $180,000 3 bed 2 bath 4 $150,000 &#; $220,000+ 3 bed 2.5 bath 5 $180,000 &#; $250,000+ 4 bed 2.5 bath 6 $190,000 &#; $300,000+ 5 bed 3 bath 8 $200,000 &#; $400,000+Shipping containers are 8' wide by 8.5' high and come in three standard lengths: 10', 20', and 40'.
Compared to a shipping container home, the cost to build a house is $178,000 to $416,000 on average for a traditional home.
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A prefab container house costs $120 to $300 per square foot, while a custom-designed container house costs $250 to $400+ per square foot. Total costs depend on the home&#;s size, features, number of shipping containers, and number of stories.
Shipping container home cost per square foot - ChartCost to build a prefab vs. custom container home Type Cost per square foot Considerations Prefab container house $150 &#; $300Most prefab container homes are single-story, while custom container homes can be configured with multiple stories and in a variety of layouts.
Many builders offer single-container structures for use as a separate home office, guest house, in-law suite, or rental unit placed on the same property as an existing traditional home.
In most states, a single-container residential unit placed on the same property as an existing home qualifies as an accessory dwelling unit (ADU).
*Including materials and labor.
A shipping container costs $1,700 to $8,200 on average, depending on the size, condition, and features. A single container can be used to build a tiny home, or multiple containers can be stacked on top of each other or placed side-by-side to create a larger home.
Shipping containers come in 10', 20', and 40' lengths. A standard container is 8' wide x 8'6" high with interior dimensions of 7'8" wide x 7'10" high before adding insulation, framing, or drywall. A high cube container is 9'6" high and provides more interior space for higher ceilings or ductwork.
Shipping container cost by size Size (L x W x H) Square feet Average cost* 10' x 8' x 8.5' 80 $1,700 &#; $3,000 20' x 8' x 8.5' 160 $2,000 &#; $4,000 20' x 8' x 9.5' (high cube) 160 $2,200 &#; $4,500 40' x 8' x 8.5' 320 $2,700 &#; $8,000 40' x 8' x 9.5' (high cube) 320 $3,000 &#; $8,200*For a one-trip shipping container with delivery
Before purchasing a used shipping container to build a house, confirm there is no rust or structural damage and the container was not used to transport toxic substances.
Most shipping container homes are placed on a permanent foundation, requiring land in an area with compatible zoning regulations. Land costs $5,000 to $18,000 per acre on average, depending on the location. Land surveys and site prep involve additional expenses:
A land survey costs $200 to $1,200 on average, depending on the survey type, property size, and terrain.
Land clearing costs $1,500 to $6,700 per acre to remove trees, stumps, brush, and rocks.
Excavation costs $1,000 to $2,500 to dig a foundation for a tiny home.
Grading land costs $500 to $1,000 to level a small area or contour the slope for proper drainage.
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A building permit costs $500 to $2,000 for new construction.
Many cities do not allow tiny shipping container homes. Check local zoning regulations and building codes before investing in a container home.
A shipping container home foundation costs $3,000 to $19,350, depending on the type and size. A concrete slab foundation is the most common and cheapest at $5.75 to $13.50 per square foot, while pier footings and crawlspace foundations are priced at the higher end of the range.
Designing, planning, and constructing a shipping container home involves professional labor from a variety of industries:
A shipping container home with a second story and rooftop deck.Keep these considerations in mind when buying appliances and furniture for a tiny shipping container home:
Interior designer &#; Interior designers charge $50 to $200 per hour or $500 to $1,500 to design a single-container house interior, not including furnishings or appliances. Look for an interior designer with extensive experience designing small, multi-use spaces.
Appliances &#; Many manufacturers offer smaller versions of appliances that are ideal for tiny homes, though the smaller size often comes at a premium price.
Furniture &#; Consider multi-purpose furniture that doubles as storage space, a convertible couch that can double as a bed for guests, and fold-down tables or desks to maximize space usage.
Connecting a shipping container house to local utilities involves additional costs:
Water and sewer
Installing a new water main costs $32 to $53 per linear foot, not including the new meter. Some cities charge as much as $2,000 to $3,000+ for the meter itself.
A septic tank system costs $3,500 to $8,500 installed.
A sewer line costs $40 to $180 per linear foot installed, depending on the pipe width and the distance from the home to the street. A house without a septic system typically must be connected to the city's sewer line.
Electrical
Connecting a house to the local electrical grid costs
$250 to $1,500+, depending on the distance to the nearest utility pole, and typically requires installing a new utility company meter. Running new lines to a house on rural property may cost $2,000 to $5,000+.
Solar panels cost $10,600 to $26,500 for a 6 kW to 12 kW system with installation after subtracting the 30% federal tax credit.
Shipping container houses are subject to local property taxes, which vary by location.
Homeowners insurance for a shipping container house costs $50 to $150 per month, depending on the home&#;s size and features. To qualify for standard homeowners insurance, the home must meet all local building codes. Some insurance companies only allow mobile home policies for shipping container homes.
A tiny house costs $30,000 to $70,000+ on average, depending on if it&#;s a prefab model or custom-built house. A standard tiny house can be constructed in different sizes and dimensions with a variety of building materials, while a shipping container home is limited by the container&#;s steel exterior.
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The International Residential Code (IRC) considers any house that is 400 square feet or less a tiny home. A house built from a single shipping container is 160 to 320 square feet and qualifies as a tiny home.
A container home is a house built with one or more shipping containers forming the home&#;s structure. Because shipping containers are designed to transport cargo around the world, they are made of heavy-duty steel and are durable and weather-resistant.
Shipping container homes are considered modular homes but differ from manufactured homes. A shipping container house must meet traditional building codes, while a manufactured house may follow the U.S. Department of Housing Development (HUD) code instead.
Container homes built with recycled shipping containers use less construction materials, making them an eco-friendly, sustainable housing option.
A shipping container home is a cost-effective alternative to a traditional house and may be worth it for those seeking an eco-friendly building option. However, heating and air-conditioning a steel container home is costly, and the thick insulation required reduces the amount of available living space.
Pros and cons of a shipping container home Pros ConsThough most states allow shipping container homes built on a permanent foundation, the regulations and zoning restrictions vary in each city and state and are typically strictest for tiny container homes. Check your local zoning laws and building codes before investing in a shipping container house.
Rural areas typically have fewer zoning restrictions than urban or suburban areas.
Building a container home takes 3 to 6 months on average, depending on the size, style, and features. A prefab shipping container home typically takes less time to build than a custom-designed home.
A shipping container home lasts 25 to 30 years on average without requiring major maintenance, depending on the local climate and weather. Regular maintenance, inspections, and painting prevent rust and extend the home&#;s lifespan.
Shipping container homes typically hold their resale value or appreciate in value if well-maintained. Reselling a single-container home that is not permanently attached to a foundation is often easy because it can be loaded onto a truck and transported to a new location.
Shipping container homes are popular on vacation rental sites like Airbnb and Vrbo, providing an alternative method to recoup your investment.
Container homes are as safe as traditional homes in extreme weather, tornadoes, and earthquakes, and are highly wind-resistant. However, a used shipping container may have transported toxic chemicals or pesticides that can cause health issues. Test the container for contaminants before purchasing it.
You can finance a container home if it meets all local building codes and zoning regulations. However, financing options depend on the home&#;s size, features, and location:
A large, multi-container home typically qualifies for a standard mortgage because its size is comparable to a traditionally built home.
Most mortgage lenders will not finance a shipping container tiny home. Tiny home financing options include builder loans, mobile home loans, or unsecured personal bank loans.
Some lenders treat container homes of all sizes as mobile homes, limiting the available mortgage options.
A shipping container house built as an accessory dwelling unit (ADU) on property shared with an existing home may be eligible for mortgage financing through Freddie Mac.
Before hiring a container home builder near you or purchasing a prefab container home, be sure to:
Search online for container home styles and models that appeal to you.
Look for builders specializing in container homes.
Read their reviews on HomeGuide and Google.
Browse the builder's online portfolio and tour their house models in person.
Ask for references from past customers. Contact each reference and ask what they are happy and unhappy with about their home, what it was like working with the builder, how the team handled problems, and whether they were communicative.
Discuss your space needs and lifestyle with the builder.
Get a complete set of architectural drawings and specifications.
Get a detailed contract, schedule, materials list, and warranty in writing before the project begins.
Develop a payment schedule tied to progress. Don't make the final payment until the home has passed all inspections and you are completely satisfied.
How long have you been in business?
How many container homes have you built?
Are you licensed, bonded, and insured?
Do you have a portfolio of homes I can review?
Do you have any pre-built models I can tour in person?
Can you provide references I can contact?
What is and is not included in the estimate?
Are there any finishes, fixtures, or appliances I'll need to purchase separately?
How long will it take to build my home?
Will you handle all the permits and inspections?
How much do you charge to deliver the finished home to my location?
Do you offer financing?
Do you offer a warranty, and if so, what does it cover?
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