What is a barndominium? Essential information for homebuyers.

Key takeaways

• Barndominiums are homes built from metal or steel barn frames, offering open layouts and modern finishes. 
• Buyers should expect lower construction costs, flexible designs and durable structures, but may face challenges with financing, insurance and zoning. 
• Costs, features and resale value depend on location, build quality and local demand, so buyers should research thoroughly before purchasing. 

Crossing a barn with a condominium sounds like an unusual combination. But the building style blends residential property, rural appeal, flexible design and, in many cases, lower construction costs.

As a residence, barndominiums are one of the fastest-growing house plan styles, according to House Plan Zone, a Hattiesburg, Mississippi,design company. These homes are designed to accommodate those who need flexible space for living, garages, hobby workshops and RV bays.

They can be built faster and cheaper than traditional homes because their simple framing and rooflines reduce costs. They often feature open-concept layouts, vaulted great rooms and rustic charm with modern amenities.

"Barndos" — as they also are called — got a boost from HGTV’s Chip and Joanna Gaines, who renovated a barndominium on a show in 2016, according to AgTrust Farm Credit, a lender in Fort Worth, Texas.

They tend to be more popular in rural and semi-rural areas, which have more space and fewer building restrictions, according to Land.com.

Barndominiums must meet certain criteria to qualify as a residential building, according to BuildMax, a design firm based in Vine Grove, Kentucky:

• Must have permanent foundation: The barndominium should be anchored to the ground and designed for residential use.
• Must have residential amenities: They should feature the basic amenities of a residential dwelling, including kitchen, bedroom, bathroom and living areas.
• Must comply with rules pertaining to housing: They should meet criteria under local building codes and zoning requirements for residential property.
• Must be designed for single-family occupancy: It should be built without shared walls or multiple residences.

The main structure is usually a steel or metal shell, which allows for wide, unobstructed interior spaces. Many owners choose custom finishes, such as polished concrete floors, wood accents and large kitchens. Common amenities include:

• Garages 
• Workshops 
• Covered porches 

A metal frame makes these homes more resistant than wood-framed houses to pests and weather damage. Buyers can also add energy-efficient upgrades, like spray foam insulation and modern heating, cooling and air-conditioning systems.Pros:

• Lower construction costs compared to traditional homes in many areas 
• Durable metal frame resists pests, fire and severe weather 
• Flexible floor plans and easy customization 
• Faster build times for shell and interior 

Cons:

• Financing can be more difficult — some lenders require stricter standards 
• Insurance may cost more or require special coverage for metal structures 
• Resale value can depend on local demand and zoning 
• Limited availability in urban and suburban areas 

The heating, ventilation and air-conditioning system for a barndominium aren't fundamentally different from a single-family home. However, its heating and cooling are unique.

A barndominium typically is larger on the inside compared to a single-family home, according to Barndominium Ideas, an online resource. This can increase your monthly utility bill. To address this, some barndominiums use radiant floor heating systems on the inside and heat reflectors on the outside.

The total cost of a barndominium depends on the price of land, the shell or kit and interior finishing. Shell kits for a basic barndominium can start around $30 to $50 per square foot, while fully finished builds may range from $175 to $200 per square foot, according to Delmarva Buildings in Wyoming, Delaware.

Land costs add to the total and depend heavily on location. Buyers should also budget for site preparation, utilities and closing costs. Getting multiple bids from builders and comparing material packages helps keep the project on budget.

Most buyers use a construction-to-permanent loan, which covers the build phase and converts to a standard mortgage once the home is complete. Some lenders offer traditional mortgages for barndominiums, but qualification standards may be stricter. Lenders may require a higher down payment, a property value estimate or proof that the property meets local building codes. For more on how mortgages work, visit our mortgage basics guide.

Check with your local building and zoning officials before digging the first shovel of dirt. Some areas restrict metal buildings or require specific setbacks, lot sizes or architectural standards. Building permits are required in most areas, and the process can vary from quick to time-consuming.

Buyers should also ask about homeowner association restrictions. Not all permit barndominiums. To understand how zoning laws work, check out Homes.com’s guide to zoning laws.

Maintaining a barndominium requires work. Metal siding and roofs should be inspected regularly for rust, leaks and loose fasteners. Cleaning gutters and checking for water intrusion helps prevent long-term damage. Owners should schedule a home inspection before purchase and periodically after moving in.

Insurance for barndominiums can be more expensive or require special coverage, since some providers treat metal homes differently than traditional houses. It's important to compare policies and ask about coverage for metal structures, outbuildings and custom features.

Construction, cost and flexibility set barndominiums apart from traditional and modular homes. The main frame is metal, which allows for open layouts and faster builds. Traditional homes use wood or brick, while modular homes are factory-built and assembled on site.

Sources: Barndo Guru, Angi

Buyers should start by researching local listings and connecting with agents who have experience with barndominiums. Review financing options and check lender requirements before making an offer. It's also smart to visit properties in person and ask about zoning, permits and insurance. To see available properties, visit Homes.com’s guide on homes for sale.

Yes, but some lenders have stricter requirements than for traditional homes. It helps to work with lenders experienced in barndominium financing.

Barndominiums can be energy efficient if built with proper insulation and modern materials. Many owners choose energy-saving upgrades to lower utility costs.

Barndominium values depend on location, build quality and local demand. In some areas, they appreciate like traditional homes, but resale can be slower in rural markets.

You need homeowners’ insurance, but some insurers may require additional coverage for metal structures. Shop around for policies that fit your property type.

Not always. Local zoning laws and building codes may restrict where you can build a barndominium, especially in urban or suburban areas.

More on this topic:

• Buying a home in 10 steps
• How to finance a home in 8 steps
• Mortgage preapproval is your first step to homeownership