What to know about container homes — and how much they cost

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.

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.

What is a container home?

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.

How much is a pre-built shipping container home?

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.

How much does a shipping container home cost to build?

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.

Number and size of containers

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.

Custom vs. prefabricated

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).

Land, permits, and zoning

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.

Design

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.

Basic construction

Building the actual home involves many expenses that will have a significant impact on the final cost. Expect those costs to include:

• Roofing: $3 to $6 per square foot
• Insulation: $0.80 to $4.50 per square foot
• Electrical: $1.56 to $3.75 per square foot, plus electrician fees of $40 to $100 per hour
• Plumbing: $4 to $6 per square foot, plus plumber fees of $45 to $150 per hour
• Water heater: $300 to $1,800, or $800 to $3,500 for a tankless water heater
• Flooring: $6 to $10 per square foot
• Doors and windows: $230 to $820 each for interior doors, $500 to $1,900 for exterior doors, plus $400 to $650 per window
• Framing: $18 to $24 per linear foot, depending on ceiling height
• Drywall: $1.50 to $3.50 per square foot
• Painting: $20 to $50 per hour, or $1 to $4 per square foot
• Heating and cooling: A ductless mini-split AC is ideal for shipping container homes and costs $2,000 to $10,000 to install

Appliances and fixtures

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.

Utilities

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

Taxes and insurance

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.

Should I get a shipping container home?

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.

Affordability

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

Durability

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.

Versatility

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.

Eco-friendliness

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.