Building a Barndominium? Read This

If you’ve spent much time around rural property listings over the last few years, you’ve probably noticed that barndominiums and shouses have become more common with each passing year. I’ve watched that shift happen in real time, and I understand why. I’ve built two barndominiums from scratch, we live in one as our primary residence, and I’ve also sold a number of them for clients across western Illinois. I’ve seen how well they can work, and I’ve also seen where people get caught off guard. If you’re considering building one, there are a few things worth thinking through before you ever break ground.

“I’ve built barndominiums from the ground up, lived in one as my primary residence, and sold them for clients. I’ve seen what works — and where people get caught off guard.”

For many rural landowners, the appeal is obvious. A barndominium allows you to combine living space, storage, and shop space into one efficient footprint. The style of construction lends itself to large, clear-span interiors and flexible floor plans that can be modified over time as needs change. Whether you’re a farmer, a business owner, or someone who simply values space and flexibility, that kind of layout can be hard to beat. In many cases, these buildings go up faster than a traditional home, offer nearly unlimited customization, and allow you to build around your lifestyle instead of forcing your lifestyle into a predefined floor plan.

One of the most common assumptions I hear, though, is that a barndominium is always cheaper than a conventional house. Sometimes that’s true, and sometimes it isn’t. The building shell itself can be very cost effective, especially with post-frame or steel construction. Where the numbers start to climb is on the interior. High-end finishes, spray foam insulation, polished concrete floors, custom cabinetry, and large windows all add up quickly. It’s very possible to build a barndominium that rivals or even exceeds the cost of a traditional home. The advantage isn’t always the final price. The real advantage is control. You get to decide where to spend, where to save, and what truly matters to you.

“The shell may be cost-effective, but finishes, insulation, and layout decisions are where budgets are won or lost.”

Another area where experience matters is zoning, financing, and appraisals. These aren’t the exciting parts of the process, but they can make or break a project. Some counties have clear guidelines on how barndominiums are classified, while others are less familiar with them. Some lenders are comfortable financing them, and others are hesitant. Appraisals can be challenging if comparable sales are limited in your area. I’ve seen projects slow down or fall apart entirely because these conversations didn’t happen early enough. Before you finalize a design, it’s worth talking with your county zoning office, a lender who understands rural construction, and a local real estate professional who has actually sold these types of properties.

Layout planning also deserves careful thought. One of the greatest strengths of a barndominium is the freedom it offers, but that freedom requires intention. You need to be honest about whether you’re building a home with a shop or a shop with living quarters. Noise, dust, and separation between spaces matter more than people often realize. In our own build, we made a conscious decision to design the living space so it truly felt like a home rather than an afterthought attached to a workspace. That choice has paid off every single day.

It’s also important to remember that some of the biggest costs don’t come from the building itself. On rural properties, utilities and site preparation can vary widely. Septic systems, wells, driveways, electrical runs, and grading are all highly dependent on location and soil conditions. These are the line items that surprise people most often. Planning conservatively in this area can save a lot of stress as the project moves forward.

Even if you believe this will be your forever home, resale value still matters. Well-designed barndominiums can and do sell well when they feel residential inside, offer good natural light, and strike a balance between living space and shop space. I’ve sold barndominiums that performed extremely well in the market. I’ve also seen others struggle when they were built too narrowly for a specific use. Designing with flexibility in mind usually pays off in the long run.

“Even if this is your forever home, resale still matters. Flexible, well-designed barndominiums consistently perform better over time.”

Barndominiums and shouses are not a passing trend. They are a practical solution for modern rural living when they’re planned carefully and built with intention. If you’re considering one, take the time to think through how you actually live, how the property will function day to day, and who you may one day sell it to. Those answers should guide every decision that follows.

I have built them from the ground up, and helped others buy and sell them. If you’re exploring whether a barndominium or shouse makes sense for your land and your goals, I’m always happy to talk it through.

— Chase Burns