Shipping Container Homes - Pros, Cons & Costs

Link to Xindian Construction

By Luke Hunter ,

Rise Writer

Last Updated: Aug 23,

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 square feet. Hundreds of container micro-apartments together can make a huge apartment building.

Table of Contents

1. Pros of Shipping Container Homes
2. Cons of Shipping Container Homes
3. Are Shipping Container Homes Safe?
4. What Is The Standard Size of a Shipping Container Home?
5. How Do You Insulate a Shipping Container Home?
6. Can You Add a Roof to a Shipping Container Home?
7. What States Allow Shipping Container Homes?
8. How Much Are Shipping Container Homes?
9. How Long Does A Shipping Container Home Last?
10. Do Shipping Container Homes Rust?
11. Do Shipping Container Homes Hold Value?

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.

Pros of Shipping Container Homes

Prefab Shipping Container Homes

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.

Ease of Transport and Finding a Site

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.

Shipping Container Homes Have Predictable Costs

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.

Recycled Shipping Container Homes

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.

Cons of Shipping Container Homes

Shipping Container Homes Are Not Always Effective Recycling

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.

Shipping Container Homes Could Have Structural Issues

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.

Are Shipping Container Homes Safe?

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.

What Is The Standard Size of a Shipping Container Home?

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.

How Do You Insulate a Shipping Container Home?

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.

Can You Add a Roof to a Shipping Container Home?

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.

1. Flat roofs are the simplest, fastest, and least expensive to construct but can be more costly to maintain. It's essential to create a slight pitch for the drainage of rainfall.
2. Living roof, also known as a green roof, is a roof with introduced plants and greenery. These roof types are both aesthetically and naturally pleasing and provide natural insulation and cooling.
3. Pitched roofs are roofs that slope downwards and are among the most common roof types found in areas with heavy rainfall and snow. Popular examples of pitched roofs are gables, hip, mansard, gambrel, and skillion.
4. Roof terraces are creative flat spaces built on top of the roof to expand occupiable or usable space. Many roof terraces are used for small outdoor gardens, eating or lounging areas.

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.

What States Allow Shipping Container Homes?

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.

How Much Are Shipping Container Homes?

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:

• Size, layout, design, and the number of containers required
• Welding and Fabrication requirements
• Cleaning cost if the container is used
• Plumbing and electrical
• Siding
• Flooring
• Kitchen and bathroom finishes
• Lofts
• Windows
• Doors
• Insulation
• and more.

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.

How Long Does A Shipping Container Home Last?

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.

Do Shipping Container Homes Rust?

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.

Do Shipping Container Homes Hold Value?

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 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) ( 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: -08-23T12:45:59+

Article by:

Luke Hunter

Written by

Kristen Cramer

May 10,

Fact-checked by

Tom Grupa

Cost to build a container home

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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Custom vs. prefab shipping container home prices

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 &#; $300

• A fully built container home with a finished interior and exterior, including all fixtures and appliances
• Made at a factory and delivered to the home site
• Assembled on site (for homes built from multiple containers)
• Minimal customization options available
• High-end prefab models come with luxury finishes

Custom container house $250 &#; $400+

• Unique, custom design from an architect or design/build firm
• Flexible size and layout options
• Interior finishing options limited only by your budget
• More two-story options than a prefab house

• Most 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).

A two-story shipping container home made by Cargo Homes.

Shipping container home cost calculator & breakdown

Shipping container home cost calculator Factor Average cost* Land $5,000 &#; $18,000 per acre Foundation $3,000 &#; $19,350 Roofing $1,000 &#; $12,000 Door & windows $1,000 &#; $6,000 Insulation $1,000 &#; $8,000 Electrical wiring $1,000 &#; $7,800 Interior framing $1,000 &#; $14,000 Drywall $500 &#; $15,000 Painting $500 &#; $6,900 Flooring $300 &#; $4,600 Plumbing labor $500 &#; $12,000 Shower $300 &#; $9,000 Water heater $300 &#; $3,500 Toilet $100 &#; $750 Septic or sewer $1,500 &#; $5,000 Fixtures (lights, fans, sinks) $600 &#; $6,000 Appliances $500 &#; $5,000 HVAC / Ductless mini-split system $2,000 &#; $10,000 Interior finishing $1,000 &#; $10,000 Solar panels $3,500 &#; $26,500 Permits $500 &#; $2,000 Design plans $100 &#; $2,000 Utilities hookup $4,000 &#; $12,000

*Including materials and labor.

Shipping container cost

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.

If you are looking for more details, kindly visit Z Folding Packing Container House.

Land, permits, and zoning for a container house

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.

• 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.

Shipping container home foundation cost

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.

Container home labor & materials cost

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.

Container house appliances and furnishings

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.

Shipping container house utilities cost

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 house taxes and insurance

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.

Shipping container home prices vs. tiny house

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.

A modern tiny house on wheels

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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.

Container home building FAQs

What is a container 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.

Are shipping container homes worth it?

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 Cons

• Versatile design &#; can stack multiple containers or place them side-by-side
• Durable and corrosion-resistant Weather- and water-resistant
• Cheaper than a traditional home
• Short construction time when purchasing a prefab container home
• Eco-friendly if building with used containers

• Metal exterior conducts heat and cold easily, requiring extra insulation to regulate indoor temperature
• Requires roof reinforcement or a separate roof built above the container
• Narrow living space in each container
• Used containers may have unseen structural issues or toxic chemical residue
• May be difficult to get building permits or comply with zoning restrictions

Which states legally allow shipping container homes?

Though 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.

How long does it take to build a container home?

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.

How long do shipping container homes last?

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.

Do shipping container homes appreciate in value?

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.

Are container homes safe?

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.

Can you finance or mortgage a container home?

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.

Getting estimates from container home builders

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.

Questions to ask

• 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?

If you want to learn more, please visit our website Folding Container House Customized.