What are the Cheapest Homes to Build?

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With home prices on the rise, many people are looking for creative housing options and wondering, what are the cheapest homes to build?

While tiny homes and mobile homes are relatively less expensive housing options; however, if you’re looking for the cheapest home to build, prefabricated homes, ranch homes, and barndominiums are affordable options. Additionally, 3D homes have stirred up the market as an alternate option for building a home.

New Technology Impacts Housing Costs

We are in a time with some of the most innovative technology that has the potential to interrupt how traditional homes are built. As a real estate agent for over 20 years, it is incredible to watch home building evolve.

We are in a time when every dollar counts, and building a house can be very expensive. 

However, there are options for inexpensive home building.

Read on for some of the cheapest styles of homes that you can build, with a mix of the traditional ways along with new innovations. 

The Cost of Land

If you’re considering building a house, it’s essential to start with the land that you’re planning to purchase. Depending on your location, the land you buy can be a significant cost even before you start building the home.

Furthermore, water, sewer, and other utilities like gas and water are essential to consider when purchasing land. If the land does not have access to any of these utilities it will drive up the cost of building a home and may push you beyond your available budget.

Cheapest Homes to Build: Traditional Homes

Sticking to a budget does not mean that you have to compromise quality or style. Traditional homes such as prefabricated homes, ranch style, and A-frames offer affordability and design. In addition, barndominiums offer a variety of options to create your perfect home.

Each of these has its own unique features. Let’s explore these more to discover which style might be the best for your cheap home build.

Prefabricated Homes

Prefabricated homes have been fairly prevalent since the early 1900’s and became extremely popular when Sears began selling their Modern Home Kit (1908-1940). Today, prefabricated homes are built in a factory and then transported in large pieces to the building site for assembly.

With the technology of today, prefabricated homes come in a variety of shapes, sizes, and budgets, providing an option for just about everyone. Many of these homes also provide customizable options without breaking the bank.

Some examples of prefabricated homes are modular homes, home kits, manufactured homes, and panelized homes. Each of these will need a solid foundation to be built on, and the cost can range from $50,000 – $300,000 for a prefabricated home.

The Home Kit

Interestingly, the home kit has been rising in popularity as people look for the cheapest home to build. Stores like Home Depot, Lowes, and Amazon sell frame kits for small structures like Additional Dwelling Units (ADU’s).

Many people are looking to help increase affordable living while offsetting some of their own mortgage. Adding one of these kits, if zoning allows it, is a great way to provide someone with a new home and save a lot per square foot. 

Ranch Homes

For those looking for a traditional build, ranch-style homes are a very common style, and they are a great way to build a home while keeping the pricing low. Ranch-style homes are single-story homes with an open floor plan.

Typically, ranch homes are more budget-friendly compared to building upwards, making them a great option for a cheap home to build.

Furthermore, some people think about the long term and want to ensure that they can live in their home during retirement.

Depending on the area, these can range from $201,000 to $310,000, not including land costs. Ranch styles are great for this, and you can even use a manufactured home to build this style. 

Barndominiums

A personal favorite home style is the barndominium. The barndominium is a barn-like structure that’s converted or built to have living spaces. While these homes are most often barns that are converted into homes, a barndominium can be a new build.

Given the widespread housing shortage, potential homeowners are looking for creative housing solutions that suit their needs and lifestyles. This multipurpose living space usually has steel framing and serves both as a home and storage. However, the massive open floor space of a barn provides endless options of design to suit your needs and budget.

The barndominium has a high potential for energy efficiency; however, there can be challenges around zoning. If you are in the right area, the cost to build one of these beauties can range from $65–$245 per square foot.

Innovative Homes: 3D Printed Homes

3D printed homes are the latest technological innovation in homebuilding. These homes are built using a 3D printer to create a structure by printing the house in layers.

Utilizing advanced cement printing technology, 3D-printed homes offer a sustainable and cost-effective alternative to traditional construction methods.

Companies like Alquist 3D and ICON, in Austin, have been pioneering this approach, looking to shake things up in the housing market with efficient and customizable designs. These homes can last between 50-300 years, depending on the material used. In addition, you can have a house built in weeks versus months, depending on the size.

I see this as an affordable way for families to build that dream ADU or family suite on their lot. This sustainable way of building could be a game changer if adopted by the community regulations. 

Final Thoughts

Building an affordable home requires careful planning and strategically selecting construction methods. Prefabricated, ranch-style, and barndominium homes remain practical choices, while 3D printing innovations may represent the future of cost-effective housing.

Understanding land acquisition, infrastructure costs, and regulatory requirements is essential to making informed decisions that align with budget and long-term value. As the industry evolves, emerging technologies will play a key role in shaping the next generation of affordable home construction.