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Shipping Container Conundrum: Are Container Homes Cheaper Than Traditional Ones?

You’ve seen them splashed across the covers of glossy magazines: eco-chic homes made of corrugated-steel shipping containers. They range from single retrofitted containers on scenic woodland plots to sleek medleys of containers melded together to form architectural marvels. But don’t assume you can get a deal on the environmentally friendly homes simply because they’re made from reclaimed materials.

This might come as a surprise for those who liken building a shipping container home to a do-it-yourself project. Square foot for square foot, shipping container homes can be more expensive to put up than traditionally constructed homes—depending on which architect you ask.

The price depends on the costs of the materials, the specialized labor required to work with the metal hulls, and whether the structure is outfitted on a factory line or a plot of land somewhere. And as with just about everything else in life, the more custom the project, the more it’s going to cost.

Why those cool container homes can cost more

Creating an upcycled shipping container home can cost about 20% more than standard construction, says Kevin Seitmann, a project manager at the architecture firm Tomecek Studio. The Denver-based firm has built three custom shipping-container homes in the past few years.

That’s because working with the corrugated steel typically used for containers requires special processes and materials. Just manipulating steel for the framing (i.e bones) of the house can require welding, cranes, and other costly tools that aren’t needed to build the other homes on the block, Seitmann says.

Figuring out how and where to incorporate insulation into the container’s structure is another challenge, as they’re made of metal that’s highly susceptible to extreme temperatures. That’s why insulation is needed.

“Without insulation, these containers can be 110 degrees in the summer and zero degrees in the winter,” Seitmann says.

How to get a shipping container home for less

Buyers on a budget should consider companies that use a process similar to a factory assembly line to make the containers habitable.

DeMaria Design, in Los Angeles, buys used containers and then retrofits them in a factory to be used in single-family homes, condos, and apartment buildings. Standardizing the process, which doesn’t require as much specialized labor and minimizes waste, helps bring down the price of the homes.

In contrast to these other assessments, architect Peter DeMaria estimates that his prefabricated container homes can cost 25% to 30% less than traditionally built homes. He says his clients can also tweak the design based on their personal preferences.

“If you think you’re going to get a high-end, Bel Air home with containers, you’re wrong,” says DeMaria, who uses anywhere from 1 to 15 containers per project. “But we’re able to be more frugal with our homes, without sacrificing design sensibility.”

The decision to own a container home may also save homeowners money in the long run.

“When we discuss the benefits of steel—its resistance to termites, mold, and fire—we also look at the building’s potential longevity and lifespan,” DeMaria says. “Steel-framed buildings last longer than wood structures, and many of the long-term maintenance costs are eliminated.”

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