Building a Barndominium? Read This First
Written By Chase Burns, Northwestern Illinois LandGuys Broker
If you’ve spent any time looking at rural properties over the last few years, you’ve probably noticed how common barndominiums and shouses have become. I’ve watched that shift happen in real time. I’ve built two barndominiums from the ground up, my family and I live in one as our primary residence, and I’ve sold several for clients across western Illinois.
Because of that, I’ve seen both sides. I’ve seen how well these buildings can work, and I’ve also seen where people get caught off guard. If you’re considering building a barndominium, 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.”
Why Barndominiums Appeal to Rural Landowners
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 construction style lends itself to large, clear-span interiors and flexible floor plans that can evolve as your needs change.
Whether you’re farming, running a business, or simply value space and functionality, that kind of layout is hard to beat. In many cases, these buildings go up faster than a traditional home and allow nearly unlimited customization. You get to design around your lifestyle instead of forcing your lifestyle into a pre-set floor plan.
Are Barndominiums Actually Cheaper?
One of the most common assumptions I hear is that a barndominium is always cheaper than a conventional home. Sometimes that’s true. Sometimes it isn’t.
The building shell itself can be very cost effective, especially with post-frame or steel construction. Where costs start to climb is on the interior. Spray foam insulation, high-end finishes, polished concrete floors, custom cabinetry, large windows, and upgraded mechanical systems add up quickly. It’s very possible to build a barndominium that rivals or even exceeds the cost of a traditional home.
The real advantage isn’t always the final price. It’s control. You get to decide where to spend, where to save, and what matters most to you.
“The shell may be cost effective, but finishes, insulation, and layout decisions are where budgets are won or lost.”
Zoning, Financing, and Appraisals Matter More Than You Think
This is where experience really matters. Zoning, financing, and appraisals are not the exciting parts of the process, but they can make or break a project.
Some counties have clear guidelines on how barndominiums are classified. Others are less familiar with them. Some lenders are comfortable financing them. Others are hesitant. Appraisals can also 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 finalizing a design, it’s worth talking with your county zoning office, a lender who understands rural construction, and a real estate professional who has actually sold these types of properties.
Planning the Layout the Right Way
One of the greatest strengths of a barndominium is freedom, 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 most people expect. In our own build, we made a conscious decision to design the living space so it truly felt like a home, not an afterthought attached to a workspace. That decision has paid off every day we’ve lived there.
Hidden Costs on Rural Properties
Some of the biggest expenses don’t come from the building itself. On rural properties, utilities and site preparation vary widely. Septic systems, wells, driveways, grading, and long electrical runs are all highly dependent on location and soil conditions.
These are often the line items that surprise people the most. Planning conservatively here can save a lot of stress and frustration as the project moves forward.
Resale Still Matters
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. Flexibility 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.”
Final Thoughts
Barndominiums and shouses are not a passing trend. When they’re planned carefully and built with intention, they’re a practical solution for modern rural living.
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’ve built them from the ground up, and I’ve 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
