Check out these affordable alternatives to purchasing a single family home if you are looking for cash or simply to downsize.
According to the National Association of Homebuilders, the price of lumber tripled in the year before April 2021. This caused a 35,872 increase to the cost of building a single-family house. The National Association of Homebuilders reports that the high demand for lumber has also driven up prices of other materials. Prices are expected to stay high for another two years.
You may not be able to downsize into a single-family house if you sell your current home. It could, however, free up some cash to allow you to look at alternative housing options. Here are some ideas you could use the money for.
Container Homes
Shipping containers are a great alternative to lumber, especially when it is in short supply. Some adults have been using them for home building. Shipping containers are used to build prefabricated houses. These homes can be built much quicker than traditional homes.
A basic shipping container house can be built for less than $20,000 while larger homes made from several containers may cost more than $200,000 A shipping container home can be built for less than half the price per square foot of a conventional home. You also have to consider shipping costs. Avoid unnecessary features to keep costs down. Some luxury shipping container houses with all their bells and whistles end up costing the same as a frame home built on site.
Barndominiums
Converting a barn to a living area could be a cheaper alternative than building a single family home if you like the rustic look of a farmhouse and barn. Barndominiums or barndos are made of a metal shell and basic framing. Barndominiums are often equipped with large windows and roll up doors. They make the perfect structure to complement an outdoor lush environment.
HomeAdvisor estimates that building a new barndominium costs between $30 and $40 per square foot, just for assembly. This is much cheaper than building a conventional house which costs between $100-200 per square foot. You’ll need to pay for sewer, plumbing and HVAC costs, as well as electrical costs, in order to make your barndo livable. Your siding, roof, and interior furnishings can also affect the cost of building. If you keep it simple, you will save money compared to a single-family home.
Tiny homes
The majority of tiny houses are on trailers, and have a size less than 600 square foot. These tiny homes are a great option for those who want to simplify their life. You can either buy a tiny house that has already been built or you can build your own using a variety of materials. A tiny house can cost anywhere from $30,000 to $60,000. However, some luxury tiny houses are more expensive. The savings are substantial when compared to the cost of a home that is built on a solid foundation.
Small homes are also easier to maintain, and their utility bills will be lower. They’re also temporary, which means your property taxes will not be higher than the amount you pay for the land. Tiny houses can be as durable as traditional homes, and due to the popularity of vacation rentals you may also want to consider reselling one.
School bus houses
They are made of durable materials such as steel and are therefore ideal for conversion to a home. They’re also already on wheels and their engines are capable of lasting a million or more miles. A used school bus costs as little as $3,000. The cost of adding a bathroom and kitchen to the vehicle is usually between $10,000 and $30,000. This makes skoolies an affordable alternative to building a conventional home.
You can also buy a house that has been partially converted, meaning some of the hard work is already done. You can avoid the trouble of ripping all the seats out if you buy a partially converted bus.
Outbuildings
You can convert a prefabricated structure, such as a shed or storage unit, into a small house with a foundation. These buildings are available in a range of sizes and materials. They can also be customized to suit your needs. Outbuildings can be purchased for as low as $10,000. However, shipping fees will also need to be paid. Prefab cabins are available with a porch on the front and large windows that let in light.