Shipping Container Home Guide: Pros, Cons & Expert Tips | Field Mag

Once a fringe concept, shipping container homes have solidified their place of interest in the mainstream for being durable, versatile, and aesthetically-interesting shelters for seasonal and full-time living.

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No longer just for transporting goods from port to port, shipping containers—also called intermodal containers and high cube containers—can be successfully converted into everything from tiny homes and cozy cabins to multi-level compounds.

Interested in the possibilities and realities of container home living? This deep dive guide is for container-curious folks who want to know more about living life inside the box. In this expert-driven article, we share everything you need to know about custom container living, including pro tips on buying shipping containers and how to save some cash during your build process. So read on and dig in!

What Is a Shipping Container Home?

First things first, a container home is a small living space converted from one or more, new or repurposed shipping containers into a custom modern home. Since a standard high cube shipping container is typically 20 feet by 8 feet or 40 feet by 8 feet, shipping container homes have a minimum 160 or 320 square foot floor plan to work with, though depending on how many you stack together you can achieve considerable square footage quite easily.

Unlike traditional housing and other types of popular alternative living spaces like prefab or tiny houses, container dwellings have the added benefit of being easily scalable. And of course, the industrial aesthetic is truly unique, especially when set in a natural setting.

Advantages of a Shipping Container Home

Built of durable, weather-resistant steel that’s made to take a beating during international travel, shipping containers are designed purely for function. As mentioned, modularity allows you to stack more than one high cube container to create a larger floor plan and overall living space within the scope of a larger container home design. Containers also have standard dimensions, which can make designing a home more straightforward.

Another advantage is price (more on this below). Shipping containers are relatively inexpensive with an average price of between $1,500 and $5,000 depending on size and whether it's new or used, making them much cheaper to build with than lumber and other building materials for a traditional house. A recycled shipping container is also an eco-friendly option because it utilizes existing materials rather than new.

Pro tip: aim to buy your container(s) in November or December, says Devon Loerop, owner and builder of The Pacific Bin, which in just one year has become the most followed home on Instagram. During the holidays there is usually a surplus of containers in North America, making it easier to find a deal and save money when buying used containers.

In the same vein as the increasingly popular Accessory Dwelling Unit (ADU), building a shipping container house is another way to utilize alternative methods to create more livable space—be it a guest house, vacation home, or even a workspace. By design, container homes are a fairly low maintenance and even transportable home that can be a great investment for the DIY-minded homeowner.

Disadvantages of Building a Container Home

Like any dwelling, there are pros and cons here too, whether you’re building and buying. One of the main disadvantages of shipping container homes is insulation and temperature control. Steel is an excellent conductor of heat, which means that without proper foam insulation, shipping container homes can become very hot in the summer and very cold in the winter. Insulating a shipping container effectively can be a challenge, and it often requires adding insulation to both the interior and exterior, which can increase construction costs and reduce interior space. More on this further below.

Another common disadvantage of building with shipping containers is navigating building code and zoning challenges. Depending on your location, there may be strict building codes and zoning regulations that govern the use of shipping containers as homes—or even disallow them. In many instances building regulations have been established decades before the advent of innovative building practices like prefabrication, so it's not uncommon to find local regulations (and town committees, code enforcers, and building permit issuers) to be rather outdated and uncompromising. As such, obtaining the necessary permits and approvals can be a complex and time-consuming process—you may need to seek a number of variances in order to be granted a certificate of occupancy (CO).

For these same reasons, finding home insurance and/or construction loans by conventional banks may be tough for shipping container home owners and builders, too. Or it all can be super simple. It all depends on where you want to build.

In terms of design limitations, you can stack multiple shipping containers to create a house, but the containers themselves are not endlessly customizable. Picking your living room, sleeping quarters, door locations, etc is easy, but unfortunately heavy modification can reduce the structural integrity of a container, so keep in mind you will have limited layout options when designing your dream container home.

Container Home Building Logistics

Prefab vs DIY

From turnkey properties to customized builds, shipping container homes come in all shapes and sizes. There isn't just one way to convert these steel cubes into an inviting space—there are two: purchase a prefab container home or DIY.

A prefabricated (prefab) container house is built off-site by a qualified manufacturer and arrives ready-made. The obvious benefit is owning an almost move-in ready home (you'll still have to take care of the land, foundation, and connect utilities) which eliminates nearly all of the heavy lifting and construction.

The major downside to this is having less freedom to choose key design elements such as the floor plan, fixtures, and finishings. However, the trade-off is a professionally built habitable structure. And it's worth mentioning that some prefab container home manufacturers can also assist buyers with the finer points of the area's building codes, zoning laws, and permit requirements, which may be factor into your final decision.

The DIY route is the only way to get everything on your list and have complete control in the building and design process. But this also puts all of the responsibility on the homeowner turned builder, designer, and project manager. Researching floor plans, sourcing and installing all of the materials, and selecting every last detail of the home down to the "studs" takes time. And be prepared to hire professionals for specialized jobs like structural reinforcements, plumbing, and electricity.

What to Know About Stacking Containers

Shipping containers are designed to stack corner to corner, like you see on ships and in ports. If you want to stack containers in an unconventional way, or cut out big windows and doorways, it's important to note additional budget and work will be required. “If you're building a one-story container home, it's really a breeze. But the second you go up a floor, just know there's going be a lot of added costs and added structural reinforcement needed, especially if you're stacking in the non-conventional way,” explains Washington State-based builder Devon Loerop.

“When you turn containers 90 degrees and they're not stacked on the corners, and that's when you have to look at some serious structural reinforcement. It makes for a really cool design, but it's going be a bit of a headache. So you really want to do your due diligence and dive into understanding structural steel, what it's going to take to make your home 100% rock solid, and how that is going to affect the inside of your design.”

Want to build your own Pacific Bin? Loerop sells complete construction plans. Use code "FM20" to save 20% off.

Insulating Your Container Home

Metal is inherently a bad insulator so condensation is quick to form when it’s hot inside and cold outside or vice versa. For this reason, closed cell foam should be used for shipping container homes because it acts as vapor barrier as well as an insulator. If traditional insulation is used moisture in the form of condensation can cause corrosion, mold, and mildew to build up over time, which can be hazardous and dangerous.

Now, closed cell foam can be expensive, especially if you have to reach a specified thickness for R value to meet inspection (keep in mind building codes and requirements will vary by location and climate). “I paid something like $32,000 to do a closed cell spray foam,” shares Loerop of his Pacific Bin build.

But in hindsight, this one clever technique could have saved him thousands: "A way to save a ton of money is to just apply a very thin layer of closed cell spray foam on the inside of your walls—like three quarter to an inch thick. That will add a little insulation but the main thing is it's creating a vapor barrier for you to then roll in typical batt installation. That alone will probably save you like $15,000 on insulating your home.”

Container Home Costs

Building a custom container home can be significantly cheaper than a traditional home primarily because of the smaller footprint and materials. Before the project begins, take some time to run the numbers and set a realistic budget. Below is an overview of the main expenses for a DIY container home build—as it goes with any project, be sure to round up!

The total should include the cost of land, the containers themselves (from $1,500 to $5,000), delivery, site prep, a foundation, and permits.

Like any new home build, the shipping container home budget should also include enough to cover the building materials, as well as windows, doors, flooring, plus other interior and exterior finishings to make the space habitable and aesthetic. Hardy DIYers can save money on paid labor in a container home build, but for others, hiring professionals or buying a prefab container home can be a necessary albeit pricier option.

Of course, the cost will increase if you opt for a larger floor plan (meaning multiple containers and more construction materials), high-end fixtures and finishings, and add-ons like a rooftop deck or outdoor patio.

On average, the minimum amount homeowners should expect to spend on a completely finished 40-foot container home DIY build is $30,000-$40,. For an itemized list and full breakdown of the costs of this type of build, check out this video from a general contractor who converted a 40-foot shipping container himself using high-end materials and no additional paid labor, for just $33,000.

As previously mentioned, a prefab container home will inherently cost more in exchange for a beautiful, high-quality dwelling. Scroll through our list below of modern prefab container home builders to scope out the wide range of prices and options available on the market.

Surveying Pro Tip

Another cost saving tip from Loerop that's most relevant to rural builders of all project types pertains to property surveying. “I paid for like $8,000 for a site survey that was just completely not needed because I thought I had to be pinpoint accurate on where the home is located versus my construction plans,” Loerop shares about his property The Pacific Bin. But turns out, “if it's off five, 10 feet one way or another and you have four or five acres, it does not matter all that much. You can just open your and see the property lines on Google Maps and your location [while walking the property] and it should get you within five, 10 feet of accurate."

It’s little things like this that can save you considerable money on your total build cost. The beauty of doing it yourself!

Prefab Container Home Builders & Floor Plans

• ModBox Builders

• Honomobo

• Giant Containers

• Love Container Homes

• Uncontained Dreams

• The Pacific Bin

Frequently Asked Questions

How much do container homes cost?

The cost of a container home varies widely based on several factors, like the square feet, location, design, required modifications, permits, and labor costs required to install or set up the container. Generally, smaller container homes can start around $20,000 to $50,000 for a basic setup, while larger, more customized versions can range from $100,000 to $250,000 or more.

Is it cheaper to build a house or a container home?

It can be cheaper to build a container home compared to a traditional house, especially with smaller or simpler designs. Ultimately, the cost comparison depends on various factors like size, location, design complexity, required modifications, and the quality of materials used

How long do container homes last?

Container homes are typically clad in Corten steel, which is designed to withstand harsh marine conditions during shipping for about 10-12 years without significant corrosion. However, with proper home maintenance and treatment, container homes can last several decades.

Constructing a shipping container home can be one of the most rewarding things you do. However, you don’t want to rush into it too quickly and make mistakes which could have been avoided by proper planning.

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Consider these things. Are you going to be building with new or used shipping containers? Do you have the DIY knowledge to build the home yourself or are you going to need to use a contractor? Don’t make the mistake of rushing into the building process without figuring out exactly what it is you want to build.

Answer these questions before you start your container home project.

Can You Afford It?

A key question to ask yourself is whether or not you really can afford to move forward with your desire to construct a shipping container home.

Unfortunately, not everyone has a huge amount of cash sitting around. The majority of us have to be careful with how we spend our hard-earned money!

The simplest way to determine if you can afford it is to calculate your maximum funds available. After that, calculate your construction budget by subtracting your contingency allowance from your total funds available.

For instance, suppose you have $100,000 to spend. This $100,000 is a sum of all monies that you have for the project.  It doesn’t matter whether the cash is from your savings account, a loan from the bank, or money from your family. Set apart 20% of this $100,000 ($20,000) to use for contingencies (unexpected expenses that come up during construction). This $20,000 is your contingency allowance and is not considered to be part of your construction budget. Your construction budget will be $80,000 (the difference between the $100,000 and the $20,000). This remainder of $80,000 is the amount that you use as your construction project budget.

The contingency allowance is not used for planned costs but is reserved to cover unplanned expenses that will always come up. You don’t want to allocate every last penny to the project and find out later that you forgot to include the cost of something significant in your calculations. Prudent builders include a contingency allowance because you can be certain that there will always be unforeseen costs.

Note that an average contingency percentage is 20% as shown in the example. For very complex and expensive projects, a larger contingency percentage is recommended.

Which Containers Are You Going To Use?

Not only do you need to decide whether to use high cube or standard containers, you also need to decide on whether to build using new or used containers.

If at all possible, we recommend getting high cube shipping containers. They are a foot taller than standard containers, giving some extra headroom inside the containers. This allows you to insulate the inside of your ceiling and still maintain a ceiling height of eight feet.

For more information, read high cube vs. standard containers.

Decide whether to use new or used shipping containers. Many people that construct with shipping containers do so because they are conscious about the environment and want to save money.

Building with a used shipping container meets both of these requirements. Used containers are more Eco-friendly than buying new containers and are also less expensive than new containers. Read building with new vs. used containers.

Self-Build or Hire a Contractor?

Deciding whether to build your container home yourself or to get a contractor to build it for you is a big decision. There will be cost and time considerations.

Do you consider yourself a DIY type of person? Are you handy with a hammer?

Many people enjoy building their own shipping container homes because they like the challenge and the achievement once the home has been built.

Building the home yourself is not only cheaper than paying a contractor; it also means you can ensure the home is built to a high standard and that no corners have been cut. However, to build the home yourself you need to have at least some construction experience.

If you don’t have any experience and aren’t DIY friendly then you would certainly want to bring in a contractor to construct the majority of the container home. Bringing in a contractor will be more expensive but it’s likely that it will be faster since they can have several people working on your home at once.

Do I Have The Time?

While shipping container homes can be built quickly, you still need to consider time frames when looking to build a shipping container home.

If you absolutely have to move as soon as possible then building a container home probably isn’t for you. You would be best just purchasing a house which is already on the market.

If you have enough time and aren’t in a desperate rush to move then you can look at constructing a shipping container home.

Ideally, you should still allocate several months to build from scratch with no foundations or prefabricated containers.

How Do I Want My Home to Look?

Before you start constructing your container home, you need to have a definite idea about how you want your home to look and have a plan!

Changing your mind about a bedroom or the size of a room during the actual construction phase will cost you a lot of time and money. Instead, give yourself lots of time before you start building to design your home the exact way you want it.

How many bedrooms do we want? How big should we make the rooms? Where should the kitchen be placed? Have all of these crucial questions answered before you purchase your first container!

Where Do You Want To Build?

You need to decide where you want to build your container home.

A previous article considered whether it is better to convert onsite or offsite. Most tend to favor converting shipping containers onsite.

Selecting a location and finding a piece of land also helps to test whether you have enough money. If you want to convert a container home in Beverly Hills but find out that land is over $1,000,000 and your total budget is only $400,000 then you need to rethink your plan. Sometimes there just isn’t any land available in your preferred location. Then you must decide whether you are willing to wait for a piece of land to become available or whether you should look at buying land elsewhere.

Do You Have A Builder?

If you’ve decided to self-build, you don’t need to worry about this question. However, if you’ve decided to use a contractor to build your shipping container, you need to make sure you can find one in a timely manner.

You will need a contractor who has experience constructing shipping container homes. The contractor also needs to be available during the time frame that you are considering.

Contractors who have shipping container construction experience can sometimes be tricky to find. Know that, though, there are plenty out there. You may need to be persistent to find them! Don’t wait until you are ready to start construction to begin the process of finding a contractor.

Once you think you’ve found a contractor, make sure to get some reviews from their previous clients. Ask around in your local area to check their reputation.

If the contractor wants to offer you the world for $20,000, be very careful! It might seem like a bargain if they agree to build your dream home so cheaply. It is possible that for an unbelievably low price they might cut corners and reduce the quality heavily. Only use a contractor who is realistic in their offerings and has an established satisfactory reputation.

Also, if at all possible, take a tour of some other buildings that the contractor has built. This will give you a feel for their quality and style. Speak with the owners to see how easy it was to work with the contractors.

Are You Ready To Take The Plunge?

Building any new home is not for the faint of heart. Before you start constructing your shipping container home, ask yourself whether you are ready to take the plunge.

Is your lifestyle stable enough to accommodate building a new home? Are you just about to change jobs or start a family? Are your personal circumstances about to change drastically? If you answer yes to any of these, it is probably best that you don’t start construction quite yet. Building a new home can be stressful. It is not advisable to begin such a large project with other major life circumstances in flux.

Make sure your situation is stable before you take the plunge!

Conclusion

Please make sure you take the time to properly consider each of these questions before you start the journey to owning your own shipping container home.

Taking the time now will save you weeks, if not months, later on into your build. Making a modification halfway through the construction can cost you not only time but lots of money!

Let us know which question you found most useful in the comments section below.

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