Do Barndominiums Hold Their Value? The Results on Appreciation

Last updated on April 5th, 2024 at 01:35 am

Are you considering building or buying a barndominium in 2024?

If so, you won’t be alone in wondering – Do barndominiums hold their value over time?

Fortunately, all indicators point to YES.

Although Barndominiums are still somewhat of a newer trend, recent sales data reflects that recently built barndominiums have appreciated at a rate similar to that of other home styles. The data below reflects a sample of recent barndominium sales and how much they have appreciated since their last recorded sale date.

As the barndominium trend continues to gain popularity, it’s more important to understand whether or not these unique properties will hold their value down the road.

We’ll dive into the topic of barndominium appreciation with guidance from a certified appraiser, and determine how you can keep your barndo’s worth in check.

Let’s get started!

• Growing Trend: Barndominiums have gained popularity in recent years as the benefits of building and owning this type of home become more well known.
• Appreciation Potential: Despite being non-traditional, barndominiums generally hold their value well over time just like any other home that is maintained well. Many real estate professionals are optomistic about their appreciation potential.
• Value Factors: Much like traditional homes, primary factors that influence a barndominium’s resale value include location, size or living area, and the condition and quality of construction.
• Enhancement Strategies: Efficient and modern floor plans, high end finishes, curb appeal, and unique design elements will enhance a barndominium’s resale value.
• Resale Challenges: Despite their popularity, some challenges in resale persist, including buyer unfamiliarity and financing difficulties due to their unique nature. Education about the benefits of barndominium living and working with experienced lenders and appraisers can lessen these challenges over time.
• Maintenance Importance: Regular maintenance is important for preserving a barndominium’s value to maintain its long term value.
• Successful Transactions: Examples of successful barndominium resales have demonstrated their value retention in the market in recent years.

Before we dive into appreciation, let’s start with a brief overview of what constitutes a barndominium.

The term barndominium refers to a steel or wood post-frame construction pole barn style dwelling. Most barndominiums feature steel frame exteriors, high ceilings, and open concept layouts, and are gaining popularity as a cost effective home building solution.

Barndominiums can also refer to existing barn structures that are converted into a livable dwelling.

One of the main features that make barndominiums stand out is their open floor plans and high ceilings, which create a spacious and airy feel. They also often incorporate industrial elements, such as exposed beams and metal siding, giving them a modern and sophisticated feel.

Another appealing feature of barndominiums is their ability to be customized in terms of layout, design, and finishes.

While they are commonly used primarily as residential properties, they can also incorporate workshops or storage spaces, making them a popular choice for buyers needing a multifunctional space.

As mentioned earlier, barndominiums have been gaining traction in the real estate market over the past few years. This can be attributed to their popular design elements, cost-effectiveness, and flexibility.

According to Business Insider,

“1,875 home listings mentioned the term barndominium in 2023 in comparison to 774 in 2020.”

Don Howe of Barndominium Life notes:

“We’re seeing existing [units] move fast on our barndominium marketplace, even in the sluggish housing market of Q4 2023. If you’re considering a barndominium, rest assured that people will want to buy them from you someday.”

This trend is expected to continue as more people seek out more affordable and customizable housing options.

When it comes to resale value, there are a few main factors that can influence how much a barndominium will sell for down the road.

Like many other home types, these include it’s location, size, condition, and the quality of construction.

Location is an important factor in any real estate market, and barndominiums are no exception.

A property located in a more desirable or growing area with good schools and convenient amenities will almost always have a higher resale value than one in a less desirable location.

Since the majority of barndominiums are located in more rural areas, this can be a factor in their resale potential in some markets.

However, with the increasing popularity of these homes, more urban and suburban areas are starting to see barndominium developments as well.

While barndominiums can range in size from small one bedroom structures to large ranch estates – as a general rule, larger homes tend to have higher resale values.

This is because they offer more useable space, additional bedrooms and baths, and the potential for multi-generational areas or in-home workspace.

The condition and quality of construction will always be important factors in determining any home’s potential resale value.

If the home is well-maintained and built with high-quality durable materials, it is more likely to hold its value over time.

The good news is that barndominiums, while being lower cost to construct, can still include higher-end finishes and features.

Don’t let the steel frame or basic shape fool you – the interior of some modern barndominiums can rival that of any luxury home in terms of style and quality.

There are steps you can take to enhance the resale value of your barndominium and make sure it holds its value over time.

Functional and versatile layouts that maximize space and allow for customization down the road can increase the desirability of your home for future buyers.

Eye-catching features, such as a custom-built barn door, stained concrete floors or other statement features can make your barndominium stand out and potentially increase its value.

My only caution in this regard is to consider what will still be popular in years to come.

Even If you love bold colors and wacky decor, stick with neutral designs and tones for the components that can’t be changed later on.

Features like energy-efficient appliances and smart home technology are becoming more desirable among buyers, so including these elements in your construction plans could also pay off in the long run.

Outdoor living spaces are a classic value-enhancing amenity that, thankfully, can be easily incorporated into a barndominium design.

Whether it’s a covered patio or deck that spans the length of a wall, these features can be easily incorporated and can add value to your home, while also creating a functional and beautiful space for you and your family.

Browse Floorplans

RELATD: SPOTTING POTENTIAL IN FIXER-UPPER HOMES

While barndominiums are certainly gaining popularity, some challenges remain when it comes to resale in 2024.

Many traditional buyers are not familiar enough with this type of home and may have misconceptions about its durability or functionality.

In addition, it can be difficult to finance barndominiums as this type of home build is unchartered territory for many lenders.

Farm credit lenders or local banks are more likely to work with you on a barndominium loan.

As more barndominiums are built, buyers and lenders will become more educated about the benefits of barndominium living. These challenges may become less of an issue over time.

We’ve covered some things that can increase the resale value of your barndominium.

Let’s review some factors that could have a negative impact.

While barndominiums are known for their open-concept layouts, a poorly designed plan can be a turn-off for potential buyers.

Although design trends change over time, a buyer in today’s market will still expect a certain number of bedrooms and bathrooms (depending on your square footage), as well as dedicated areas for things like storage, utilities, or workspaces.

If you get too personal in your design choices and neglect to include features that are expected in your market – it could hurt your resale value.

First impressions matter. This holds true anytime you’re selling a home.

Some barndominiums tend to have a very basic appearance, due to the way they’re constructed.

To combat this, consider improving your barndo’s curb appeal by incorporating design elements that soften the exterior, such as a front porch, landscaping, dormers, additional windows, or a complementary color scheme.

Location plays a huge role in the resale value of any home, and barndominiums are no exception.

If your barndominium is located in an area that’s too-remote or isolated, it will attract a limited number of buyers – resulting in a limited amount of competition.

As we all know, Low Competition = Low Offers.

When it comes time to sell your barndominium, buyers who will clamor for your home will all have a few things in common:

1. They prefer open-concept layouts and natural light: These are two of the main features that appeal to buyers of this home style. If you’re selling, make sure you highlight these features and draw attention to them. Stage your layout to enhance open areas and bring in as much light as possible.
2. They may have a need for heated workspace or acreage: Barndominiums are famous for being part home, part workspace. If you have a large workshop area or expansive acreage, make sure to emphasize this in your listing and marketing materials. Clean the workspace or garage area out and show off how large and spacious it is.
3. They are “one” with the outdoors: One of the best features of barndominium builds is their ability to allow the interior space to flow easily into the outdoor living areas. With the option for large sliders or even overhead doors that open up into the main living area, barndominiums are attractive to those who love nature and the outdoors. Emphasize this by highlighting outdoor living spaces, making them welcoming and functional. Show potential buyers how they can utilize these spaces for entertaining and enjoying the beauty of their surroundings.

Consider these factors when making any updates or renovations to your home.

One of the hurdles to building (or selling) a barndominium when it comes to resale is the appraisal.

Due to its unique nature and limited sales of similar homes, traditional appraisal methods may not accurately reflect the true value of your home.

To overcome this challenge, make sure your appraiser has experience with non-traditional homes and is properly educated about its features, including the durability of the materials used, energy efficient upgrades, or costs associated with additional improvements you’ve made.

This will ensure that you receive an accurate appraisal and don’t run into trouble during the home buying process.

RELATED: COMMON APPRAISAL QUESTIONS

One of the major benefits of barndominiums is their cost efficiency and durability. Many barndominium homes will still be standing when traditional homes have needed multiple component replacements.

This is due to the high-quality materials often used in their construction, such as metal siding and roofing. These materials are not only durable, but also low-maintenance, saving you time and money in the long run.

When discussing resale value, it’s important to highlight these factors as they will attract potential buyers.

In addition to cost and longevity factors, barndominiums can offer increased energy efficiency.

The use of natural light and energy-efficient materials could significantly reduce utility costs for homeowners.

Mention these energy-saving benefits that will appeal to environmentally-conscious buyers.

This Barndominium in Alabama was built in 2015. The property first sold in 2021 for $205,000, according to public records.

The house sold again just recently in May 2023 for $270,100, for an increase of $65,100 in just 2 years.

That’s an increase of over 30%, which is well beyond what is considered an “average” appreciation rate.

Granted, some of this may be due to the increasing home values in the last few years, but it shows that there was certainly no negative impact on appreciation due to the type of home.

View Data on This Home

This exceptional 3-bay pole barn house, nestled on a 14-acre lot in upstate NY, sold for $349,900 in 2022, and $364,750 just one year later.

That’s an increase of $14,850 in one year and it sold in under 30 days.

View Data on This Home

In the article below, the owner made the tough decision to sell her beloved barndominium – a home she built with her former husband.

Despite concerns about recouping its true value, due to custom (and expensive) features like heated floors and specialized horse facilities, the sale was a success.

The Barndominium is Sold!

Per the article, even some real estate agents doubted its worth.

However, a buyer who understood the property’s charm came along and paid a fair price with with the appraisal coming out at the value needed.

This barndominium in Maplesville, AL was built in 2005, and has a pool, barn, and gorgeous views.

The sale history indicates that the home first sold in 2020 for $259,900. It sold again in 2022 for $320,000, and yet again in 2023 for $358,000.

While most homes don’t change hands so much in a matter of a few years, this demonstrates the homes appreciation in just a 3 year period.

View Data on This Home

This converted Barndo, originally built in 1950, has a lodge-feel and rustic design elements. With 73 acres of trails, it’s no wonder the value is up there.

In this case we have a bit more history. The home sold way back in 2008 for $440,160. It sold again in 2021 for $650,000, and just recently in 2023 for $715,000.

That’s an increase of almost $275,000 over a 15 year period, or an average appreciation rate of 4-5% per year.

This isn’t an uncommon average over 15 years as home values rise and fall. Remember – In 2008 home values dropped significantly in many parts of the US.

View Data on This Home

This beauty, with overhead doors right into the living area, was built in 2008 and sits on 5 acres in Prineville, OR.

The history: This one sold in 2016 for $212,000. It sold again in 2021 for $339,000, and just recently in 2023 for $470,000. It looks nicely updated, which of course will have an impact on the increased sale price.

But again – the style of the home being a barndominium did not appear to have any negative impact on the value or how buyers perceive it.

View Data on This Home

So, the final answer to the question: Do barndominiums hold their value over time?

From this appraiser’s point of view, the answer is yes.

In fact, many real estate experts concur that these homes have great appreciation potential as the growing trend continues.

Our review of recent barndominium sales provides support for this conclusion.

A unique home can have it’s challenges when it comes to resale value.

However, as long as the home is acceptable to your market in terms of size, quality, room counts, and functionality, you can rest easy in knowing that there is most likely a buyer out there for your home.

The Verdict: Barndominiums are not only trending at the moment, but they also appear to hold their value and have the potential for appreciation – just like any other home type.

Maintaining your property well and being informed about market trends, will help ensure that your barndominium remains a sound investment for years to come.

While the exact appreciation of a barndominium will vary depending on location and market trends, the examples above give us some insight into successful resale transactions that showcase their value retention.

From the data above, we have an overall appreciation rate of 20-30% over a span of less than 5 years.

This just a small sample, and does not account for unknowns like renovations made, but these sales reflect that not only do barndominiums hold their value, but they can also appreciate, at a minimum, at the expected rate that other real estate is subject to within a given market.

As with any home, regular maintenance is crucial to preserving its value and ensuring it remains in good condition. While barndominiums may have unique features such as metal siding or exposed beams, they still require similar upkeep as traditional homes.

• Inspect the roof regularly for any leaks or damage. This is especially important if your barndominium has a metal roof, as they can be prone to rust and corrosion.
• Keep the exterior clean by power washing it at least once a year. This will help remove any dirt or grime that may accumulate over time.
• Check for any cracks or gaps in the walls, and seal them properly to prevent moisture from seeping in. This is especially important for barndominiums with steel siding, as rust can form if water gets inside.
• Regularly clean and maintain gutters to prevent clogging and potential water damage to the foundation of the barn.
• Keep an eye out for any pest infestations and take necessary measures to address them promptly.
• Check window and door seals regularly and replace as needed. Barndominiums tend to have a lot of extra space and high ceilings. This can increase your heating or cooling costs if you aren’t careful.
• Insulate the barndominium properly to prevent drafts and keep the temperature inside comfortable year-round. This can also help with energy efficiency, making your barndominium more attractive to potential buyers.

By keeping on on these regular maintenance tips, you can make sure your barndo remains in excellent condition and retains its value over time.

Preventative maintenance can also save you from costly repairs down the road.

So, take care of your barndominium and it will take care of you for many years!