Post updated on Sept 5, 2023
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A shipping container is a large box made of steel that is traditionally used for storage and to transport goods long distances. Shipping containers are constructed from Corten steel (or weathering steel) and come in a few different sizes, but the most common sizes of a standard shipping container are 8’x20’ or 8’x40’. They are built to withstand inclement weather and abuse during transport by ocean, rail or land, and usually have a shipping lifespan of 25 years.
A shipping container home is exactly what it sounds like: a living space constructed from a standard shipping container or containers, sometimes involving the welding together of more than one container to make a structure wider or taller, that is modified to have most of the things you’d find in a traditional house.
It’s likely you’ve heard a lot about people who are choosing to abandon traditional, larger, wood frame homes for “tiny homes” that are more affordable to build and maintain, more environmentally conscious and, ultimately, offer a simpler, more minimalist way of living. Right along with the tiny home movement comes container homes, which continue to gain popularity for many of the same reasons.
While BigSteelBox offers shipping container modifications such as adding electrical options like heat, lights and cooling, as well as insulation, windows and doors, we do not build or sell container homes. However, we do sell new and used containers to those planning to outsource the work or complete the construction themselves.
If you’re considering a build like this, but still on the fence about it, read on for some pros and cons of shipping container homes.
As mentioned above, shipping containers are made of tough, corrugated Corten steel, which can withstand extreme weather conditions and constant movement. Thanks to its strong steel frame, walls, ceiling and floor, it won’t bend or shift under the weight of its contents. Fun Fact: Some bridges are made from Corten steel!
Shipping containers are made to protect belongings from the elements when being shipped by sea, rail and land. As such, building a home inside of a shipping container (or containers) would provide the same structural and security benefits.
Shipping container homes can be completed much more quickly than the average new build home construction with a wood or concrete frame. This is true for a few reasons, but mainly it’s because container houses are built on a smaller scale than most other homes. Plus, the container structure itself (the frame) has already been manufactured and only needs modifications to make it livable.
Another pro to shipping container housing is that they’re portable! And because of their steel frame, you don’t have to worry about it bending or shifting in transport.
Depending on their size, container homes can be moved and transported by either a forklift for individual containers under 10,000lbs, or crane for larger container structures. Assuming the container house has electricity, water and septic, there will need to be proper disconnection and reconnection to those sources before and after moving it, but the structure itself is usually mobile and you could even move it to a different city if you wanted to.
According to Altus Group’s 2022 Canadian Cost Guide, building a traditional single-family home in Canada ranges from $100 to $275 per square foot, depending on where you live.
“Just like buying a house, Vancouver and Toronto are the most expensive cities in which to build a new home in Canada. In Vancouver, the process costs between $150 and $275 per square foot, while in the Greater Toronto Area it runs from $165 to $260 per square foot. Calgary and Edmonton, where prices range from $125 to $200 per square foot, are cheaper options.” Zoe Demarco, dailyhive.com
In addition to location, costs will also differ based on the types of material and finishes you choose to use, but on average, the cost to build a new 2,500 sq ft wood frame home in Canada, excluding the cost of the land/lot and other requirements (i.e. electrical and plumbing connections in a city or rural area), can range between $250,000 – $680,000.
Building a shipping container home is cheaper based on a few factors. Obviously, they’re built on a much smaller scale and you’ll need less materials to complete the interior, so the materials and labour involved will cost less.
The structure or frame of a container home is already there, so you’re actually modifying it versus building from scratch. As such, the main factor to consider when pricing out the “shell” of your container home is the number of containers you need to purchase for the home, and modification costs if more than one container will need to be cut and welded together.
To give you an idea of what it costs to buy a new 20′ shipping container in Canada, below is some pricing for reference. It’s important to note that pricing varies from city to city, and will also be impacted by availability, size and condition*:
*Prices above are excluding taxes, subject to change without notice, and do not include delivery.
After the cost of the container(s), the remaining work will also depend on where you live and the finishings and features you want. Smaller, more basic container homes can range between $25,000 to $40,000, while larger homes built with multiple shipping containers and more customized features can range in price from $100,000 to $175,000.
When constructing a container home, you aren’t limited by traditional building methods or designs. Shipping containers can be used in extremely unique and creative ways! A lot of these homes have a modern, industrial feel once they’re completed, which is popular within the “minimalism” design style.
While you’ll have to find ways to make the most out of a smaller space on the inside of your container home, this is actually another opportunity to get creative. Just be sure to do some research on the latest space saving designs and layouts.
To maximize the use of your space, choosing furniture that can be tucked away or used for more than one purpose is ideal when decorating a tiny or container home. For example, a wall bed (often called a Murphy bed) may be a good choice as there are styles available that allow it to double as shelving or a desk/workspace when it’s stowed away. There is also plenty of furniture and designs that have built-in storage, which that can be handy in a container home while also being stylish.
Wall bed photo courtesy of visualhunt.com.
On the other side of the coin, there are also challenges and downsides to building a shipping container home. Here are a few of the cons you’ll want to consider.
The COVID-19 pandemic caused many challenges for manufacturing and shipping sectors all over the world. Many factories were shut down and stopped production for long periods of time, which affected the supply of all sorts of goods. In addition, many shipping lines were closed or slowed significantly. Both of these factors directly affected the ability to produce new shipping containers in China and move them to other countries, like Canada.
As such, shipping containers have been in low supply and high demand since late 2020, and while the industry is slowly recovering, it continues to affect their availability and pricing. Because most container companies in Canada focus on renting containers for moving and storage purposes or transporting goods, fewer have been available for purchase.
When building a container home it’s best to use “new” or “one trip” containers so that they will be in better condition and last longer. Due to the supply shortage and the limited ability to bring a new container from overseas, purchasing new shipping containers can be more expensive and take longer than usual.
Although a shipping container is a great option for temporary or long term storage, it is a very small space for a person (or people) to live in.
The average 8’x20’ container gives you 160 square feet of space, whereas an 8’x40’ container offers about 320 square feet of living space. There is the option to combine multiple containers to create a bigger space, but doing so will increase costs and time because there will be work needed to retro-fit them into one unit.
So, the main takeaway here is that you’ll need to think things through and be realistic about your ability to live in such a small space.
A shipping container can get extremely warm during the summer months if they aren’t well insulated and equipped with proper venting and cooling systems. Because containers are made from steel, without insulation they will absorb heat and warm the interior quite quickly.
This means you will need to add some type of insulation to your container, as well as a wall finish, vents and ideally a built-in air conditioner. If done properly, this can be done efficiently and look great in the end, but will take a bit of space away from your already limited square footage.
There is the possibility of health hazards associated with living in a shipping container home, but this con is more likely to be an issue when older, second hand containers are used. This is because there’s the possibility that chemicals were used to treat the wooden flooring, or the paint used to protect it from seawater during transport may release toxins.
So, while using new containers may cost more but be safer, some people want to use second hand containers to leave a smaller environment footprint.
“If you are using the new containers to build your home, then you need not worry about these (health) concerns as you can always dictate to your manufacturer, not to treat the floors or to coat the containers with harmful chemicals. However, using new shipping containers to build your home is sure to increase the cost and it also defeats the environment-friendly credits that you would have gained by using recycled shipping containers.” Susan Tora, Customer Success Manager at InnoDez
Using spray foam insulation, non-breathable underlay and flooring, adding vents and exhaust fans to help with airflow will help reduce the health risks, however, it’s still important to research this topic and discuss it with your contractor.
Because shipping container homes are a fairly new trend, most cities don’t have specific regulations in place for them. This may result in the zoning and permit process taking longer than usual, or even being denied.
In addition, each province will have its own building codes and requirements that must be met for it to be approved. This can include items like emergency access, alarms, energy efficiency and plumbing. We recommend contacting your local city planning office for more information about building codes, zoning restrictions, and permitting requirements for container homes, or find a contractor with experience in this area.
The fact of the matter is that shipping containers are not designed or built as living quarters so there are bound to be construction challenges. Unlike wood frame structures where a home is built from the ground up and leaving spaces for doors, windows, plumbing, etc., are part of the process, modifying a shipping container requires openings to be cut from steel walls, and you’ll likely need to get creative when it comes to putting in a bathroom. And, every “extra” you add will take away more precious space that is already scarce.
Also keep in mind that steel can rust if it’s exposed to certain elements and not properly protected. According to containerhomehub.com, rust occurs on shipping containers when they are exposed to moisture and oxygen, which leads to oxidation (the breakdown of iron-based metals). Rust can weaken the structure of a shipping container home and lead to additional problems, such as leaks and water damage.
“When left unchecked, rust can create serious problems for your container home. It can weaken the containers, which increases the risk of structural damage during a storm. Rust may also lead to gaps that allow moisture to reach other areas, causing water damage and leaks inside your home.” Gail Rose, containerhomehub.com
To prevent rust, shipping containers must be coated with a protective layer of paint or an acrylic finish to prevent moisture from reaching the steel underneath. You’ll also want to ensure you especially protect the roof from pooling water, install an effective gutter system, and repair any areas showing signs of rust as soon as possible.
Depending on where you live, there are likely a few companies that sell new and used shipping containers, including BigSteelBox. There are even some that will build your home for you and deliver it to your location.
While BigSteelBox does not build container homes, we can complete a variety of modifications to your purchased container before we deliver it to you. Check out our Modifications section to learn more about those options.
To give you an idea of the container modification process, this is how we build a shipping container office. Obviously a container house would have many more requirements, such as plumbing, storage, and a place to sleep, so it’s important to do your research, enlist the help of professionals when needed, and be prepared before you start to build your dream container home.
Much of the attraction to and buzz around shipping container homes is related to price. Some of it is fair, some of it is not. In many cases, shipping containers can be built quite cheaply, perhaps even cheaper than an equivalent house made with traditional construction techniques.
While there are a huge number of variables that influence cost (geography, size, design, interior finish-out, etc), we generally find that container homes do offer some cost savings for most owners. And, if you’re interested in doing some of the work yourself while being resourceful with some of the other expenses, the savings can be more significant.
This doesn’t necessarily mean container homes are inexpensive overall (though they sometimes can be). Instead, it means when comparing a container home to a similar equipped traditional home, you may see lower costs. Calculating exactly how much less requires getting really specific on details.
To start, it’s important to frame the subject of affordability in terms of why cost is an important consideration.
No matter if you’re a fixed-income retiree, a Silicon Valley millionaire, or a middle-aged middle manager, we all have a housing budget. And as with all budget line items, if you can spend less while still adequately meeting your needs, that free up funds for other purposes.
A common rule of thumb says that you should aim to spend no more than 30% of your income on housing. Survey data from the US Government’s Bureau of Labor and Statistics below shows that most families, regardless of income, achieve that for the raw cost of the housing itself.
However, when factoring other housing-related expenses like utilities and maintenance, many families on the lower end of the income range exceed 30%.
In most households, housing expenses make up the largest percentage of their expenditures. Why is this relevant? Impact.
Small changes on a percentage basis can have large impacts on the bottom line. Think about the actual cost savings of reducing your mobile phone bill by 10% versus reducing your housing expenses by 10%.
Clearly, focusing on large expenses like housing can really help your overall financial pictures. And thus, analyzing if container homes can offer cost savings in your specific situation is an effort worth undertaking.
The conclusion from the previous section is clear, right? Spend as little as possible on housing, and reap the benefits of the saved cash. Well, that’s actually not exactly what we’re saying at all!
Before going forward, it’s important to understand the difference between being frugal and being cheap. The two terms seem almost synonymous, but they actually have very different meanings in your day to life.
Cheapness generally equates to paying the lowest price for something, period. It’s a short-sighted view that truly does lead to cost savings up-front, but not necessarily over a longer period of time.
Frugality, on the other hand, is about prioritizing spending to ensure your limited resources are allocated to the things you most care about.
When you’re frugal, you:
We hope we’ve convinced you that having frugality mindset is not only a helpful way to live in general but also a great way to approach the decision of using shipping containers for your next project.
Let’s talk about some of the choices you can make to generate cost savings.
The first area of savings are those due specifically to using a shipping container. These are somewhat ‘passive’ savings as they don’t require any other real adjustments to your design or lifestyle and just take advantage of the positive properties of containers.
If you want to learn more, please visit our website Expandable Container House.
When compared to traditional types of housing, container houses have different line item costs. However, these do vary somewhat depending on your design.
A few of the common areas of savings are:
However, there can also be some areas where containers may end up costing you more money, such as:
The table below from the National Association of Home Builders shows what percentage of an average single-family home’s cost goes to different construction line items. While every home is different, this table can help give you a rough idea of where you might be able to save with a container home, depending on your choices with some of the items above.
Understand the costs in the above table are inclusive of material and labor, though often paid through subcontractors. If you’re doing some of these tasks yourself, you can expect the cost to be lower (your labor is free), which will, in turn, change how the percentages flow together.
Again, don’t treat this information as the gospel, as it is based on averages taken across a huge variety of home types, sizes and locations. Rather, just use it to get a rough idea of how much different construction tasks cost in comparison to others.
Armed with this information, you can decide if the container home you’re envisioning may offer cost savings just by being made from containers. Then, you have the choice of a cheaper house of the same size or a larger house for the same price.
However, looking for these container-based cost savings isn’t the only way to keep some money in your pocket. Read on to find out some other options you have available.
A second way to reduce the cost of your container building is quite logical: reduce its size.
Let’s start with some data. The following charts were created based on data compiled by this site, which itself is based mostly on US Census data with some other sources used for earlier years.
The first chart shows two trends that are seemingly at odds with each other. The average household size has been going down over time, while the average house size has been going up. What this intuitively means is that average square footage of a house, per person, has been going up even more. That can be seen in the 3rd line on the graph.
However, given the different axes and starting points, it’s a bit hard to compare the changes in each measure to each other. So, we’ve normalized all the numbers in the next chart based on what they were in 1920. This highlights the growth (or shrinkage) over time for all measures.
These are pretty surprising statistics! The average household size has almost been cut in half from 1920 to 2015, presumably a function of fewer multi-generational households and fewer children per household.
But look at the square footage numbers. The average house size has increased a little over 2.5x, while the average house size per person has increased almost 4.5x.
We get it, that was a lot of numbers, but what do they mean? Let’s start with a question.
When you look back on old family photo albums, newspaper clippings, or even movies from the early 20th century, what do you see? Are people sad and feeling hopeless about their small house?
Or are they strangely happy? Maybe, even happier than a lot of us seem today? In most cases, they generally seem to be doing pretty well, right?
The takeaway then is that despite having 4.5 times as much room in a house now than they did back in 1920, people don’t really seem 4.5 times more fulfilled. Yes, it’s 4.5 times as much space to spread out and impress your neighbors with. But it’s also 4.5 times as much space to clean, heat, cool, and furnish.
Of course, while the numbers are scientific, the sentiment behind them is just our opinion. And maybe you disagree, which is completely ok.
Regardless, we’d urge you to stop and thoughtfully consider what is driving the size of your house. Think about if you could still be happy with a bit less.
We’re not talking about living like the below picture shows! Instead, what size home would your grandparents or great-grandparents have probably thought was normal when they were your age?
This idea of living small isn’t for everyone, and if you have the means and desire to build a large house, we fully support that as well. We only ask you to challenge your assumptions about why before committing to such a large purchase.
Perhaps being frugal on your house size might free up resources for other things that are more important. That could be higher furniture quality, a better neighborhood, or even a nicer family vacation.
Let’s say you’re on board with this idea of “less is more” and practical minimalism. How do you start?
Media exposure and societal pressure have conditioned almost all of us to believe that ‘bigger is better’. And in some cases, that’s definitely true. But not for everyone. To find a better way, you need to ask yourself the right questions.
Let’s say you have a consultation with a financial advisor about the idea of purchasing a home. One of the first things they’ll try to calculate is how much home you can afford. But that’s the wrong question.
Have you ever heard of bottom-up and top-down thinking? The above case is an example of a top-down approach.
It’s kind of like going to the market and getting the biggest basket you can find, then filling it full of bread. But what if you don’t actually need that much bread and some of what you bought ends up moldy and stale because you couldn’t eat it all?
Using a bottom-up approach would start with your needs. How many bedrooms do you need, and what size should they be? Do you need a bathroom for every bedroom, and if so, how big do they need to be?
Perhaps there are rooms you think you need, but you’re just holding on to old habits. For instance, if you only use a formal dining room two or three times a year, would you be better off renting out a restaurant or park pavilion for those times instead? Think about the thousands of dollars of construction, maintenance, utility, and furniture costs you’ll pay over the years for that under-utilized room.
Questions like this will help you determine the combined square footage you actually require to meet your needs.
It’s more like figuring out how much bread you actually want to eat and only buying that amount, regardless of how big your basket is. No bread is wasted, and now you have room to buy some fruit!
Remember this: what you can afford and what you need are two different things. Both are important, and there is nothing inherently wrong with buying more than you need. Everyone likes to splurge now and then. If you do so, just make sure that’s a conscious choice, and that you clearly understand the difference between what you need and what you can afford in your mind.
Another way you can affect the price of your home is by adjusting the level of extravagance.
Container homes have been built across the entire spectrum of luxuriousness. Some of them are barely one step above camping. Others almost seem to be built to five-star resort standards.
Remember that you start with a roof, floor, and walls in your container. You’re completely in control of what you add (and what you spend) after that.
Quality can be important across a couple of different measures. Think about the difference between high-quality materials vs high-quality craftsmanship.
A skilled artist can make some beautiful items out of trash. But some people may never get over the fact that it’s still trash.
A novice artisan can have access to the finest tropical hardwoods and the most beautiful granite. But their work may not look very good because they don’t have the skills and experience to shape the materials into something beautiful.
Some materials may look nice, but are fragile or wear easily. Some craftsmanship is very exacting and yet is almost impossible to notice without a trained eye.
Of course, most things exist somewhere in the middle of all these qualities. But you need to find where on the spectrum you want to be for both materials and craftsmanship.
Your container building will present hundreds of choices for you. What type of floors, what type of appliances, what type of handles on the cabinets.
Almost every item will have multiple options at various price points. Ask yourself how you want it to look and perform, how long you want it to ask, and what type of maintenance it will require.
Remember what we talked about in the section above on Frugality and pick the characteristics that you most value.
Being conscious about these choices can enable you to save money on your container home while still getting quality in the specific areas that matter to you.
Would you rather have a Ferrari with a few scratches on it or a flawless Hyundai sedan? The answer is different for everyone.
Some people would go crazy having to look at those scratches every day and the Ferrari wouldn’t be worth it to them. Others would be happy that they have the experience of driving a Ferrari every day, even though it’s aesthetically less pleasing.
There isn’t a right or wrong answer. As we keep saying, you have to pick what you value.
Quality and condition are two different things, though they are often confused with each other. Keep them separate in your mind and you might find some great deals.
Oftentimes, the stores you buy materials from will have slightly damaged materials for sale. Maybe something happened during the trip from the factory, or maybe an employee at the store accidentally damaged it. Occasionally, the damage is so minor you have trouble even spotting it.
A lot of container homeowners have also had success with used or surplus materials. Sometimes they source materials from specialty stores that deal in second-hand building materials. In other cases, materials are found a piece at a time from owners doing renovations and selling the old stuff on a local marketplace or website.
Finding used or worn materials like this is not only economically advantageous, it’s ecologically beneficial as well. You’re keeping trash out of a landfill and saving yourself money. Win-win!
The final area we’ll highlight for cost savings is the cost of land. Most people focus on the container home itself while failing to recognize that using containers presents some opportunities to use different types of land than you might otherwise be able to with traditional construction.
Given the strength containers and their minimal foundation requirements, you could build on land that might be unsuitable for traditional construction without extensive (and therefore expensive) site work. If the land is full of rocks and low spots, just bridge over the problem areas. Land that’s in a floodplain would scare a lot of people away, but it’s easy to build off the ground with containers.
Or, think about a building lot that’s full of trees. Your city may even have regulations about how many and what type of trees you can cut down. This can make it really hard to find a large, clear area for a suitable home. But containers are long and skinny, so you can route around and between trees as needed.
What about land that’s strangely shaped? Maybe it’s long and skinny, or wedge-shaped, or has the appearance of an ‘L’. Arrange your containers in a way that works with the boundaries and offsets of the land is comparatively easy.
When traditional home buyers and builders see land that’s similar to what’s described above, they often skip over it. It’s too difficult to fix the land and too complicated to change their design. They’d rather have a wide-open property with plenty of room for their building.
These pieces of land can be great opportunities for prospective container homeowners though! Let the design flexibility translate into land savings.
Get in touch with a local realtor that specializes in land sales and ask what’s been sitting on the market for a while and hasn’t been selling, then find out why. Is it something you can accommodate and work around with containers? If you do this early in the planning and design process, you still have a lot of flexibility in your design to work around narrow lots, strange topography, etc.
We hope that we’ve convinced you not only how you can have an affordable container home, but why that might be a goal worth achieving in the first place. There may be more paths to get to cost savings that you had initially even considered!
Can you think of some other interesting ways that containers might present cost savings when compared with traditional construction methods? Let us know below in the comments section.
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