Shipping Container Homes Explored - ONE-KEY™ Blog

Shipping Container Homes Explored - ONE-KEY™ Blog

The use of shipping containers in home design and construction has been on the rise. A report estimates that the global market size for shipping container construction will reach $73,070.5 million by 2025, up from $44,788.6 million in 2020. That equates to a compound annual growth rate (CAGR) of 6.5% from 2020 to 2025.

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This growth in shipping container architecture is well documented in the media. Numerous construction-related TV shows and YouTube videos showcase various designs, from prefab shops pushing out custom projects to recycled shipping containers being repurposed in accordance with the sustainable mantra of "reuse, reduce, recycle." This phenomenon allows environmentally conscious home buyers to envision living simply and off-grid. Additionally, construction video games like The Sims "eco lifestyle" offer striking shipping container designs within entertaining gameplay, merging ecological awareness with innovative architecture.

Despite its appeal, shipping container construction raises some critical questions. We will address these key points throughout this article:

• Is it cheaper to build a house or a container home?
• Are container homes safe?
• What are the pros and cons of building a shipping container home?
• How long do container homes last?
• How might you incorporate shipping containers and prefab into your builds?

Is It Cheaper to Build a House or a Container Home?

The pressing question: Are container homes cheaper than traditional houses?

At first glance, yes. However, various factors may lead to the price of a container home being comparable to or even exceeding that of a traditional house.

For reference, Forbes estimates the average cost to build a house at around $300,000, excluding the land cost. Similarly, Realtor quotes $296,652, while Rocket Mortgage estimates $290,314, with the national average for the lowest being $15,000 and the high reaching $750,000 (according to Home Advisor via Rocket Mortgage).

So, how much do shipping container homes actually cost?

A used or recycled shipping container typically costs between $1,500 and $5,000 on average. However, this price can vary widely depending on various factors, such as geographical location, condition of the container, size requirements, modifications needed, and delivery costs.

When compared to traditional houses, the finished shipping container homes can be significantly cheaper, usually falling between $10,000 and $35,000, which is a stark contrast to the average $300,000 for a traditional home. Yet, many factors can inflate the budget for a container house, such as modifications and the structural engineering needed to ensure a highly modified container home remains structurally sound.

Are Container Homes Safe?

From a structural perspective, shipping containers (in their original form) are made from robust industrial materials, making them quite durable and capable of withstanding harsh offshore weather conditions.

This durability changes once modifications, such as cutting holes for windows or doors, are made.

Another significant safety concern when using recycled shipping containers as building materials is the potential for previous exposure to toxic chemicals. To mitigate this risk, one can opt for a single-use shipping container, as this allows for greater assurance regarding its past use and cargo.

Pros and Cons of Building a Shipping Container Home

Building a container home solely from recycled shipping containers may prove to be more challenging than it initially appears. Even though these designs embody a spirit of sustainability, clients seeking this type of construction should consider various critical factors, such as how insulation in a shipping container often benefits more from less eco-friendly methods (like spray foam insulation) rather than greener alternatives like recycled cotton or wool insulation.

Additionally, other offsite construction methods, like modular construction, may better fulfill client needs with more customization options.

Pros of Shipping Container Homes

• Cost-Effective, to Some Extent: If you are building a relatively simple shipping container home, the overall cost will generally be much lower than constructing a traditional home from the ground up. Previously, we discussed sourcing a pre-used shipping container for about $3,250 on average, along with the estimated land cost of approximately $3,160 per acre (per USDA data). However, it’s crucial to note that numerous variables may lead to soaring initial prices, which we will further assess in the cons section below. Opting for a prefab shipping container home offers clients predictable costs, in-factory quality control, and more efficient delivery and site preparation.
• Faster Build Times: Much like prefabricated construction, creating a home using shipping containers can take only days for modest designs or months for more intricate structures—still a fraction of the time required for traditional building methods. It’s essential to keep in mind that collaborating with a prefab shop rather than sourcing pre-used shipping containers may not align with the “reuse, reduce, recycle” mentality but can help resolve some challenges associated with container homes, such as health risks and quality assurance issues.

Cons of Shipping Container Homes

Belinda Carr, a YouTuber, architect, and building scientist, addresses the main issues of constructing homes using shipping containers in her video titled "7 Reasons Why Shipping Container Homes Are a SCAM."

• Size Constraints: Standard shipping containers come in two sizes—20 ft long, 8 ft wide, and 8.5 ft tall for smaller containers; 40 ft long, 8 ft wide, and 8.5 ft tall for larger ones. While custom orders for taller containers (9.5 ft) are available, necessary modifications to create a livable space (insulation, mechanical systems, plumbing, electrical systems, and flooring) can drastically reduce the available living space.
• Possible Structural Issues: Though shipping containers are structurally sound when intact, making alterations for doors, windows, and other features can compromise their strength. Clients should be informed that they will need to reinforce containers with metal or wood and that installing traditional drywall can encroach upon their total living area.
• Expensive Reinforcements for Cantilevers: Innovative shipping container designs that combine multiple containers for optimal space often come with significant reinforcement costs, primarily due to the need for steel beams. Clients should understand the restrictions regarding space and architectural customization available with container builds.
• Thermal Conductivity of Steel: As noted by Carr, steel is not an efficient insulator, so when using corrugated shipping containers, it's advisable to insulate the exterior and install cladding to prevent issues like mold and rot.
• Health Risks from Old Shipping Containers: If choosing pre-used containers, tracing their history can be challenging, leaving uncertainty about any toxic substances transported. Certain states, like California, only permit one-use containers for residential purposes to verify their history. The heavy-duty paint on shipping containers, intended to endure harsh ocean conditions, may contain harmful substances like phosphorus and chromium.
• Transport Costs: Transporting containers, depending on location, may not be practical, especially when constructing with local materials is the most eco-friendly approach.

How Long Do Container Homes Last?

According to All States Containers, a container's average lifespan is about 25 years with minimal maintenance.

The primary factor affecting the durability of a shipping container home is rust. This issue can be mitigated by adding external cladding, which also serves to insulate and combat mold growth.

Ultimately, the materials used for construction influence the longevity of the home. Regular maintenance is essential, regardless of whether traditional materials or shipping containers are utilized.

Which States Allow Shipping Container Homes?

While all states technically permit shipping container homes, checking your local zoning regulations is crucial for compliance.

California permits shipping containers as building materials but mandates that only single-use containers be utilized.

Besides California, states such as Texas, Tennessee, Louisiana, Missouri, Oregon, and Alaska have more flexible regulations concerning container homes. For a complete overview, YoungAlfred.com provides a list of states with "more lenient" zoning laws and "non-restrictive" building codes.

How Can Shipping Containers and Prefab Be Used in Your Projects?

It may be most practical to use recycled shipping containers in coastal regions near port cities, where their availability is higher. They can also be beneficial in areas facing material shortages or recovering from natural disasters.

Utilizing prefab—or better yet, modular prefab—offers significant positive outcomes for your projects, enhancing sustainability.

Additionally, compelling case studies for using this construction material can be found in the Hulu series "Impossible Builds," where engineered kit houses are delivered to challenging sites, like mountainous regions with severe weather and limited building periods.

Bottom Line: Do Shipping Containers Make Good Houses?

Are container homes worth the investment?

Absolutely!

As with any home, the effort and resources you invest will reflect in your outcome. Homebuyers seeking a cost-effective solution can achieve their goals by building a modest container home, potentially in the form of a tiny home. Modifications will drive costs up, but if designed thoughtfully, the container can be made livable and structurally sound.

Shipping container homes present a unique architectural trend, inspiring designers, engineers, and builders to integrate diverse materials in creating innovative, thought-provoking projects.

Cost of Building a Shipping Container Home