Container Home vs. Traditional Home: Which is the Better Investment?

January, 30

So, you've finally built up your savings, and you're ready to buy a home. The question is, should you buy a traditional block with land or purchase a container home for an off-the-grid endeavour? Both have their pros and cons, but the deciding factor depends on what you're looking for.

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This article will be your comprehensive guide to container homes and traditional homes, how they are different, and how to figure out what's the best investment for you.

Traditional and Container Homes: What Are Their Characteristics?

Conventional Architectural Style

Traditional homes come in a range of designs, such as Victorian-style homes from historical periods or modern suburban designs, which have been popular over the decades. Traditional homes have arched doorways, gabled or hipped roofs, or details such as half-timbered exteriors.

Shipping container homes, on the other hand, cannot replicate the look of an old-fashioned home. They embrace a minimalist design and are modular shapes from repurposed shipping containers with flat roofs for solar panels or gardens.

Traditional Building Materials

Traditional homes are built from concrete, brick, timber, stone, and roofing made with tiles, shingles, slate or steel, whereas a shipping container is a structurally built box that can be used as part of a home.

Container homes are mostly made from steel shipping containers, have energy-efficient insulation, and have exteriors that can be customised with wood panelling, cladding, or paint. They don't crack or drop at the ends when the foundation is moved, and if maintained correctly, they could outlive conventional homes.

Typical Space Allocation and Layouts

Traditional homes have an interior layout with more formal living space, central hallways, and cabinetry, so there's a larger area if you want to renovate.

On the opposite end of the spectrum, shipping container homes can create an open-concept feel within a compact space and offer flexible considerations. Shipping container homes could also be a great way to extend the space in your current homes

Cost Comparison

With any home, the cost is often the first thing you want to know! So, let's take a look at how both can impact your budget.

Initial Investment Costs

Depending on the size and  the customisation, Sonic Steel container homes start from 90k for a 20ft container and 130k for a 40ft, which is cheaper than putting a deposit on a traditional home in your area. Even if you decide to add features such as plumbing, insulation, or heating and cooling, a fully outfitted shipping container is more affordable for the long term.

As for a traditional home, they require a higher investment (even with the assistance of a First Home Owner’s Grant). The cost of land, materials, labour, and permits can quickly add up, with the average cost being at least $500,000, and this price increases near the city.

Long-term Savings Potential

Investing in a shipping container home means you won't be paying a mortgage for 30 years; the entire tiny home can be paid off a lot quicker.Tiny homes are designed with eco-friendly materials and features such as solar panels, rainwater harvesting systems, and insulation. For example, let’s take a look at Sonic Steel’s insulation systems:

Block-moulded polyurethane panels are manufactured in Australia using a block-moulding method. They are precisely CNC-cut to fit into the corrugations of the container panels, forming a strong barrier that eliminates air gaps and helps maintain a consistent indoor temperature and to eliminate the risk of condensation.

Underfloor insulation. Polyester insulation is installed under the floor. The whole underside is then closed off by galvanised metal sheets to keep the polyester in place and maximise your home’s thermal efficiency. It works as a pest and termite deterrent and helps protect against bushfire attacks. (which is one of the requirements for high BAL ratings)

• High-performance window system. These Australian-made windows are created using double-glazed units with low-e coating as well as a thermally-broken frame by ThermalHEART. 

Think about it: your family member or friend can live on your property in a tiny home instead of a stressful rental, or you can buy land and put a container home on it. Whatever you decide, a container home gives you the freedom to make better financial choices.

Hidden Costs of Traditional Ownership

If you've wanted to buy a property, the traditional home route has many costs involved (and sometimes unexpected), especially if your goal is to build instead of buy.

You might be dealing with property taxes, higher utility bills, and ongoing maintenance such as roof repairs, plumbing problems, and landscaping, whereas a container home doesn't require consistent upkeep as much.

Tiny homes often have lower property taxes due to their smaller size, however, you should always be aware of potential zoning restrictions, building code requirements, construction costs, and the need for specialised contractors. Think about what works best with your financial goals and lifestyle needs.

Eco-friendly Environment

Are you looking for a sustainable housing option to live in as an investor? A shipping container home creates a sealed environment with better climate control than traditional spaces. This minimises energy waste, keeping the interior temperature stable in summer and winter. And as a plus, sounds bounce off the steel exterior, giving you a quieter living space.

A container home is also a sustainable construction, as dozens of used shipping containers can be repurposed! All in all, you're reducing the impact of new building materials (timber, concrete, and brick) on traditional houses.

With a compact structure, this naturally cuts back the amount of energy needed for heating and cooling, so you don't need to worry about excess energy consumption.

Durability and Maintenance

There are many benefits of container homes, especially when it comes to their durability, maintenance, and repairs:

• Their builds can handle harsh weather conditions and are less susceptible to structural damage compared to traditional housing
• The steel exterior is resistant to pests such as termites and rodents
• They are corrosion-resistant
• Container homes generally have lower costs for minor fits; however, expanding on your tiny home requires a labourer with a specific skill set. As for a traditional home, there is a lot more flexibility for renovations and can generate a lot more cash if you're planning to sell up

Design Flexibility

Let's take a look at some of the amazing designs at Sonic Steel!

Mark II

The one-bedroom–or site office– Mark II offers a compact lifestyle where every space is essential and efficiently designed. Whether used as an office or self-sufficient living space, the fully functional 20ft is not limited by its size. 

Suitable for a backyard office or a granny flat, this could be a cost-effective option if you’re seeking to maximise land use.

Mark IV

With a double bedroom, full kitchen and a lounge, the Mark IV offers all the utilities you would need in this home. Packed with Sonic Steel’s VenSulation system and underfloor insulation, Velux skylight, double-glazed, low-e, and thermally broken windows and doors frame, we make sure that your comfort is our priority. 

The open bathroom layout with the Pan Fan system can ensure a smell-free toilet and a fresh space between your bedroom and kitchen

Mark VI

Do you want an off-grid container home that ticks all the boxes of superior insulation, proper ventilation, premium finish and practical design? 

Look no further than the Mark VI, beautifully designed with a cutting-edge insulation system that ensures a healthy and comfortable home while eliminating condensation and mould. The practical layout features a double bedroom, a full kitchen with a breakfast bar, a spacious bathroom with laundry, a lounge area, and a utility compartment for tools and hobbies.

Regulatory and Zoning Challenges

For shipping container homes, there are regulatory and zoning requirements depending on your local council, so always check in with them. Sonic Steel container homes comply as Class 1A buildings with the NCC and have gone through the the DA process in many states without issues. If you’re unsure, Sonic Steel can guide you!   

How do you know if shipping container houses are right for you?

If you've been keen on minimalist living or have always wanted to live off the grid, here are some questions to ask yourself:

• What is your budget? There are affordable, small living spaces, but you can also spend a bit more money on a more customised, larger container home.
• What are your lifestyle needs? You may prefer a lot more space if you have a larger family.
• What are your long-term goals? Do you want to live in it for a long time or temporarily rent the space out?

To learn more about relocatable container homes, read about the pros and cons of living in a shipping container home!

Container Homes in Australia: Choose Sonic Steel!

If you're hoping to try a different route in the housing market, Sonic Steel can help you make an informed decision. As a leading business in the shipping container industry for nearly a decade, Sonic Steel began as a repair and maintenance service provider before expanding into modifications and, ultimately, the construction of unique and functional shipping container homes.

It doesn’t matter if you want to build a shipping container home in Victoria, NSW, SA, or anywhere in Australia, Sonic Steel aims to bring your vision to life with a personalised design and living space. From energy-efficient systems to proper ventilation and easing the construction process, we can put up a container home design you’ll love.

Start your journey today by reaching out to our friendly team at 03 . We are committed to providing you with a transparent, honest service not only for the duration of projects, but also the final installation.

You can also contact us by emailing or visit us in Brooklyn, Victoria (by appointment only).

Pros And Cons of Shipping Container Homes

Post updated on Sept 5,

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.

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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.

Pros of Shipping Container Homes

1. Durability and Strength

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.

2. Fast Construction

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.

3. Mobility

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.

4. Lower Cost to Build

According to Altus Group’s 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.

How much does it cost to buy a new shipping container?

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*:

• Lower Mainland, BC: $3,995
• Kelowna, BC: $4,095
• Calgary, AB: $3,995
• Regina, SK: $4,745
• Winnipeg, MB: $4,895
• Ottawa, ON: $4,195
• Mississauga, ON: $3,145

*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.

5. Unique Designs

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.

Cons of Building a Shipping Container Home

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.

1. Limited Supply

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 , 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.

2. Limited Space

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.

3. High Temperatures

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.

4. Possible Health Hazards

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.

5. Zoning and Permits

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.

6. Construction Challenges

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.

Where to Find Shipping Containers to Convert into Homes

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.

If you want to learn more, please visit our website custom container house.