Thursday, February 29, 2024
HomeBarndominiumDo Barndominiums Depreciate in value?

Do Barndominiums Depreciate in value?

Do Barndominiums Depreciate? Examining Resale Value potential obviously, everything depreciates to some degree your never gonna have a brand new home after it’s been live in for a period of time. This is not always a bad thing because as we have all witnessed thru the pandemic, homes can fluctuate wildly in price in a relatively short amount of time given slightly extraordinary circumstances.

white barndominium shophouse

As the barndominium movement continues building steam & converts drawn to the style’s rustic aesthetic and value pricing, inevitable doubts arise around long-term value retention. The uniqueness prompting many to take the barndo plunge also fuels fears that these re-imagined agricultural buildings will rapidly depreciate or prove difficult to sell. However, analysis of resale data as well as expert insights strongly indicate barndominiums in desired locations actually maintain value on par with traditional homes.

black barndominium with wraparound porch and 3 car garage

Looking first at resales, a 2020 survey of Texas barndominium listings found 87 percent had sold for the same or higher price than their original list price. The structure type made no statistically significant impact on value changes compared to standard homes. For example, a 1,600 square foot barndominium in Winnsboro originally purchased in 2016 for $170,000 was recently relisted for $250,000. A more modest 800 square foot example in Argyle endured five years surprisingly little depreciation, purchased in 2014 for $237,000 and hitting the market again in 2019 for $219,000.

white farmhouse

Industry experts reinforce that properly constructed barndominiums should retain value just like conventional homes, presuming sensible initial spend. As Tim Biery of Barndominium Store LLC confirms, “If you overbuild or have too much into a metal home compared to the market, you may be at some risk…But the same goes for stick-built or any home.” In other words, the risk lies in overspending, not in the barndominium type itself.

In fact, certain barndominium characteristics provide value stability advantages. Namely their economical price point for ample interior square footage. Additionally, value is supported by many barndo shoppers’ preferences for rural properties seeing climbing demand, where re-sale supply limitations further strengthen pricing leverage. Bara Oswald of TexasBarndominiumRealty.com observes, “There is such a demand for this lifestyle and the number of barndos available is not keeping up.” The customizability of floorplans also assist owners in aligning with local buyer needs upon resale.

black barndominium farmhouse with wraparound porch

So while no housing type guarantees future returns, county appraisal data and expert insights confirm properly budgeted barndominiums in well-selected rural locales do retain value on par with sticks-and-bricks homes. As Oswald summarizes, “Buyers want unique properties with space. Barndos will continue appreciating.” So rather than needlessly fearing rapid depreciation, barndominium shoppers can pursue this on-trend sector knowing their investment will likely endure for the long haul.

Aaron Scott
Aaron Scott
Aaron Scott is a freelance writer and researcher that has written hundreds of articles for online companies in the area of construction, design, finance and automotive. He's a Southern boy that enjoys creek fishing, hunting and camping. He's rarely seen without his trusted beagle hound "Scooter"
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