Pros And Cons of Shipping Container Homes

29 Apr.,2024

 

Pros And Cons of Shipping Container Homes

Pros And Cons of Shipping Container Homes

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.

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 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.

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*:

*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 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.

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.

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.

Shipping Container Homes Explored: ONE-KEY™ Blog

The use of shipping containers in home design and construction has been on an upswing. A report estimates the global market size for shipping container construction will reach $73,070.5 million by 2025, up from $44,788.6 million in 2017. That’s a compound annual growth rate (CAGR) of 6.5% from 2018 to 2025.

Not too shabby.

This surge of shipping container architecture is well documented in the public eye.

Among countless construction-related TV shows, and YouTube videos on the subject, we’ve seen everything from prefab shops pushing out custom designs to pre-used shipping containers finding a new purpose—in keeping with the “reuse, reduce, recycle” sustainable construction mantra. Through these stories, we can live vicariously as environmentally conscious home buyers with the means and determination live simply and off-grid. We can even turn to some of the best construction video games, like The Sims “eco lifestyle,” to find striking shipping container designs amid entertaining, hands-on gameplay, and simultaneously meld environmental perseverance with inspired architectural eclecticism.

Despite being quite compelling in theory, in practice shipping container construction raises some important questions. We will answer each of these important questions throughout this article:

If you want to learn more, please visit our website Hongyu Dinghao.

  • 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

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The question on everyone’s mind: Are container homes cheaper than traditional houses?

At face value, yes. But there are plenty of factors that could drive the price of a container house to be similarly priced with a traditional house, and in some cases even more.

For reference, Forbes estimates the average cost to build a house to be $300k, excluding the cost of land. Similarly, Realtor quotes $296,652, and Rocket Mortgage quotes $290,314 with the national average for the absolute lowest being $15k and the high being $750k per Home Advisor (via Rocket Mortgage).

So, how much do shipping container homes cost?

Purchasing a used or recycled shipping container will set you back around $1,500-$5,000 on average, though the cost of a container may widely vary depending on your geographical location, the condition of the container, size requirements, modifications, and delivery cost.

By contrast to traditional houses, completed shipping container homes cost far less than a traditional home, typically ranging between $10k and $35k, and a far cry from the average $300k of building a traditional home; however, there are many factors that could lead container house to a ballooning budget and the dreaded cost overrun, such as modifications and structural engineering necessary to make a highly modified container home structurally sound (and we’ll discuss this a bit later).  

On the other hand, an even more cost-effective solution may soon be a 3D-printed home.

Are Container Homes Safe

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From a structural standpoint, shipping containers (in their existing state) are made from strong industrial materials, making them very strong and able to withstand harsh offshore weather conditions.

This, of course, changes when you start cutting holes in them.

However, the more pressing safety issue that presents itself with using recycled shipping containers as building materials is the very real possibility they’ve transported toxic chemicals in their former life. To avert this unknown entirely, you can opt to purchase a single-use shipping container; that way, you’ll be able to more precisely verify where the shipping container has been, and what it’s transported.

Pros and Cons of 

Building a Shipping Container Home

 

Building a container home purely out of recycled shipping containers may be more of an uphill battle than what meets the eye. Despite having the mystique of sustainability, clients seeking this kind of build may be unaware of certain illuminating factors, like how insulating a shipping container will typically be more effective when using a less eco-friendly method such as spray foam over more sustainable options like recycled cotton or wool insulation.

It’s worth noting that other offsite construction methods like modular construction may deliver on client needs with a greater degree of customization.

Pros of Shipping Container Homes

  • Cost-Effective, to a degree: Provided that you are building a relatively simple shipping container home, the cost will be generally much lower than building a traditional home from the ground up. As we discussed previously, you can, on average, source a pre-used shipping container for around $3,250. Adding the cost of land, say $3,160 for an acre (reported in the United States Department of Agriculture August 2019 report), and labor costs and architectural drawings, that’s still a far cry from the above-mentioned $300k. However, it’s important to note there are many variables that may drive this initial price through the roof (which we’ll discuss more in the below “cons” section). Going with a prefab shipping container home over a recycled shipping container home can offer clients additional benefits of what you would expect with prefab: predictable costs, in-factory installation (quality control), onsite delivery and preparation, etc.
  • Faster build times: Similar to prefabricated construction, building a house with a shipping container can take as few as a couple days to construct modest designs or months to piece together more intricate builds, still a far cry from doing it the old fashioned way. An important thing to keep in mind: Working with a prefab shop versus sourcing perused shipping containers, while not necessarily in line with that “reuse, reduce, recycle” mentality in a literal sense of giving a windswept shipping container a new life, can help solve some of the issues we’ll discuss below that shipping containers pose, such as health risks and QA concerns.

Cons of Shipping Container Homes 

 

Belinda Carr, a YouTuber, architect, and building scientist, outlines in her video titled “7 reasons why shipping container homes are a SCAM” the general problems with creating a home out of a shipping container: 

  • Size constraints

    : Standard shipping containers come in two sizes. Smaller shipping containers measure 20 ft long, 8 ft wide, and 8.5 feet tall, while larger shipping containers measure 40 ft long, 8 ft wide, and 8.5 ft tall. While you 

    can

     custom order taller 9.5 ft tall shipping containers, Carr notes the modifications needed to make a shipping container livable significantly cut into the living space available in what’s already so narrow and awkward: adding insulation, mechanical systems, plumbing, electrical systems, sprinklers, and flooring.

     

  • Possible structural problems: Shipping containers are structurally sound in their existing state. But when cuts are made—to add doors, windows, roof openings and skylights, large hollows to conjoin multiple containers, etc.—the original strength of the shipping container becomes compromised. Clients seeking a container build, thus, should be made aware that reinforcements with metal or wood will need to be made, and necessary framing with traditional drywall will significantly cut into the overall living space.
  • Expensive reinforcements if adding cantilevers: The most inspired of shipping container architecture solves the inherent size constraints of building with these narrow modules by bridging multiple shipping containers together in unique configurations that maximize space and adding balconies and wrap-around porches that seamlessly blend indoor and outdoor living. While certainly inspiring, accomplishing these novel architectural feats naturally come with expensive steel reinforcing beams. Prospective clients selecting shipping containers purely as an “affordable alternative” to traditional building should thus be made aware of the limited space and architectural customization of a shipping container build.
  • Thermal conductivity of steel: As Carr notes, steel is not a good insulator, thus when using corrugated metal shipping containers as your primary structure, you’ll likely want to insulate the outside of the shipping container and add cladding to avoid mold and rot.
  • Health risks with buying old shipping containers: If you’re buying a pre-used shipping container for your build, tracking down where it’s been may be a challenge, and you won’t necessarily know if it was used to carry general consumer goods or toxic chemicals that could cause a health risk. Carr notes that some states like California only allow one-use containers for residential reuse, so you can verify what has been transported in the shipping container. Heavy duty paints on the exterior of the shipping container, she adds, which are added to withstand harsh ocean conditions, contain carcinogenic elements like phosphorus and chromium.
  • Cost to transport, depending on the location, may not be logical, especially considering that building with native materials is “the most eco-friendly and cost-effective method.”

How Long Do Container Homes Last

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According to All States Containers, the average life of a container is 25 years with minimal maintenance.

The main problem impacting the longevity of a shipping container home is rust. This could be addressed by adding external cladding, which as discussed above, can also help to insulate and protect against mold.

While the materials used to build a house ultimately help to impact its overall longevity—just as the legendary fable taught us that brick withstands wilder external forces than straw—user input is also important and maintaining a home, regardless of whether it’s made with traditional materials or shipping containers, will require a certain degree of continuous maintenance.

Which States Allow Shipping Container Homes

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All states technically allow shipping container homes. You’ll want to see your state and specific area zoning requirements with regard to building a shipping container home to ensure compliance.

California, for example as previously discussed, allows the use of shipping containers as a building material, but they stipulate ONLY single-use containers to be used.

Beside California, Texas, Tennessee, Louisiana, Missouri, Oregon, and Alaska are among the states that have a more lenient stance toward container homes. For a more complete list, YoungAlfred.com notes the states with “more lenient” zoning laws or “non-restrictive” building codes.

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

Despite being relatively easy to transport by trailer bed, Belinda Carr notes that it might make the most sense to use recycled shipping containers “in coastal regions near port cities where shipping containers are readily available.” They may similarly be useful in areas where material shortages are common, or areas that are recovering from a natural disaster.

Working with prefab, or even better modular prefab, may drive the kind of outcomes your clients are looking for and provide even better sustainability outcomes.

Additionally compelling applications for this type of construction material may be explored on Hulu with Impossible Builds, where engineered “kit” houses are delivered to particularly challenging sites, like mountainous regions with harsh storms and intermittent, quickly waning opportunities to build.

Bottom Line:

Do Shipping Containers Make Good Houses

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Are container homes worth it?

Of course!

As with any home, what you put into it is what you’ll get out of it. If homebuyers are simply after a more cost-effective solution, they can potentially achieve these ends through building a modest container home, quite possibly a “tiny home.” Additional modifications can drive the price to make the container livable and, if intricately designed, structurally sound.

Surely, container homes represent a unique architecture trend that will continue to inspire designers, engineers, and builders to incorporate various materials to design the most innovative and thought-provoking of projects.

For more information, please visit Engineering Container House.