Many people find building a house daunting, particularly because of the potential costs. However, constructing a home doesn’t have to break the bank. With careful planning, smart material choices, and practical designs, building a cost-effective home can become a reality.
If you’re asking, “What is the cheapest type of house to build?” This guide will walk you through the options, offering tips on affordable housing designs, materials, and construction techniques that can significantly reduce your costs.
Let’s get straight to the point.
Building a house doesn’t have to be expensive. You can significantly reduce construction costs by choosing cost-effective designs like tiny houses, modular homes, shipping container homes, or earthbag and cob houses. House size, simple designs, and affordable materials like concrete or reclaimed wood help control expenses.
Additionally, strategies like DIY work, using recycled materials and selecting local materials further minimise costs. With careful planning and smart choices, building a home on a tight budget is achievable.
Affordable Types Of Houses
Various factors, including design, materials, and construction techniques, come into play when considering affordable house construction. Here are the most economical house types to consider.
1. Tiny Houses
One of the most affordable house types is the tiny house. Tiny homes are typically less than 50 square meters and are designed to maximise space efficiently. By significantly reducing square footage, tiny homes require fewer building materials and less labour, saving considerable costs.
Tiny houses are popular for their affordability, low environmental impact, and minimal maintenance costs. Building a smaller home means less heating, cooling, and overall energy usage, translating to long-term savings on utilities. Many tiny homes are built on trailers, eliminating the need for a foundation and reducing costs.
2. Modular Homes
Modular homes are another budget-friendly option. They are prefabricated in a factory and assembled on-site, drastically reducing construction time and labour costs. Due to their precision construction, modular homes are typically more energy-efficient than traditional homes, and they can be customised to suit your specific needs.
Since the assembly of a modular home takes place in a controlled environment, the risk of construction delays is minimised, saving you money in the long run. Additionally, because materials are purchased in bulk and waste is kept to a minimum, modular homes often come at a lower price than conventional builds.
3. Shipping Container Homes
Shipping container homes are a great option for those looking for an eco-friendly and cost-efficient housing solution. These homes are made from repurposed shipping containers, which are widely available and relatively inexpensive. Shipping containers are durable, weather-resistant, and easily modified to create comfortable living spaces.
Building with shipping containers can significantly lower costs, particularly if you’re willing to embrace a minimalist lifestyle.
4. Cob Houses
Cob houses are made from sand, clay, straw, and water, offering one of the cheapest ways to build a home. Cob construction has been used for centuries and is still popular in many parts of the world due to its low cost and environmental sustainability. The materials for a cob house are extremely cheap, especially if you source them locally.
While cob houses require more labour, they are highly energy-efficient and can last hundreds of years when maintained properly. The thick walls of a cob home provide excellent insulation, keeping the house cool in summer and warm in winter.
5. Earthbag Homes
An earthbag home is built using polypropylene bags filled with soil or other natural materials. These bags are stacked to form the home’s walls and then plastered for added durability. Earthbag homes are incredibly affordable due to the low cost of materials, particularly if you’re using the soil from your land.
Like cob houses, earthbag homes are highly energy-efficient and offer excellent thermal mass, meaning they can naturally regulate temperature. These homes are also very durable and can withstand extreme weather conditions, making them a great option for living in areas prone to natural disasters.
Key Factors That Affect House Building Costs
Several factors can impact the overall cost of building a house, regardless of the type. Understanding these factors can help you make informed decisions and keep your budget in check.
1. Size Of The Home
One of the most obvious factors that affect the cost of building a home is its size. A smaller home requires fewer materials, less labour, and shorter construction times, lowering costs. If you want to build a cheap home, focus on a smaller, functional design.
2. Simple Designs
Keeping the design simple can also significantly reduce costs. Elaborate designs with multiple levels, complex rooflines, or excessive details require more labour and materials, increasing the overall expense. A straightforward, rectangular design with a simple roof is one of the cheapest houses to build.
3. Materials
The choice of building materials has a direct impact on costs. While high-end materials like marble or hardwood floors will increase the price, using budget-friendly alternatives such as reclaimed wood or concrete can keep expenses down. Selecting locally sourced materials can also reduce transportation costs.
4. Labour Costs
Labour can be one of the most expensive aspects of building a house. Reducing labour costs by taking on some DIY tasks or choosing a construction method requiring less specialised labour, like modular or shipping container homes, can significantly affect the total cost.
5. Location
Where you build can greatly affect your overall costs. Land prices vary widely depending on the location, with rural areas generally being more affordable than urban centres. Additionally, local regulations and permit fees can add to the cost, so it’s important to research these factors before choosing a location.
Tips For Building A House On A Tight Budget
If you have a limited budget, there are several strategies for reducing building costs without compromising quality.
1. Build Small
The most effective way to reduce costs is to build a smaller house. A small home requires fewer materials, less labour, and less building time. Not only will this save you money during construction, but it will also reduce your long-term costs for maintenance, heating, and cooling.
2. Opt For Simple Designs
Choosing a simple design with minimal architectural features will help keep costs down. Complicated designs with multiple rooflines or custom windows are more expensive to build and maintain. Stick to basic shapes and straightforward layouts to save both time and money.
3. Use Recycled Or Reclaimed Materials
Using recycled or reclaimed materials is a great way to reduce costs and environmental impact. Reclaimed wood, bricks, and metal can often be sourced for free or at a reduced cost, significantly lowering material expenses. Inspect these materials for quality to ensure they stand the test of time.
4. DIY Where Possible
Taking on some of the work yourself is one of the most effective ways to save money. While you may only be able to handle some of the builds, there are plenty of tasks that you can do on your own, such as painting, landscaping, or even laying flooring. DIY labour can help you cut costs without sacrificing quality.
5. Source Local Materials
Buying local materials can save you a considerable amount on transportation costs. Local materials are often better suited to the climate and environment, which can improve the longevity and sustainability of your home.
6. Consider Prefabricated Or Kit Homes
Prefabricated or kit homes are a great way to save on labour and material costs. Since these homes are built in a factory and assembled on-site, you can avoid delays and extra expenses associated with traditional construction methods.
Conclusion
Consider tiny, container, or modular homes to build the cheapest house possible. These types of houses are not only affordable but also allow for a more sustainable and efficient use of materials and energy. By keeping the design simple, sourcing affordable materials, and taking on some DIY tasks, you can significantly reduce the cost of building your dream home. Whether you’re interested in a minimalist tiny house or a repurposed shipping container, careful planning and smart decision-making are the keys to saving money.
FAQs About Home Construction
Can A House Be Built In 5 Months?
The time it takes to construct a home can range from three to 18 months, depending on the project’s specifics. The amount of time it takes to finish building a house will vary depending on factors such as its location, the design and dimensions of the floor plan, the season, and even the region where the homeowner lives.
What Type Of Loan Is Best For Building A House?
A construction-to-permanent loan allows you to borrow money to build your home. Once the house is finished being built and you move in, the loan is converted into a permanent mortgage.
Why You Shouldn’t Buy A New Build?
In most cases, the price of a new construction will decrease after it has been purchased, much like the price of a car. This is because newly constructed homes typically come with a premium price tag unique to the surrounding area. As a result, these prices tend to decrease before they increase, which means it may take some time before you start seeing any equity in your property.
What Type Of House Is Cheapest To Build?
A home with a simple and concise layout is the cheapest house to build. Ranch homes are typically single-story structures with attached garages. They’re easy-to-find construction plans and highly customisable, so you can find a home that fits your needs and budget.
Can You Build A House With No Mortgage?
If you do not already have an approved mortgage but still want to hire a builder to construct your home, you will likely be required to provide evidence that you can pay for the entire process. A sizable down payment may be required before a builder agrees to start the project.
