How Much Does an Outbuilding Cost? [2025 Data]
The average outbuilding cost ranges from $13,000 to $33,000, with most homeowners paying an average of $10,000. Key factors include size, materials, labor, and customization.
Outbuilding cost depends on size, materials, and features.
Customization and utility hookups can increase the total price.
Permits and site prep are essential cost factors.
Outbuildings can act as storage areas, workspaces, or living spaces.
Professional installation ensures safety and code compliance.
This article was created using automation technology and thoroughly fact-checked and edited by an Angi Editor in accordance with our AI policy.
Outbuilding costs average $10,000, with most projects ranging from $13,000 to $33,000. Costs depend on the size, materials, and whether you select a prefabricated or custom-built. Expect to pay $20 to $150 per square foot, influenced by complexity and features.
For many homeowners, building an outbuilding means gaining needed space, storage, or a flexible work area. This guide will walk you through what to expect, how costs break down, and how to make the best choices for your property.
Outbuilding Cost Breakdown
Understanding outbuilding cost means looking at every stage of the project. Costs include materials, labor, permits, site preparation, and utility connections. In 2025, most homeowners will spend between $8,000 and $40,000 for an outbuilding, with prefabricated options on the lower end and custom designs on the higher end.
Prefabricated outbuildings are often less expensive up front since they’re mass-produced and quicker to assemble. Custom outbuildings allow for more tailored features but require more labor and higher-grade materials. Foundation type, insulation, finishes, and site conditions also play a big role in the final price. Sheds, garages, workshops, barns, and studios each have their own cost profiles based on use and complexity.
| Outbuilding Type | Description | Average Cost Range |
|---|---|---|
| Shed | Basic storage or garden shed | $8,000–$15,000 |
| Garage | One- or two-car detached garage | $15,000–$35,000 |
| Workshop | Space for hobbies or light work | $12,000–$30,000 |
| Barn | Larger structure for animals or equipment | $25,000–$40,000 |
| Studio | Insulated, finished space for living or work | $20,000–$40,000 |
Size of Outbuilding
The size of your outbuilding is one of the most significant cost drivers. Larger outbuildings require more materials and labor, which increases the total outbuilding cost. Common sizes range from compact 120-square-foot sheds to 1,000-square-foot barns or workshops.
Prefabricated outbuildings often cost $20 to $60 per square foot. Custom builds, with more robust construction and finishes, can run $70 to $150 per square foot or more. As square footage increases, expect costs for site prep, foundation, and interior finishes to rise as well.
| Size (Sq. Ft.) | Outbuilding Type | Description | Average Cost |
|---|---|---|---|
| 120 | Shed | Small storage or garden shed | $8,000–$10,000 |
| 400 | Garage | One-car garage or large workshop | $16,000–$28,000 |
| 600 | Studio | Finished space for office or guest use | $24,000–$38,000 |
| 1,000 | Barn | Large barn for equipment or livestock | $30,000–$40,000 |
Pro Costs
Several professionals contribute to outbuilding construction. General contractors manage the entire build, coordinate subcontractors, and ensure code compliance. Carpenters handle framing, siding, and finish work. Electricians install wiring, outlets, and lighting.
Labor rates vary by region and complexity. General contractors charge $50 to $150 per hour. Carpenters charge $40 to $100 per hour, while electricians range from $50 to $120 per hour. More complex projects or those requiring specialty skills—like intricate framing or advanced electrical—will cost more. For highly customized designs or unique features, hiring a specialist is essential to ensure quality and safety.
Additional Pros to Consider Hiring
Depending on your project’s needs, additional professionals may be required:
Plumber: Utility hookups or new plumbing lines cost $1,000 to $3,000.
HVAC technician: Installing climate control (mini-split, heater, AC) adds $2,000 to $6,000.
Roofing specialist: Advanced roofing materials or custom roofs cost $1,500 to $5,000 above standard rates.
Site surveyor: Land assessment and grading cost $500 to $1,200.
Cost by Location
Where you live significantly affects outbuilding costs. Urban areas and regions with higher labor or material costs will see increased prices. Rural locations may offer some savings, but accessibility and transportation can add expenses.
Northern states with heavy snow loads may require stronger, more expensive structures. Coastal or hurricane-prone regions often need reinforced materials and foundations.
| Region/State | Description | Average Cost |
|---|---|---|
| Northeast | Higher labor/material costs, cold climate | $22,000–$40,000 |
| Midwest | Moderate costs, some snow load | $16,000–$32,000 |
| South | Lower labor costs, mild winters | $12,000–$28,000 |
| West | High demand, seismic/hurricane codes | $20,000–$40,000 |
Additional Cost Factors
Several additional expenses can impact the total outbuilding cost. Taxes and insurance may rise with a new structure. Some materials and contractors offer warranties, which can provide peace of mind but may cost extra. Accessories like upgraded windows, doors, lofts, or built-in shelving will increase your budget.
If you need ADA features or accessibility upgrades, plan for added expense. Challenging site access—such as steep slopes or heavily wooded lots—raises costs for equipment and labor. Don’t forget repairs or cleanup after construction, especially if heavy machinery is used.
Demolition and Prep
If you’re replacing an old structure, demolition and site prep are the first steps. Demolition costs $500 to $3,000, depending on size and materials. Site clearing, grading, and foundation prep range from $1,000 to $5,000. Disposal fees for debris can add $200 to $800. Sloped, rocky, or wooded sites require more labor and equipment, increasing costs.
Permits
Permits are required for most outbuilding projects. You’ll need zoning, building, electrical, and sometimes plumbing permits. Contractors often handle permits, but homeowners are ultimately responsible for ensuring compliance.
Permit costs vary by location and project scope, ranging from $200 to $2,000. The process can take one to six weeks, depending on local regulations. Always secure permits before construction to avoid fines or project delays.
DIY Outbuilding Cost vs. Hiring a Pro
Building an outbuilding yourself can save on labor, but it requires the right tools, skills, and plenty of time. DIY projects often cost 20% to 40% less than pro-built structures, primarily by eliminating labor charges. Material costs remain similar, but DIYers may pay retail prices and need to rent or buy equipment.
While DIY can be rewarding, it’s a major commitment. Structural integrity, code compliance, and safety are critical—mistakes can be costly to fix. For complex projects or those involving utilities, we recommend hiring a shed construction professional in your area. Smaller, simple sheds or storage buildings are more manageable for experienced DIYers.
Outbuilding Remodel vs. Renovate
Remodeling and renovating an outbuilding are not the same. Renovation focuses on restoring or updating—think repairing siding, replacing a roof, repainting, or updating doors and windows. Remodeling changes function or layout, such as converting a shed to a studio, adding insulation, or installing new utilities.
Renovations tend to cost less, often in the $2,000 to $15,000 range, while remodels can range from $10,000 to $30,000 or more, depending on complexity. Consider the structure’s lifespan, extent of damage, and whether repairs exceed 50% of replacement cost. Remodeling can significantly boost usability and property value, especially when upgrading to meet code or adding new features.
Tips to Reduce Cost While Building an Outbuilding
Save money on your outbuilding project by choosing prefabricated kits, limiting complexity, sourcing materials strategically, and tackling simple tasks yourself. Here are more ways to save when building an outbuilding.
Choose prefabricated kits over custom builds.
Limit size and complexity to essential needs.
Source materials locally or during sales.
Handle site prep or finishing work yourself if skilled.
Reuse or repurpose materials where possible.
Get multiple quotes from pros.
Plan for future upgrades instead of all-at-once features.
Does Outbuilding Cost Increase Home Value?
Adding an outbuilding can enhance property value and functionality. Garages, studios, and well-built sheds often have a return on investment between 50% and 80%, especially with quality construction and permits. While ROI varies, outbuildings add appeal for buyers seeking storage, workspace, or flexible living areas.
Value increases most when structures include utilities and have a finished appearance. Local demand, zoning, and market trends also play a role. A safe, code-compliant outbuilding improves efficiency and boosts curb appeal, making your home stand out.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
