Shipping Container Home Guide: Pros, Cons & Expert Tips | Field Mag

Once a fringe concept, shipping container homes have solidified their place of interest in the mainstream for being durable, versatile, and aesthetically-interesting shelters for seasonal and full-time living.

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No longer just for transporting goods from port to port, shipping containers—also called intermodal containers and high cube containers—can be successfully converted into everything from tiny homes and cozy cabins to multi-level compounds.

Interested in the possibilities and realities of container home living? This deep dive guide is for container-curious folks who want to know more about living life inside the box. In this expert-driven article, we share everything you need to know about custom container living, including pro tips on buying shipping containers and how to save some cash during your build process. So read on and dig in!

What Is a Shipping Container Home?

First things first, a container home is a small living space converted from one or more, new or repurposed shipping containers into a custom modern home. Since a standard high cube shipping container is typically 20 feet by 8 feet or 40 feet by 8 feet, shipping container homes have a minimum 160 or 320 square foot floor plan to work with, though depending on how many you stack together you can achieve considerable square footage quite easily.

Unlike traditional housing and other types of popular alternative living spaces like prefab or tiny houses, container dwellings have the added benefit of being easily scalable. And of course, the industrial aesthetic is truly unique, especially when set in a natural setting.

Advantages of a Shipping Container Home

Built of durable, weather-resistant steel that’s made to take a beating during international travel, shipping containers are designed purely for function. As mentioned, modularity allows you to stack more than one high cube container to create a larger floor plan and overall living space within the scope of a larger container home design. Containers also have standard dimensions, which can make designing a home more straightforward.

Another advantage is price (more on this below). Shipping containers are relatively inexpensive with an average price of between $1,500 and $5,000 depending on size and whether it's new or used, making them much cheaper to build with than lumber and other building materials for a traditional house. A recycled shipping container is also an eco-friendly option because it utilizes existing materials rather than new.

Pro tip: aim to buy your container(s) in November or December, says Devon Loerop, owner and builder of The Pacific Bin, which in just one year has become the most followed home on Instagram. During the holidays there is usually a surplus of containers in North America, making it easier to find a deal and save money when buying used containers.

In the same vein as the increasingly popular Accessory Dwelling Unit (ADU), building a shipping container house is another way to utilize alternative methods to create more livable space—be it a guest house, vacation home, or even a workspace. By design, container homes are a fairly low maintenance and even transportable home that can be a great investment for the DIY-minded homeowner.

Disadvantages of Building a Container Home

Like any dwelling, there are pros and cons here too, whether you’re building and buying. One of the main disadvantages of shipping container homes is insulation and temperature control. Steel is an excellent conductor of heat, which means that without proper foam insulation, shipping container homes can become very hot in the summer and very cold in the winter. Insulating a shipping container effectively can be a challenge, and it often requires adding insulation to both the interior and exterior, which can increase construction costs and reduce interior space. More on this further below.

Another common disadvantage of building with shipping containers is navigating building code and zoning challenges. Depending on your location, there may be strict building codes and zoning regulations that govern the use of shipping containers as homes—or even disallow them. In many instances building regulations have been established decades before the advent of innovative building practices like prefabrication, so it's not uncommon to find local regulations (and town committees, code enforcers, and building permit issuers) to be rather outdated and uncompromising. As such, obtaining the necessary permits and approvals can be a complex and time-consuming process—you may need to seek a number of variances in order to be granted a certificate of occupancy (CO).

For these same reasons, finding home insurance and/or construction loans by conventional banks may be tough for shipping container home owners and builders, too. Or it all can be super simple. It all depends on where you want to build.

In terms of design limitations, you can stack multiple shipping containers to create a house, but the containers themselves are not endlessly customizable. Picking your living room, sleeping quarters, door locations, etc is easy, but unfortunately heavy modification can reduce the structural integrity of a container, so keep in mind you will have limited layout options when designing your dream container home.

Container Home Building Logistics

Prefab vs DIY

From turnkey properties to customized builds, shipping container homes come in all shapes and sizes. There isn't just one way to convert these steel cubes into an inviting space—there are two: purchase a prefab container home or DIY.

A prefabricated (prefab) container house is built off-site by a qualified manufacturer and arrives ready-made. The obvious benefit is owning an almost move-in ready home (you'll still have to take care of the land, foundation, and connect utilities) which eliminates nearly all of the heavy lifting and construction.

The major downside to this is having less freedom to choose key design elements such as the floor plan, fixtures, and finishings. However, the trade-off is a professionally built habitable structure. And it's worth mentioning that some prefab container home manufacturers can also assist buyers with the finer points of the area's building codes, zoning laws, and permit requirements, which may be factor into your final decision.

The DIY route is the only way to get everything on your list and have complete control in the building and design process. But this also puts all of the responsibility on the homeowner turned builder, designer, and project manager. Researching floor plans, sourcing and installing all of the materials, and selecting every last detail of the home down to the "studs" takes time. And be prepared to hire professionals for specialized jobs like structural reinforcements, plumbing, and electricity.

What to Know About Stacking Containers

Shipping containers are designed to stack corner to corner, like you see on ships and in ports. If you want to stack containers in an unconventional way, or cut out big windows and doorways, it's important to note additional budget and work will be required. “If you're building a one-story container home, it's really a breeze. But the second you go up a floor, just know there's going be a lot of added costs and added structural reinforcement needed, especially if you're stacking in the non-conventional way,” explains Washington State-based builder Devon Loerop.

“When you turn containers 90 degrees and they're not stacked on the corners, and that's when you have to look at some serious structural reinforcement. It makes for a really cool design, but it's going be a bit of a headache. So you really want to do your due diligence and dive into understanding structural steel, what it's going to take to make your home 100% rock solid, and how that is going to affect the inside of your design.”

Want to build your own Pacific Bin? Loerop sells complete construction plans. Use code "FM20" to save 20% off.

Insulating Your Container Home

Metal is inherently a bad insulator so condensation is quick to form when it’s hot inside and cold outside or vice versa. For this reason, closed cell foam should be used for shipping container homes because it acts as vapor barrier as well as an insulator. If traditional insulation is used moisture in the form of condensation can cause corrosion, mold, and mildew to build up over time, which can be hazardous and dangerous.

Now, closed cell foam can be expensive, especially if you have to reach a specified thickness for R value to meet inspection (keep in mind building codes and requirements will vary by location and climate). “I paid something like $32,000 to do a closed cell spray foam,” shares Loerop of his Pacific Bin build.

But in hindsight, this one clever technique could have saved him thousands: "A way to save a ton of money is to just apply a very thin layer of closed cell spray foam on the inside of your walls—like three quarter to an inch thick. That will add a little insulation but the main thing is it's creating a vapor barrier for you to then roll in typical batt installation. That alone will probably save you like $15,000 on insulating your home.”

Container Home Costs

Building a custom container home can be significantly cheaper than a traditional home primarily because of the smaller footprint and materials. Before the project begins, take some time to run the numbers and set a realistic budget. Below is an overview of the main expenses for a DIY container home build—as it goes with any project, be sure to round up!

The total should include the cost of land, the containers themselves (from $1,500 to $5,000), delivery, site prep, a foundation, and permits.

Like any new home build, the shipping container home budget should also include enough to cover the building materials, as well as windows, doors, flooring, plus other interior and exterior finishings to make the space habitable and aesthetic. Hardy DIYers can save money on paid labor in a container home build, but for others, hiring professionals or buying a prefab container home can be a necessary albeit pricier option.

Of course, the cost will increase if you opt for a larger floor plan (meaning multiple containers and more construction materials), high-end fixtures and finishings, and add-ons like a rooftop deck or outdoor patio.

On average, the minimum amount homeowners should expect to spend on a completely finished 40-foot container home DIY build is $30,000-$40,. For an itemized list and full breakdown of the costs of this type of build, check out this video from a general contractor who converted a 40-foot shipping container himself using high-end materials and no additional paid labor, for just $33,000.

As previously mentioned, a prefab container home will inherently cost more in exchange for a beautiful, high-quality dwelling. Scroll through our list below of modern prefab container home builders to scope out the wide range of prices and options available on the market.

Surveying Pro Tip

Another cost saving tip from Loerop that's most relevant to rural builders of all project types pertains to property surveying. “I paid for like $8,000 for a site survey that was just completely not needed because I thought I had to be pinpoint accurate on where the home is located versus my construction plans,” Loerop shares about his property The Pacific Bin. But turns out, “if it's off five, 10 feet one way or another and you have four or five acres, it does not matter all that much. You can just open your and see the property lines on Google Maps and your location [while walking the property] and it should get you within five, 10 feet of accurate."

It’s little things like this that can save you considerable money on your total build cost. The beauty of doing it yourself!

Prefab Container Home Builders & Floor Plans

• ModBox Builders

• Honomobo

• Giant Containers

• Love Container Homes

• Uncontained Dreams

• The Pacific Bin

Frequently Asked Questions

How much do container homes cost?

The cost of a container home varies widely based on several factors, like the square feet, location, design, required modifications, permits, and labor costs required to install or set up the container. Generally, smaller container homes can start around $20,000 to $50,000 for a basic setup, while larger, more customized versions can range from $100,000 to $250,000 or more.

Is it cheaper to build a house or a container home?

It can be cheaper to build a container home compared to a traditional house, especially with smaller or simpler designs. Ultimately, the cost comparison depends on various factors like size, location, design complexity, required modifications, and the quality of materials used

How long do container homes last?

Container homes are typically clad in Corten steel, which is designed to withstand harsh marine conditions during shipping for about 10-12 years without significant corrosion. However, with proper home maintenance and treatment, container homes can last several decades.

Modern container houses are redefining the housing industry. These innovative homes take the practical structure of shipping containers and transform them into stylish, functional living spaces. 

For builders, contractors, and designers like you, the rise of modern shipping container homes presents a unique opportunity to meet a growing demand and expand your business.

To help you keep up, we’ll explore: 

• The latest trends in shipping container house design
• Shipping container home layouts and tips for designing them

Whether you’re a seasoned contractor or new to designing container homes, this guide will help you stay ahead of the curve in and beyond.

Why trust us? Here are Cedreo, we’ve got 20+ years of experience working with housing pros in the home design space. So we know what it takes for contractors and designers to design contemporary homes that land them more clients!

What Makes Modern Container Homes Unique and Beneficial?

Modern shipping container homes have become a symbol of innovative and sustainable living. They’re not only unique in their design but also offer attractive advantages for homeowners and builders.

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Modern aesthetics: in the past, shipping container houses were drab, industrial-looking structures. But modern container homes have moved past that and feature modern aesthetics in a variety of styles.

Sustainability and eco-friendliness: repurposing shipping containers gives them a second life. This reduces waste and conserves resources. Use recycled materials and boost the eco-friendliness even more.

Reduced costs: by using a pre-fabricated structure, you can save on some construction costs. 

Design flexibility: modular structures enable endless custom designs and creative layouts.

Durability and longevity: shipping containers are durable and built to endure harsh conditions and be structurally sound. 

It’s easy to see why in , shipping container homes are the perfect solution for builders and contractors who want to provide creative, affordable, and sustainable living spaces for a variety of clients.

Check out the next section with some current trends and how you can use them.

Current Design Trends for Modern Container Houses

A modern shipping container home doesn’t have to be a cold, utilitarian-style house. Here are some fresh design trends you can implement in your shipping container home designs.

Open-Concept Layouts and Flexible Spaces

About this modern trend: Open-concept layouts are a hallmark of modern container homes. They help small spaces feel expansive and versatile. These layouts eliminate unnecessary walls and create multifunctional adaptable spaces.

Tips for incorporating in your projects:

• Make the kitchen, dining, and living area all one space without interior wall dividers. 
• Use sliding doors: Go with sliding or pocket doors for more flexible transitions between private and shared spaces that don’t encroach on the open space in the container.

Maximize Natural Light with Smart Openings and Skylights

About this modern shipping container house trend: Natural light makes cramped interiors feel brighter, larger, and more inviting. Oversized windows and skylights also help improve the home’s energy efficiency by reducing the need for artificial lighting during the day.

Tips for incorporating in your projects:

• Install floor-to-ceiling windows: Use large glass panes on south-facing walls to capture maximum sunlight throughout the day.
• Position skylights strategically: Place skylights above central areas like kitchens or living rooms to create a focal point that also increases natural illumination.

Blend Outdoor & Indoor Spaces with Stylish Cladding

About this modern trend:
Stylish cladding matched to the interior style helps merge the exterior and interior of container homes by creating a cohesive aesthetic. The right cladding also improves the curb appeal and eliminates the utilitarian minimalist look that most think of when they envision standard shipping containers. 

Tips for incorporating in your shipping container home projects:

• Choose complementary materials: Use wood or metal cladding that complements the interior design for a unified look.
• Incorporate large sliding doors: Install full-width sliding doors to create a seamless transition between indoor spaces and outdoor areas.

Incorporate Modern Technology for Smarter Living

About this modern trend: Modern shipping container homes integrate smart technology to improve convenience, efficiency, and security. Tech features like these help a shipping container home align with contemporary living standards instead of being a bare-bones budget housing option. 

Tips for incorporating in your shipping container home projects:

• Plan for wiring early: Incorporate smart wiring systems during the construction phase to avoid retrofitting costs.
• Automate lighting and climate control: Use app-controlled systems for lighting and thermostats.
• Include smart locks and places for cameras.

Creative Use of Color and Materials for Exterior Finishes

About this modern trend: Bold colors and sustainable materials have transformed the way most perceive modern container homes.

Tips for incorporating in your custom designs:

• Experiment with bold accent colors: Use vibrant shades on key areas like entryways or trim to create a striking visual statement.
• Choose eco-friendly materials: Opt for bamboo cladding, recycled steel, or other sustainable materials to align with green building goals.
• Incorporate weathered finishes: Use materials like corten steel to achieve a natural patina that adds rustic elegance over time and contributes to the industrial look of the shipping container home.
• Mix and match textures: Combine smooth and textured finishes, like wood and metal, to create dynamic visual interest.

Modern container house designs continue to evolve, offering exciting opportunities for builders and contractors to innovate. By incorporating these trends thoughtfully, you can deliver container homes that are both functional and inspiring.

How to Plan a Modern Container House Design

With such a small space to work with, careful planning is important when you’re creating a modern container house design. Here are three steps that will help make your shipping container house project a success. 

Choose the Right Shipping Containers for Your Project

The foundation of a successful container home starts with selecting the right containers. Not all containers are created equal, so it’s important to prioritize quality and suitability.

Tips for Sourcing and Evaluating Containers:

• Inspect for structural integrity: Look for containers with minimal dents, rust, or damage, particularly on the corners and edges that bear the most load.
• Choose the right size: Use 20-foot containers for compact designs or 40-foot containers for larger homes or multi-container projects. You can also use combinations of two containers of different sizes.
• IMPORTANT! Verify previous usage: Avoid containers that have carried hazardous materials by checking their certification markings and prior use records.
• Try to find one-trip shipping containers: These shipping containers are used only once and are in near-new condition. They may be more expensive to purchase but you’ll save when you don’t need to make extensive repairs or refurbishments.

Optimize Layout for Functionality and Comfort

The layout of a container house determines its livability and flow. Since you don’t have a lot of space, it’s good to spend some extra time ensuring every square foot serves a purpose without feeling cramped.

Tips for Layout Optimization:

• Centralize utilities: Group kitchens, bathrooms, and laundry areas to simplify plumbing and electrical installations.
• Maximize vertical space: Use features like lofted sleeping areas and tall cabinets.
• Consider future expansion: Plan for potential add-ons or modifications in case the homeowner’s needs evolve.

Use Home Design Software to Visualize and Perfect Your Plan

Visualizing your design in 3D is crucial for identifying potential challenges and helping your clients make better design decisions. 

And because of the small nature of a shipping container home, it’s even more important to help your clients envision the interior space. It can be really hard for clients to tell from a 2D plan if the interior will feel cramped and dark. 

3D home design software simplifies this process by providing accurate, customizable layouts and visualizations.

How Design Tools Like Cedreo Can Help:

• Create 2D floor plans and 3D floor plans that reflect the unique dimensions of shipping containers.
• Easily test multiple configurations to find the most efficient and visually appealing design.
• Generate realistic 3D renderings to help clients envision the completed project.

By leveraging 3D design software, you can turn shipping container home concepts into polished, practical designs that impress clients and land you more jobs!

Contemporary Shipping Container Homes to Inspire Your Next Project

Here are some inspiring shipping container home examples to spark ideas for your next project:

20’ Single-Container Studios: A Compact Living Solution

Minimalist studios made from a single 20-foot shipping container are perfect for individuals, guest houses, off-the-grid cabins, or affordable mother-in-law suites. 

Features to Consider:

• Combine a living area with a kitchenette and a fold-out bed to maximize the use of limited space.
• Install a sliding glass door to connect the interior with an outdoor patio. This helps visually expand the living area.

40’ Single-Container Homes: The Tiny Home

A single 40-foot container transforms into a versatile tiny house. A shipping container home like this is perfect for a single person or a couple who wants affordable simplicity or even an efficient house that’s easy to use off-the-grid. 

Features to Consider:

• Add large windows and skylights to make the compact interior feel open and airy.
• Think about adding a rooftop garden or deck. Not only does it extend the usable space, but it also helps improve insulation.

Multi-Container Family Homes: Spacious and Functional

Multi-container homes are designed for families or couples who are interested in a larger space.  They combine shipping containers into spacious layouts with more space for a modern kitchen and living area. The shipping containers can be connected to each other, but you can also keep them separated.

Features to Consider:

• Use one container for shared spaces like a living room and kitchen, and others for bedrooms and bathrooms.
• Consider placing the containers on the site so as to create a central courtyard that works as a gathering area.

Unique Layouts: U-Shape and L-Shape Designs

Get creative with layouts, such as U-shape and L-shape configurations.

Features to Consider:

• Position containers around a central outdoor area, such as a pool or patio.
• Use the layout to maximize light and airflow by orienting the open side toward the sun.
• Incorporate covered walkways or pergolas to connect spaces while adding architectural interest to the site.

Three-Bedroom Homes with Extra Living Spaces

Larger households can benefit from a three-bedroom shipping container home that provides extra space and multi-purpose rooms.

Features to Consider:

• Use container combinations that let you create larger bedrooms and shared spaces like a family room. Do this by placing containers side by side and cutting openings in the containers to open up the space.

Luxury Modern Container Homes with High-End Features

Luxury container homes prove that sustainability and sophistication can coexist. These designs elevate container living with premium finishes and amenities.

Features to Consider:

• Add custom cladding, such as corten steel or wood, for a sleek, modern exterior.
• Include high-end features like gourmet kitchens, spa-style bathrooms, and built-in smart home systems.
• Design outdoor entertainment areas with features like fire pits, swimming pools, and rooftop lounges.

How Cedreo Simplifies Modern Container House Design

From planning to construction, designing a modern container house requires creativity, the right tools, and clear communication with clients. Having a tool like Cedreo streamlines this process and makes it so much easier for builders, remodelers, and construction professionals to create stunning designs and present them professionally. 

Whether you’re working on a compact studio or a luxurious multi-container home, Cedreo gives you the tools you need to turn your ideas into reality.

Cedreo Features That Make a Difference:

• Intelligent floor plan software: Quickly design detailed 2D and 3D layouts tailored to container dimensions.
• Realistic 3D Renderings: Help clients visualize their future home with life-like visualizations.
• Cloud-based software for easy team collaboration.
• Thousands of customizable design elements that fit in container homes.
• Professional Presentation Materials: Impress clients with polished documents that showcase your ideas.

Ready to take your container home projects to the next level?