Building a home is one of the most significant financial commitments many will make in their lifetime, but it doesn’t have to break the bank. Various innovative and cost-effective housing options in Australia have emerged, offering affordable alternatives to traditional construction.
Whether you’re aiming for a minimalist lifestyle, want to embrace sustainability, or simply looking to save on construction costs, there are several types of homes to consider. From shipping container homes to earthbag structures, each option brings its unique advantages, challenges, and price points.
This blog explores the cheapest homes you can build in Australia, helping you decide which option best suits your needs, budget, and DIY capabilities.
Let’s get straight to the point.
Building an affordable home in Australia is achievable with shipping container homes, prefabricated homes, tiny homes, kit homes, earthbag homes, and log cabins.
Shipping container homes are the cheapest, starting at around $15,000, while earthbag homes offer sustainability at similarly low costs.
Prefabricated and kit homes offer quick and customisable options, but costs start higher, around $30,000 to $50,000. Tiny homes, starting at $23,000, are ideal for minimalist living, while log cabins, though more traditional, can cost $50,000 or more.
Shipping Container Homes
Shipping container homes have gained popularity as a low-cost and eco-friendly housing option. These homes are built from repurposed shipping containers, which are both durable and affordable.
The modular nature of these containers allows for creative designs that can be expanded over time, making them suitable for various needs. They particularly appeal to those who want a minimalist lifestyle or a quick, cost-effective building solution.
Cost
A basic shipping container home can be built for as little as $15,000, especially if you can do some work yourself.
The affordability stems from the fact that the main structure—the container itself—is already in place, reducing the need for extensive construction materials.
Additional costs can arise from insulation, plumbing, and electrical installations. Still, overall, it’s one of the cheapest ways to build a durable home.
Advantages
- Durability: Shipping containers are designed to withstand harsh conditions, making them extremely durable.
- Eco-friendly: You recycle materials that would otherwise go to waste by repurposing containers.
- Modularity: Containers can be stacked and arranged in various configurations, allowing for flexible design options.
Challenges
- Insulation: Containers require proper insulation to be comfortable in varying climates.
- Zoning and Permits: You’ll need to ensure that your local council permits container homes and that they meet all building codes.
Prefabricated Homes
Prefabricated or modular homes are built in a factory and assembled on-site. This method significantly reduces construction time and costs, making it a popular choice for budget-conscious home builders.
Prefabricated homes offer the advantage of being constructed under controlled conditions, which can lead to better quality and fewer weather-related delays. They are ideal for those who want a quick, hassle-free building process without compromising space or amenities.
Cost
Prefabricated homes start at around $50,000 for a basic three-bedroom model. These homes offer more space and amenities than tiny homes while remaining cost-effective.
The cost can increase depending on the customisations and finishes, but they generally remain more affordable than traditional construction methods.
Advantages
- Quick Construction: Since the home is built in a controlled environment, there are fewer delays due to weather or other on-site issues.
- Quality Control: Factory construction ensures a high level of quality control, reducing the likelihood of defects.
- Customisation: Many prefab homes offer customisation options, allowing you to select layouts and finishes that fit your budget.
Challenges
- Transport Costs: While the home may be affordable, transporting large sections to your site can add to the overall cost.
- Foundation and Site Prep: You’ll still need to prepare the site and build a foundation, which can incur additional expenses.
Tiny Homes
Tiny homes, typically less than 400 square feet, have become trendy for those looking to downsize and reduce living costs. These homes are often mobile, built on trailers, or designed to be stationary on a small plot of land.
Tiny homes are perfect for individuals or couples seeking a minimalist lifestyle with lower utility bills and less maintenance. They also offer the flexibility to move locations, making them ideal for those who prefer a mobile lifestyle.
Cost
Depending on your chosen materials and features, DIY tiny homes can be built for as little as $23,000. Pre-built models are available but may cost more.
While the initial costs are low, it’s important to budget for high-quality materials that ensure durability and comfort in a small space.
Advantages
- Affordability: Smaller sizes mean material and lower overall costs.
- Mobility: Many tiny homes are built on wheels, allowing for flexibility in location.
- Low Maintenance: With less space to maintain, ongoing costs for upkeep and utilities are significantly reduced.
Challenges
- Space Limitations: The small size of a tiny home may only suit some, particularly families or those who require more space.
- Financing: Traditional mortgages are often unavailable for tiny homes, so you may need to finance the build through personal loans, savings, or credit.
Kit Homes
Kit homes are another affordable housing option. All the necessary materials and components are delivered to your site, and you (or a hired contractor) assemble the house.
These homes come in various styles and sizes, offering more flexibility than other budget options.
Kit homes are ideal for those with some DIY experience or those who want to save on labour costs by participating in the assembly process. They also allow for customisation while keeping the overall structure simple and cost-effective.
Cost
Prices for kit homes vary depending on size and complexity, but basic models can start around $30,000. The cost can increase if you opt for more customisation or higher-end materials.
However, purchasing materials in bulk in a kit can lead to significant savings compared to buying items individually.
Advantages
- Cost Savings: You can save money compared to traditional construction by purchasing materials in bulk and assembling them yourself.
- Design Variety: Kit homes come in many designs, from simple cabins to more elaborate family homes.
- Ease of Assembly: Many kits are designed for easy assembly, making them a good option for those with DIY skills.
Challenges
- Labour: You’ll either need to invest time and effort into assembling the home yourself or hire someone to do it, which can add to costs.
- Foundation Costs: As with prefabricated homes, you’ll need to prepare the site and build a foundation, which can increase the overall budget.
Earthbag Homes
Earthbag homes are a sustainable and low-cost building option. These homes are constructed using bags filled with earth or other materials, stacked and compacted to form the walls.
Earthbag homes are ideal for those who prioritise sustainability and are willing to invest time in manual labour. They offer a unique aesthetic and are highly resilient, making them suitable for various climates and environmental conditions.
Cost
Building an earthbag home can be very inexpensive, with basic models costing as little as $10,000. The affordability comes from the use of local and natural materials.
While the initial construction is cheap, additional costs may arise from waterproofing and finishing the structure to ensure longevity and comfort.
Advantages
- Sustainability: Earthbag homes use natural and often locally sourced materials, reducing the environmental impact.
- Energy Efficiency: The thick walls provide excellent insulation, helping to regulate indoor temperatures.
- Durability: Earthbag homes are known for their strength and resistance to natural disasters like earthquakes and floods.
Challenges
- Labour-Intensive: Building an earthbag home requires significant manual labour, which can be time-consuming.
- Permit Issues: Not all local councils may be familiar with or approve earthbag construction, so it’s important to check regulations before starting.
Log Cabins
Log cabins are a traditional and affordable housing option, particularly in rural areas. They are often built using locally sourced logs and range from small, rustic cabins to larger, more modern designs.
Log cabins offer a simple, sustainable living option and are popular in regions with abundant timber resources.
Cost
Building a log cabin can start around $50,000 for a small, basic structure. Larger cabins with more amenities can range from $100,000 to $150,000.
The lower cost is due to the availability of materials and the simplicity of the construction process, especially if you choose to build it yourself or with a small team.
Advantages
- Sustainability: Uses natural, locally sourced materials, reducing the environmental impact.
- Affordability: Lower construction costs due to simple building techniques and available materials.
- Durability: Log cabins are known for their strength and ability to withstand harsh weather conditions.
- Energy Efficiency: Logs provide natural insulation, helping to maintain a stable indoor temperature.
Challenges
- Maintenance: Requires regular upkeep to prevent issues like wood rot, pest infestation, and weather damage.
- Location: Best suited for rural or wooded areas where timber is readily available, limiting location options.
- Building Codes: Depending on the area, they may face stricter building codes and regulations.
- Construction Time: Building a log cabin can be time-consuming, especially if done by hand.
Conclusion
Building a cost-effective home in Australia is entirely possible with the right approach and choice of materials. Shipping container homes, prefabricated houses, tiny homes, kit homes, and earthbag homes are all viable options for those on a budget.
Each type offers unique advantages and challenges, so it’s important to consider your needs, skills, and financial situation when deciding the best fit for you.
You can build an affordable and comfortable home with careful planning and a focus on simplicity.
FAQs About Cheapest House To Build
Can I Use Sustainable Materials And Still Build Cheaply?
Yes, sustainable materials can be affordable, especially if you choose locally sourced or recycled materials. Bamboo, reclaimed wood, and recycled metal are eco-friendly options that help keep costs down while reducing your home’s environmental impact.
How Long Does It Take To Build A Low-Cost Home?
The timeline for building a low-cost home depends on the complexity and type of construction. Prefabricated or modular homes can be built in 3 to 6 months, while traditional homes may take 6 to 12 months or more.
Do I Need An Architect For A Budget-Friendly Home?
You don’t necessarily need an architect for a budget-friendly home, but having one can help ensure the design is efficient and cost-effective. Some builders offer pre-designed plans that can save on architectural fees.
Why Is It So Expensive To Build A House In Australia?
The material and labour shortage will likely significantly increase housing construction costs over the next few years. As of June Quarter 2022, over 104,000 houses were under construction across Australia, a record high and 81.2 per cent higher than pre-pandemic levels.
Which City In Australia Has Cheap Houses?
Salisbury was South Australia’s cheapest suburb for units, with a median price of $255,000. Bridgewater in Tasmania, the state’s cheapest suburb for houses, came in at $377,875. Demand is on the up and up.