Best States for Barndominium Resale Value

As real estate prices continue to rise, barndominiums are moving into the mainstream as an affordable, flexible option for spacious living. But do they hold their value? That depends. In some markets, barndominium resale values tend to be high. But in others, they can struggle. We’re going to go over the regional and structural factors at play, and tell you which states are best for barndo resale value.

Key Metrics

• Appreciation rate vs. depreciation: In weaker markets, high-end barndo builds can fail to recover their full construction cost. So, look for regions where barndos are selling at a stable or rising price per square foot relative to nearby homes.

• Time on market (liquidity): Consider days on the market when assessing resale value, if you do not want to be stuck trying to sell your barndo for months on end.

• Appraisal consistency: Look for consistent appraisals that match sales prices.

• Financing availability: It may be easier to sell your home at a good price if there are local lenders offering reliable financing options specifically for barndominiums.

What Factors Drive Barndo Resale Value?

• Geography: Barndos in rural areas are more likely to retain or grow in value.

• Zoning flexibility: The more relaxed the zoning regulations are where the home is located, the better that is for buyers.

• Pervasiveness of barndos in the area: The more barndos there are in the area that go on the market, the more likely you are to get a fair and accurate appraisal. Barndo popularity in a region also can result in financing options, which helps push buyer demand.

• Infrastructure: Barndominiums that have reliable access to internet, utilities, etc. are easier to sell. Of course, a lot of counties will make you install utilities and an access road before building a home anyway. But reliability is still a factor.

• Quality and condition: A well-constructed barndo with a lot of desirable features will be easier to sell than one with sub-par quality. You will get a higher price too if the home does not need any major repairs.

Regional Overview: Where Barndos Perform Best

Now let’s take a look at some of the top regions for barndo resale values.

Rural Texas

If there is one part of the country that most people think of when they picture barndominiums, it is Texas, specifically rural Texas. Rural TX has been where a lot of alternative housing types, including barndos and tiny homes, were popularized.

According to BuildMax (emphasis ours):

“Looking first at resales, a 2020 survey of Texas barndominium listings found 87 percent had sold for the same or higher price than their original list price. The structure type made no statistically significant impact on value changes compared to standard homes. For example, a 1,600 square foot barndominium in Winnsboro originally purchased in 2016 for $170,000 was recently relisted for $250,000. A more modest 800 square foot example in Argyle endured five years surprisingly little depreciation, purchased in 2014 for $237,000 and hitting the market again in 2019 for $219,000.”

At the time of this writing, there are 561 barndominiums for sale in Texas on landsearch.com.  Many of these properties are distributed around the rural areas and small towns surrounding Dallas.

Oklahoma

Another market where barndo homes are in especially high demand is Oklahoma. Oklahoma Magazine writes, “This trend is particularly impacting rural development in Oklahoma, where land is being sought after for barndominium builds, reflecting a desire for the barn aesthetic with modern amenities.”

At the time of this writing, a search for barndos for sale in OK shows 84 properties currently on the market. So, not as many as in TX, but still a pretty large amount.

Arkansas

As with TX and OK, Arkansas has a lot of rural areas where it is easy to build a barndominium. Existing barndos in those areas are also popular to purchase. Demand is strong in the northwest and central parts of the states.

Arkansas shows similar numbers of barndos for sale as Oklahoma at the time of this writing. We see 81 properties currently listed.

Strong Secondary Markets

Some other markets where barndos can have strong resale value include:

• Missouri
• Kentucky
• Tennessee

These states feature rural areas that are zoned well for barndo projects, which frequently retain their value when it is time to sell later down the road.

Where Value is Less Predictable

In general, a good rule of thumb is that barndominiums are easiest to build or sell in rural regions. Once you start getting into suburban or urban environments, there can be zoning issues, and sometimes objections from HOAs.

Buyers may feel cautious when considering a barndo in an urban or suburban area. It won’t typically come with as much land as one in a rural area, and there may be issues like the above to contend with.

Appraisers also don’t always know how to correctly appraise a barndo, and might subject a barndo to the same process they use for traditional homes. Sometimes, this results in undervaluing the property. Keep in mind this can happen anywhere, but might be more common in areas where barndo homes are not prevalent.

Practical Buyer/Investor Checklist

Before you try to buy a barndominium, always be thinking about the future and whether it has potential to appreciate or at least hold steady in value.

• Check listings and sales for barndominiums in the area where you are thinking about buying. Make sure that other barndos are selling at or above their original value.

• Look up the zoning regulations for the area to make sure they are not too restrictive.

• Research local lenders to make sure that buyers in the area will be able to get the financing they need.

• Ensure that the build you are planning will not cost more than what most area barndos are selling at.

• Know what kind of buyers are likely to be shopping for barndominiums in that region, and what features would appeal to them. Basically, if you cannot visualize a future buyer for a home in a somewhat specific way, that might indicate there is a lack of demand for that particular house in that region.

The Bottom Line

Barndominiums can sometimes lose value over time, but many hold their value or increase in value, just like traditional homes tend to do. Texas, Arkansas and Oklahoma are three of the top states for barndo resale value. Wherever you are shopping for a home, keep your focus on well-constructed barndominiums in rural areas.