Cheapest Types of Houses to Build in 2025

Introduction

With home prices going up, many people look for cheaper ways to build a house. Picking the right materials, design, and setup can save you a lot of money. Compact floor plans and using factory-made parts are good ways to lower costs. These ideas help more people buy their own homes. In 2025, some building methods that are simple and give good value are becoming more popular.

Most Affordable House Types in 2025

Choosing a good house that does not cost a lot means you have to think about the price, what you will use it for, and how fast it can be made. There are homes that are cheaper, like prefab homes, tiny houses, and homes made from containers. These kinds of homes can help you spend less on the building and the work needed, but you will still get what you want.

Prefabricated Homes

Prefabricated homes are made from parts that are built in a factory. These parts are then shipped to the building site, where they are put together. This way, the building process is faster. It also helps keep the quality high and makes work less costly. Many builders offer floor plans that you can change to fit what you want. This lets you make the space your own but still keep the price lower.

Prefab homes usually cost between $80 and $120 for each square foot. These homes are built at another place, not on your property. This way, there is less waste from what is used to build them. If you want to save money and time, prefab homes can be a good choice. They give people a modern and smart way to have a home.

Tiny Houses

Tiny houses are usually under 400 square feet. They are made for simple living and to keep building costs low. These homes need fewer materials and have easy layouts. A lot of people find them appealing if they live alone or as a couple.

Costs can go from $150 up to $450 for each square foot. The lower price is usually for prefabricated models. A clever layout helps to make the most of every bit of space. But zoning rules may say where you can or cannot put a tiny home. Even though tiny homes are not good for big families, they are perfect for people who want a simple life and have a small budget.

Shipping Container Homes

Shipping container homes take steel cargo containers and change them into places where people can live. Their strong build helps them stand up to bad weather. They also fit together like blocks, so you can make creative floor plans and small designs with them.

Building one of these usually costs about $150 to $350 for each square foot. A home made from one container is more affordable. A home built with more containers will cost more. The cost can change, but container homes still save money and are good for the planet, especially if you use recycled materials. If you add better insulation and upgrades, these containers turn into good places to live that feel new and comfortable.

Modular Homes

Modular homes give you a good mix of saving money and being flexible. The parts are made in a factory. Then, builders bring them to the building site and put them together. This can cut down on labor costs and help the home get finished faster.

Costs go from $80 to $160 for each square foot. Modular construction helps keep building materials safe from the weather. It often means there are fewer mistakes during building. These homes can be changed to fit what you want and give the same good quality each time. Modular homes are a good choice for affordable housing.

Kit Homes

Kit homes come in boxes that have all the parts you need, plus easy steps to follow. These homes are simple for a person to build by themselves, so you do not have to pay as much for building help.

Basic kits usually cost between $40 and $60 for each square foot. You can change your project so that it meets your needs, like if you want a cottage style or a farmhouse look. You can also add things like panels that make power from the sun or more storage without spending too much money.

Barndominiums

Barndominiums have a steel frame and mix the look of a barn with things you find in a normal home. These homes have open spaces inside. They are faster and less expensive to build than regular houses.

Shell kits start at $30 to $50 for each square foot. When finished, most builds cost about $65 to $160. These barndominiums are good for rural places or families who want to have a space they can change as needed. They help save energy, and they do not need a lot of work to keep up.

Straw Bale Houses

Straw bale construction uses packed straw bales for the walls and insulation. These homes do not cost much. They help save energy and keep heat in very well on their own.

Some basic builds can cost only $7,000. The thick walls help keep the inside at the right temperature. This can make your power bills lower. Straw bale houses do not work in every climate or place. This is because of wet areas and local rules. Still, straw bale houses are a good way to have a low-cost home that is better for the earth.

Geodesic Dome Houses

Geodesic domes use triangle panels to make a round shape. This way of building needs less stuff to make. It also helps the dome stay strong if there is wind or snow.

These homes cost about $40 for each square foot to build. Their shape gives open space inside and helps air move well. This makes them good for saving money and energy. Geodesic domes are for people who want strong homes and a new look that is not like most other houses.

Cost Factors to Consider

Building Materials

The type of material you choose is one of the biggest things that affects the cost. Cheaper choices like plywood, vinyl siding, precast concrete, and recycled wood can help you save money. These options can also last a long time and be strong even when you pay less.

Labor and DIY Costs

Labor often takes up a big part of the total cost. If you do things like painting, simple woodwork, or yard work on your own, you can pay less. Prefab and kit homes make things even easier because you do not need many professional workers.

Balancing what you do yourself with getting help from skilled people helps you keep the quality good and stick to your budget.

Land and Site Preparation

Site costs can cover things like clearing the land, making it level, and setting up ways for water to move off. You might need to test the ground or change your base, depending on the spot you pick. If you add these in your budget from the start, you can keep from having big, pricey surprises come up as you go.

Permits and Local Regulations

Permits, building codes, and zoning laws can be different in each area. These rules can change what kind of homes you are able to build and where you can put them. When you look into these rules early, it helps make the process simple and quick. You can also avoid delays and not have to pay any fines.

How to Save Money When Building

Focus on Simple Designs

Picking a simple layout, like an open floor plan, can cut down the number of materials you need. It also makes the work less hard. Try not to pick fancy features, as they take more time and money to put in without giving real value.

Source Budget-Friendly Materials

Shop at local stores and check what different suppliers have to offer. This helps you find good deals on construction materials and fixtures. You can also look at reclaimed materials or use prefab packages, as these often come with built-in savings. If you put some thought into where the materials come from, you can lower your total costs by a lot.

Final Thoughts on Cheap Homes to Build in 2025

Affordable homebuilding is possible with smart planning and real-life choices. You can pick designs like tiny homes, modular builds, or kit houses. These options give you creative places to live and can save money, too. When you use materials that cost less and make the building process simple, you lower the price without losing quality. When you get ready and have the right plan, you can build a home that meets both your needs and your budget.

Frequently Asked Questions

What is the cheapest house to build in the US?

The cheapest type of house to build in the US is often a tiny home or a modular house. These houses do not take up much space and are made in factories. This can really help cut down on the cost of things you have to use and the work it takes to build them.

Is building cheaper than buying?

This can change based on a few things. If you make a small home that does not waste space, it can cost less. You may spend even less if you already have the land. But the price can be very different, depending on where you are and how things are sold in that area.

Are grants available for budget-friendly homebuilding?

Yes. There are some federal, state, and local programs that give grants, tax credits, or loans with lower interest for those who want to build low-cost homes or who are building for the first time. Be sure to check if you can get these in your area and see if your income meets the need for them.

What mistakes increase construction costs?

These things often make costs go up: poor planning, not counting all the expenses, forgetting about code rules, and skipping the right work before you start building. If you stay away from these, you can keep to your budget.

Written by Christine Benz Updated July 17, 2025 by Albert Fang