Shipping Container Homes Are the Green Building Material You Should Know

If you’ve ever seen a shipping container converted to a dwelling, you might have wondered how a vessel used on cargo ships came to reside in a residential area. You might also have questioned its practicality. These recycled structures are not only approachable, but they’re also becoming more common. “Container homes offer an innovative and sustainable approach to modern housing. They are extremely durable, unique, smaller than traditional houses in the United States, and comparable in price to stick-built homes,” says Shannon Palmer with Relevant Buildings, a company specializing in shipping container homes in Oregon and Washington. 

Shipping container homes gained popularity as part of the tiny house trend that developed in the mid-2010s. “They are a sustainable, efficient, and customizable solution that can provide a minimalist and compact lifestyle. This makes them a great option for people looking to simplify their lives and reduce clutter,” says Anthony Pope, Principal at Atelier7, an Atlanta-based firm specializing in sea container architecture and design.

Additionally, these modular units are highly versatile. Shipping containers work as both primary residences and accessory dwelling units (ADUs), practical options for hunting cabins or nature getaways, and even offer suitability for disaster relief efforts and temporary housing. Increasing interests in sustainable and affordable building solutions are also seeing shipping container homes on the rise. 

What Is a Shipping Container Home?

As the name suggests, shipping container homes are actually made from recycled shipping containers that were once used to transport cargo. “When shipping containers complete their useful life of carrying materials across seas, it doesn’t necessarily mean they can’t be used anymore,” says Palmer. “Typically, they are still weather-tight and provide a strong, pre-built structural shell that can be modified into a house, extending its life into an upcycled structure.”

Many shipping home companies prefer containers that were only used once; heavily used cargo containers become rusty and banged up, but one-time-use containers (sometimes called one-trip containers) are like new and still in great shape to be repurposed as housing. 

While some architects design and build custom dwellings that use shipping containers, most container homes are prefabricated modular homes that are shipped directly to you. These are nearly complete homes—the exterior structure, interior walls, cabinets and fixtures are already in place, with some components ready to be installed once the home arrives at its destination. Container home companies typically offer a few standard models to choose from, but many allow for customization to these plans; some even offer entirely custom design services. 

“Since these buildings are based on shipping containers, there are various sizes available, with the most commonly used sizes being 20 and 40 feet in length,” says Pope. But these homes aren’t limited to just one container. “They can be tailor-made and arranged to satisfy your unique requirements and preferences,” says Pope. “They offer the flexibility to vary in size and design, enabling multiple containers to be connected vertically or horizontally, producing an extensive residential area.”

Pros and Cons of Shipping Container Homes

Interested in a shipping container home? Get a sense of some of the distinct advantages and disadvantages that come with this alternative housing type, and see how shipping container homes compare to traditional stick-built homes. 

Pros of Container Homes

Sustainability

“It's important to consider that sustainability can vary depending on the construction process, location, and the degree of eco-friendly features incorporated, but container homes offer significant sustainable advantages that are worth considering,” says Pope. “Not only does this reuse of materials decrease the demand for new construction resources, it also lessens the environmental impact that comes with new building material production."

Prefabrication also helps with sustainability. Completing the majority of the work at the business, rather than the home's site, "minimizes the amount of travel of contractors to and from different properties and lessens the overall impact of construction on the site,” says Palmer. “Container homes also generate less construction waste compared to traditional building methods because modifications are made directly to the containers,” Pope adds. Choosing energy-efficient windows, appliances, HVAC, and insulation can also contribute to the sustainability of shipping container homes.

Simplicity and Predictability

Generally, with a prefabricated, standard-model shipping container home, you choose from a limited assortment of finishing choices. For example, you may select cabinets in a certain color or finish, rather than specifying the style, brand, and color of the cabinets. The result is a more streamlined design and decision-making process. The limited selection also means that costs and fabrication time are more accurately predicted, with potentially faster construction times, too. Also, prefabricated unit payments are usually scheduled at key intervals, such as the down payment, start of the fabrication process, and at delivery, so you can predict when spending will occur. However, there are plenty of other expenses you’ll still have to plan for, such as site preparation and connections once the unit reaches your property.

Durability

“The majority of the steel on shipping containers is Corten steel, which is made to withstand the wet, salty environment at sea. Built for these harsh conditions, it makes sense that containers will be resistant to sun, wind, and rain,” says Palmer. The durable steel shell will be less affected by weather than traditional exterior siding, which may result in cost savings on things like exterior maintenance.

Comparable Costs and Financing 

When it comes to financing, traditional mortgages and construction loans are available for shipping container home projects, plus some shipping container fabricators directly offer financing options. Though you might expect cost savings from using recycled building materials, shipping container home costs are actually comparable to traditional homes. This is, in part, because the materials and labor needed to finish the interiors and get the container connected on site are similar for both types of housing.

Some companies offer options to purchase just the container shell that has been modified for key structural components like doors and windows. This allows you to finish the interior yourself once the shell has been placed on site. If you’re handy, it’s a great opportunity to save money and invest sweat equity into your home; just remember, it has to be built to code, which can be less clear than DIYing a traditional home. 

Cons of Container Homes

Lack of Familiarity

Unlike traditionally built homes, Palmer says shipping containers are not yet a typical building component. This not only makes it a challenge to find shipping container homes in your area, but it's also likely harder to find knowledgeable professionals who are comfortable working with the structures.

The lack of familiarity impacts permits and regulations, too. “As far as regulations go, traditional homes are straightforward, and building codes are well-known,” says Pope. “Shipping container homes may come with additional challenges as some locations have rules in place that govern their use. Obtaining necessary permits may be more complex in some areas,” says Pope.

But that doesn’t mean it’s entirely an uphill battle. “Generally, most lots that are zoned for a traditional single-family residence will allow a shipping container house, as long as the container home is built to the state or local building codes,” says Palmer.

Resale Value

“Traditional homes tend to have a dependable resale market, with values that tend to hold up over time,” says Pope. “On the other hand, while the demand for shipping container homes is growing, their value depends on several factors like location, design, and the condition of the shipping container.” Not only is the value of a shipping container home less clear for resale, but buyers may not yet be searching the traditional real estate market for these dwellings.

Delivery Access 

Shipping container homes arrive mostly completed. Unlike a traditional home that develops on site, a shipping container home is a large, prefabricated structure that needs to be maneuvered and placed on the site, which can be an added challenge. “Sometimes, the access to a site does not allow for large trucks or cranes delivering the containers,” says Palmer, 

Limited Styles and Design

Shipping container homes are much more limited in their design and layout than traditional homes. “While the dimensions of the container may place limitations on the floor plan, a little creativity in design can help maximize the space,” says Pope. Aesthetically, stick-built homes have an abundance of architectural types to draw from; container homes, on the other hand, typically look similar. “Shipping container homes lean toward an industrial look that might not suit those who seek a more conventional appearance,” says Pope. 

But shipping container homes do have some flexibility in the look and construction. “Some of our models are a mix of containers and wood, which provides the novelty of a shipping container home, while still allowing the house to look a bit more like a traditional house,” says Palmer. Exterior additions like decks or alternative siding can also help create a more traditional look.

How to Find a Shipping Container Home

Finding a shipping container home is not the same as picking out a house on the real estate market, but a few smart searches will get you on your way. “Start with a basic internet search for container home providers in your state and then expand to other states,” says Pope, noting that the search engine’s algorithm and analytics will adjust to help find sources. “If you have found an image of a container build you are fond of, use Google Image Search to find the design or fabrication firm.” These approaches can work for identifying prefab container homes or architects who create custom designs incorporating shipping containers. In either case, additional search terms like prefabricated, custom, modular, sustainable, or architect may also help you find the right results.

When evaluating container home providers, Palmer says it's important to consider if the buildings will meet local code; some simple prefab units may not actually work as a home, and others are built without locality in mind. “If you are building or buying a container home, we recommend making sure it meets your state and local codes, as well as has permits for the construction process. These pieces will make it easier to insure the house and sell in the future,” says Palmer. Some companies, like Relevant Buildings, focus on creating to-code buildings only for their local area. Other companies may have a network of professionals to help you with permits and codes in your area.

Another robust resource is the Modular Building Institute, which is “home to hundreds of modular building companies and suppliers and is a great start to finding some of their member resources,” according to Pope. “They have technical data, regulatory data and are the leading organization working to expand the opportunities for modular building.”