How Much Do You Have to Pay for Shed Conversions? – Complete Guide
Workplace Inspiration

How Much Do You Have to Pay for Shed Conversions? – Complete Guide

|Jul 23, 2023

Houses come in all shapes and sizes. Your living place can range from just a bench where you sleep to a huge mansion with 20 rooms. Each person builds their home depending on their needs and budget. That's why many people consider shed conversions.

Small houses are popular for many people, especially those who need low-cost living solutions. However, it involves more than just buying a small ADU (accessory dwelling unit) and turning it into a home.

Although affordable, building and maintaining a converted shed also requires money. Therefore, you should budget to make sure you have enough money to create your next small living space.

Luckily, here's all the information you need to turn a shed into a house, from how much money you should have to the factors that can throw off your budget.

Read on for related costs, considerations, and the best shed conversion ideas!

What Are the Benefits of Converting a Shed?

Sheds are very useful. These structures can add room back to your garage or basement if crowded, protect your tools from the elements if you can't store them at home, offer some shade during the summer, and more.

In addition, if converted into houses, sheds offer many benefits, including the following:

Quick Completion

Turning a shed into a great place to live doesn't take too long once the structure is delivered and set up. The process is fast and easy. Actually, many people convert prefab ADUs into tiny houses during their free time.

If you plan carefully and have everything you need, you can speed up the process and create a new living space in less time.

Quick Completion - shed conversions


Converting a shed into a house is much more affordable than buying a new property, even if it's small. People who need a living space but want to save often consider this option.

Many choose an affordable prefab ADU to save even more and turn the structure into a small space where they can sleep, work, or play.

While you need some materials and additions, the costs to convert a shed are much cheaper than buying or building a small house. Additionally, you can save a lot by using pre-made options and recycled materials.

Multi-purpose Spaces

Besides converting a shed into a tiny home, you can also turn this structure into a multi-purpose space. Many use them as dumping grounds for things they can't store at home.

However, sheds have great potential to become any space you need, whether you work from home and want to create an office or love to exercise and plan to build a small home gym.

You only have to find the best shed conversion ideas and create that extra space you need. Many consider garage-office conversion, for example.

Multi-purpose Spaces - shed conversions

More Room for Small Houses

Is your home so small? Do you need extra floor space? You can convert a shed into many room types, including the following:

  • Living room
  • Dining room
  • Bedroom
  • Home gym
  • Studio
  • Playroom
  • Games room
  • And more

Whether you turn the shed into a tiny home with different spaces or just a single room, these structures can provide the extra space you need.

Affordable Housing for the Homeless

According to the US Government, shed conversions have also become very popular because they're an affordable way to obtain housing.

Authorities have described these structures' potential to house people experiencing homelessness, especially in communities where there's no affordable housing, since a shed conversion to a home doesn't require a huge investment.

Although the US government warns that communities should be cautious when embracing these approaches, it says that tiny houses can be a good solution for homelessness if they're appropriate to provide a permanent home-like environment.

Advocates have also insisted that people must seriously consider tiny homes to solve the housing crisis, as prices for buying new properties have gone through the roof.

Affordable Housing for the Homeless

Factors Affecting Shed Conversion Costs

Converting a shed into a house is an affordable solution and brings many other benefits. However, you should consider different factors. Costs may vary based on the structure's size and shape or materials, for example. Here's more information:

Building Costs

The initial structure is the first thing you need to turn a shed into a home. Are you going to build it or buy a prefab option? If you want to save, consider their costs to make a sound decision.

Building a shed involves different steps, such as buying materials, which can cost up to $7,000 if they're sturdy and high-quality.

In addition, you must pay labor, which can amount to up to $4,400 in expenses, depending on the land's conditions. As a result, the cost of building a shed is high.

However, a prefab accessory dwelling unit is much cheaper, which means you can save money. Also, you don't have to spend weeks working to build a tiny home.


The shed size can also impact final costs. Do you need a space for just storing tools? Or do you want a large-sized structure that serves as a warehouse?

Since sheds have been designed to provide extra storage space for residents, they're often small. However, you can find larger models, which are more expensive.

Whether you buy a prefab ADU or plan to build a shed, the larger the structure, the more you'll have to pay.



When buying or building a shed, you can also choose between different materials. Many structures use metal sheets over metal frames, while others are made of wood.

You can also find sheds made of plastic or wooden structures with tempered glass. The possibilities are endless. In addition, there are different options for flooring, such as concrete, plastic, or wood.

Steel is excellent for those who want sturdy, high-quality sheds but want to save money. This material is durable and can last longer.

Wood is another great material for sheds. Although more expensive, wooden sheds are beautiful, add curb appeal to properties, and are environmentally friendly.


Do you need to connect utilities? Consider your shed's intended use. If you must add connections to gas, water, and electricity, costs will be higher.


New Furniture or Appliances

What about furniture and appliances? Do you need a new desk, storage cabinets, or chairs? Do you think you should find a new TV, fridge, and washing machine? You have to add those essential items to your budget.

If you consider a shed conversion to a home, you likely need a new or extra living space, so you must have essential furniture and appliances to make it comfortable. This often results in higher costs.

Current Shed's Conditions

Do you already have a shed and want to convert it into a tiny home? Consider the structure's current condition.

If it has leaks or the roof is in poor condition, you must resolve those issues before the conversion process. This will incur extra costs.

Shed Conversion Type

As mentioned, you can find many shed conversion ideas, whether you need a small house, an office, or a home gym.

The type of conversion you need will influence the final cost. Converting a shed into a house is more expensive than turning an ADU into an office since you need utilities and more furniture pieces or appliances.

Also, you can find many office pods for sale. Most are cheap and help you save time and money when building a working space at home.

workpod for gym

How Much Does a Shed Conversion Cost?

Considering all the factors mentioned above, it's no secret that the costs of converting a shed into a house may vary. However, the average is around $75 per square foot.

This only applies if you're purchasing a prefab studio or pod for the conversion. Building the shed yourself can also alter prices depending on the materials you choose.

However, here are several example costs to give you a better idea of ​​how much money you need to convert a shed into a small house:

  • Prefab shed – $4,000 to $10,000
  • Appliances – $400 to $4,000
  • Windows – $500 to $600
  • Flooring – $300 to $1,000
  • Electrical systems – $750 to $3,000
  • Fixtures – $1,000 to $5,000
  • Interior finishes – $500 to $4,000
  • Water heater – $500 to $1000
  • Paint – $50 to $200

As mentioned, costs may vary based on your needs. Besides the expenses listed above, you may also need extra money to pay for interior wall repairs, HVAC, fasteners or adhesives, and toilets.

How Much Does a Shed Conversion Cost?

Shed Conversion Ideas – Making This Space More Comfortable

You can make a converted shed the ideal space to live and create new memories with your loved ones! When it comes to customizations, the possibilities are endless. Let your imagination run wild to create the perfect tiny home.

Are you looking for ideas to make this structure more beautiful, comfortable, and familiar? Consider the following during the shed-to-home conversion process:

Add Color!

Painting your shed isn't required but can make your new tiny house look more lovely and fresh.

Ideally, you should consider the surroundings to choose colors that create beautiful scenery. The right one will blend with the plants, flowers, or other spaces to give the new small house a soothing look.

Add Lights

Many people add an electricity extension to their sheds to install appliances and other stuff. However, there's another thing that needs power: lighting systems. They're essential!

Adding light to your shed will create a more comfortable space. Also, you can use different lighting solutions to decorate your tiny house. Use DIY mason jar lights or choose vintage lamps to give this space a unique look to match your style.

Add Lights

Buy a Cozy Couch

If there's one thing that will help you feel at home, it's definitely a cozy couch. They're comfortable and perfect for resting after a busy day at work.

In addition, furniture always adds to a house's beauty. You can choose a beautiful, cozy couch or consider other options, such as chairs, a sofa, or a table.

Don't Forget Home Decor

Some decor can make your new tiny house more beautiful, lively, and appealing. Indoor plants can help you achieve that goal.

You can also consider paintings on the wall, light decorations, or small sculptures to add to your shed's beauty. All are great options.

Many people also apply vinyl to the floor. As it's available in different textures and designs, vinyl can boost your shed's overall appearance.

Multi-purpose items, such as a bookshelf or wall organizers, can make your tiny home look better. You only have to choose beautiful and original options. In addition, they provide extra storage space.

Don't Forget Home Decor

Consider Your Hobbies!

Your converted shed can also be the perfect place to spend your free time or learn something new if you consider your preferences and hobbies.

If you're a bookworm, a mini-library filled with your favorite novels can be a great addition. Besides making your shed more comfortable and beautiful, you'll have a few books at hand every time you want to go on a reading adventure.

A canvas and an easel can also be great options if you're an artist and love to create new things.

Define the Intended Use

Converting a shed into a house is exciting and fun. In some cases, it's also the solution to a housing problem. That's why you must define the intended use to adapt the space accordingly.

You can turn your shed into a small guest house/bedroom to have company over the holidays for example. There are many prefab home additions for different purposes and preferences.

Define the Intended Use

Final Thoughts

Shed conversions are more and more popular. Many people are interested in this process because it's ideal for creating a tiny home and having extra living space. Others turn their pods into offices or art studios.

Most of them care about costs. However, converting a shed into a house or any other space is much cheaper than building or buying a new property.

If you need a new living space and love a small house, shed conversions may be for you. As you can see, if you buy a prefab structure, you don't have to break the bank to afford your new tiny home. Instead, you'll save time and money.

Also, you can find many shed conversion ideas and be creative to build a comfortable and beautiful new living space.

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