How Much Does It Cost To Turn A Shed Into A Tiny House?

It is no secret that buying and maintaining a house is getting more and more expensive. For some people, it just isn’t financially feasible anymore.

How Much Does It Cost To Turn A Shed Into A Tiny House?

Thankfully, there are some alternatives that are not only much cheaper but also can create a really fun and interesting place to live.

The most popular option is a tiny house that can be converted from a regular garden shed.

In this article, we will look at how much it costs to turn a shed into a tiny house.

What Is The Average Cost Of Converting A Shed?

The true cost of converting a shed into a tiny house that is inhabitable will vary depending on the size of the shed and the commodities and creature comforts that you want to add.

However, it can be good to know what the average cost of conversion is to help you with budgeting and with the overall decision as to whether a converted shed tiny house is for you. 

On average, the cost of converting a shed into a tiny house is around $75 per square foot. This pricing includes the cost of the initial shed purchase.

With that being said, the larger your shed is, and the more appliances and utilities you want to connect to the tiny home, the more money you will end up spending.

The location of the shed can also add to the overall cost of conversion.

If you live somewhere with cold winters, you are going to need to spend more on insulation, for example. 

What Contributes To The Cost Of Converting A Shed?

Now that you know what the average cost of conversion is for tiny houses per square foot, you might be wondering what contributes to the overall cost of converting a shed.

Below, we will look at some of the most common things that you will need to consider when budgeting for your tiny house. 

Building Permits

Before you purchase your shed or book any contractors, you will need to get the appropriate building permits to create your tiny house on your land.

The true cost of a building permit to convert a shed to a tiny house will vary depending on where you live and what laws apply.

There may also be limits on the type and size of tiny houses that you can build depending on the laws of your state. 

You can obtain a building permit from your local planning and zoning office.

The permit gives you permission to build your tiny house and ensures that the building that you are doing is up to code.

You will need to submit your building plans to the office in order to get a permit for your tiny house. 

Ground Preparation

Another significant cost when it comes to building a tiny house is ground preparation (see also “How Much Does It Cost To Build A Shop House?“).

In order to make a tiny house out of a shed, you need to build permanent foundations.

This is required to comply with the building codes that will be outlined in your permit. 

The ground may need to be leveled, turf will need to be removed, and a thick layer of gravel will need to be placed (see also “How Much Does It Cost To Level Land?“).

This all needs to be done before you can begin burying the sewer and water connections to make your tiny house livable. 

How Much Does It Cost To Turn A Shed Into A Tiny House?

The complete cost of preparing the ground for your tiny house (see also “How Much Does It Cost To Level A House?“) will depend on the quality of the land that you have purchased or leased.

The more uneven and rocky the ground is, the more expensive it will be to prepare it. 

Connecting Utilities

In order to make your tiny house livable and comfortable, you will need to connect utilities to your shed.

If you are going to connect all of the utilities yourself, this shouldn’t cost too much.

However, if you are getting a professional contractor to connect up your shed, you will need to pay for quality workmanship to make sure that your shed is safe to use and live in. 

If you have already buried your connections when creating the permanent base in your ground preparations, this can make this part of your conversion slightly easier and less expensive.

To keep costs down even more, you should make sure that you or your contractor test the connections before you close up the walls. 


Sheds are not designed to be lived in as they are. Because of this, they don’t feature any insulation when you buy them.

This is something that you will need to add to your conversion.

No matter whether you are building your tiny home in a warm climate or a cold one, you should not skimp on the insulation that you buy.

Opting for high-quality insulation for your tiny home will make it a comfortable and pleasant place to live.

It will also help to keep heating and air conditioning bills as low as possible which is important. 

Finishing Touches

Once you have structurally completed your tiny home and connected all the utilities that you need, you will have to factor in the cost of finishing touches (see also “How Much Does It Cost To Finish An Attic?“).

This includes decorating to make the shed feel more like a homely space. It also includes furnishing the tiny home.

You are unlikely to be able to fit all the furniture from a regular apartment or home into your tiny home. 

Final Thoughts

Converting a shed into a tiny home is a great way to create the perfect living space for your and your family.

It is also a lot more cost-effective than building or purchasing a regular home which may be out of reach for many people. 

Frequently Asked Questions

Is It Easy To Get Permits For Tiny House Conversions?

In states that allow the building of tiny homes, getting building permits for them is much easier than getting permits for larger building projects.

This is especially true for shed conversions. 

What Are The Perks Of Living In A Shed?

There are many perks of living in a shed that has been converted into a tiny home.

Some of the main perks include being able to design your home yourself, it is a cost-effective way to live, and it is easy to maintain. 

Is It Legal To Live In A Shed?

As long as you have obtained the relevant building permits to convert your shed into a tiny house, it is perfectly legal to live in a shed. 

Luke Powell
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