This is How Much It Really Costs to Convert a Shed to a Home

A viral TikTok video shows how a couple transformed a shed into a beautiful home. We did the research and reached out to an expert to see just how much a project like that costs.
Catherine Hiles Avatar
Tuff Shed set up as a tiny home on lot of land
Photo: Tuffshed.com

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There’s a home going viral on TikTok, and the star of the show is a humble shed from Home Depot.

Over on TikTok, user Amanda McCormick (@just_a_glimpse_) posted a video of her new home, which was built from a Home Depot Tuff Shed. But this is no ordinary shed. It has a full kitchen, two bedrooms, two and a half bathrooms, and three balconies overlooking the woods and a lake. Inside the home, you’ll see shiplap walls, a gorgeous stone slab countertop, sliding barn bathroom doors, and even a small walk-in closet.

Best of all? The super-customizable Home Depot Tuff Shed starts at under $4,000 for a base model—though experts say you’ll probably pay much more than that to create your own shed home. Let’s look at this unique home and how you can create your dream home from a shed.

Turning the Tuff Shed into a Dream Home

Almost any shed could be made into a tiny home or accessory dwelling unit (ADU). But the Tuff Shed is especially well-suited to this task due to its customizability. On the Tuff Shed website, you can choose between 10 basic designs and customize the building to suit your needs. Whether you want a basic storage shed or a decked-out hobby room (or even an entire home), you can configure it exactly how you want on the website.

For example, we priced a one-story 16×30 (480-square-foot) TR-800 ranch-style shed with six windows, two doors, and a skylight at $18,957.75. That doesn’t include interior finishes, so you’ll need to price that out separately (and any labor costs from hiring pros to transform the shed into your new home). However, the shed price includes delivery and installation—there’s no need to assemble the shed once it’s delivered, saving time and money.

Some Home Depot locations display Tuff Shed models in their parking lots, so you can check them out before buying. If you find a model you like locally, you can purchase that exact one. If not, configuring the shed online takes just a few minutes.

Ordering a large shed or barn allows you to design your interior layout based on your needs. McCormick’s home boasts two stories with two decent-sized bedrooms and an open living area, but you could break up the space however you wanted. If you only need one bedroom, you could have a larger bathroom or even create a small office or storage area.

The True Cost of a Shed Conversion

Buying a shed to convert into a home is just part of the cost. Finishing the shed’s interior, installing electrical and plumbing, and purchasing furniture will all add to the overall cost—and if you’re not up to the challenge of a DIY shed conversion, you’ll need to consider labor costs as well. We consulted Angie Hicks, co-founder of Angi, to learn more about the scope and cost of a shed conversion project.

“Converting a shed into an ADU is a big undertaking,” Hicks explains. “You’ll need to address insulation, ventilation, plumbing, electricity, heating and cooling, and possibly foundation work. The scope can vary widely depending on the condition and size of the existing shed, local building codes, and access to utility connections. For many homeowners, it’s a full-scale renovation that requires careful planning and professional support.”

Hicks estimates that such a project could cost between $110,000 and $285,000 to complete. “While reusing an existing structure can offer some savings, you’ll still need to invest in foundational upgrades, interior finishes, utility hookups, and code compliance,” she explains. “The final cost will depend heavily on your location, the condition of the shed, and the level of customization.”

Alternative Ways to Build Your Dream Home for Cheap

A kit home or shed conversion is an ideal solution if you want to build your dream home but have a limited budget. But the Home Depot Tuff Shed isn’t the only option. Many of the best kit homes have similar benefits and are incredibly affordable. Here are a few of our recommendations.

  • The Cedarshed FarmHouse is a beautiful rustic pick. It’s sturdy and easy to assemble, made of western red cedar–panelized wall sections and a cedar roof with pre-attached shingles. Get the Cedarshed FarmHouse at Amazon starting at $12,742.
  • The Allwood Avalon is a 540-square-foot wooden cabin kit that costs less than $40,000 for the shell. You’ll need to assemble it yourself and budget for your chosen interior layout and finishes. Get the Allwood Avalon at AllwoodOutlet.com.
  • The Bungalow in a Box is a prefab home that comes in various sizes (12-by-16 feet to 32-by-36 feet) and can be built within about a week using a crane. Get a price quote from BungalowInABox.com.
  • The Mighty Small Homes Modern model comes in three sizes and is highly customizable inside and out. The base kit starts at $26,885 for a 256-square-foot studio and maxes out at $65,345 for a 1,200-square-foot, 1-bedroom model. Get your Modern kit at MightySmallHomes.com.

These models require assembly, so you’ll need to be experienced with DIY projects or pay a pro to assemble the home. Hicks recommends checking zoning and permitting requirements in your area before embarking on this project. “In many areas, detached ADUs aren’t allowed or have strict guidelines regarding size, setbacks, and utility access,” she explains. “Permitting can make or break a project like this, so it’s essential to understand what’s allowed on your property before you begin.”

Whether you choose a kit home like our recommended options or buy a Tuff Shed in your chosen configuration, a shed conversion project could let you design your dream home for less—as long as you’re prepared and have a realistic budget.

 
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Catherine Hiles Avatar

Catherine Hiles

Senior Editor

Catherine Hiles is a senior editor for the Performance team at BobVila.com. She brings a decade of experience writing, editing, and publishing in a variety of different industries, from home and automotive to finance and travel.