How Much Does It Cost to Build a Shed? A Budgeting Guide

• Typical Range: $200 to $30,000
• National Average: $2,500

With the high cost of indoor living space, many homeowners opt to construct a shed to store overflow items. A shed can serve as a lawn-and-garden catchall or be used as a separate office or she shed. The typical cost to build a shed is $200 to $30,000, and while that’s a pretty wide range, the national average is $2,500. The price range includes purchasing a small prefab shed and hiring a pro to install a custom model.

Among the most significant factors in the cost difference are the type of materials chosen and the method used to build the shed. In general, expect to pay $15 to $150 per square foot for a shed.

Factors in Calculating Cost to Build a Shed  

While the national average cost to build a shed is $2,500, this will fluctuate based on the size and the style of the shed, the material, and the cost of labor. When estimating the cost, consider the following factors.

Size 

The larger the shed, the more it will cost. A small 4-foot by 7-foot shed ranges from around $100 to $1,000, while a larger 12-foot by 16-foot shed runs about $3,000 to $15,000. It’s not just floor space that counts—consider height as well. A shed with a low roof will cost less than a shed with a higher roof.

Materials 

The type of materials used in the construction of the shed plays a significant role in the ultimate cost to build a shed. For example, a small prefab vinyl shed could run as little as $200, while a metal shed ranges from $500 to $7,000. A shed built from wood costs between $3,000 and $15,000. At the high end, a shed made from brick or stone could potentially run as much as $30,000.

Style 

The shed’s style and purpose are also related to the final cost. A simple garden shed might cost between $100 and $1,000, while a storage shed can run $300 to $15,000, depending on its size and whether it features amenities such as shelving. An open-stall shed might run $1,500 to $10,000, while a shed used as an office or a she shed typically runs $5,000 to $15,000.

Labor and Permits 

Communities vary in ordinances and building codes, and if you have to pull a permit, you could pay $100 or more. The cost of living also varies from community to community, so the going rate of labor will impact the final cost of the shed. In general, a contractor will charge between $50 and $100 per hour per worker.

Additional Costs and Considerations

Storage sheds can come with a few added costs you may not have considered. While the average price tag of a shed ranges from $200 to $30,000, factors such as whether the shed will have a foundation or finished interior living standards will also figure into the final tally. Before choosing a shed, consider the following aspects that may come into play.

Land Clearing and Excavation

A backyard shed must sit on level ground to be functional and efficient. If the spot where the shed is to be located currently has shrubs or trees or sits on a slope, the land must first be cleared and leveled. This excavating process could cost anywhere from $1,300 to $4,400.

Foundation Building 

Not all prefab shed manufacturers require concrete slab foundations, but most large custom-built sheds will start with one. Some municipalities require both prefab and custom-built sheds to have a slab foundation. Check with your local building authority for the rules in your community. If a foundation is necessary, it could add a substantial amount to the final cost, from around $4,000 to $12,300.

Electrical and Plumbing 

If the shed will be used as an office, guest quarters, or a she shed, you’ll probably want to have it wired for electricity so you can install lights and plug in a coffeemaker, laptop, or other small appliances. In most communities, wiring must be done by a licensed electrician, and it could cost $600 to $2,200 to have electricity run to the shed.

Insulation

Many sheds do not have insulation, but if you’re going to use the structure as an extension of your living space, you’ll want to have it insulated. Since most sheds are relatively small in size, insulating one isn’t a pricey proposition most of the time. The cost to have a shed insulated starts around $200, depending on the insulation used.

Prefab vs. Original Construction  

Most home improvement centers feature a handful of available prefab sheds on their parking lots. Customers purchase the sheds in kits and then have them assembled at home. The average price of a prefab kit is $1,500 to $4,000. Having the kit assembled by a pro will add about $10 to $20 per square foot, depending on the complexity. In comparison, having a shed built from the ground up with raw materials runs more—about $40 to $75 per square foot, not counting the cost of the materials.

Customizations and Enhancements

Any unique additions or enhancements will increase the cost of building a shed. For example, having a shed constructed to serve as a custom playhouse for the family’s youngest members will cost $60 to $150 per square foot, depending on style and amenities. A prefab playhouse runs $500 to $5,000 before labor assembly costs.

Cost to Build Shed Types

Individual needs vary, and fortunately, there’s a shed type for just about every want or need. The type of finish that goes into creating different kinds of sheds will affect the overall cost. Before buying a shed or hiring a contractor to build one, determine the scope of its intended usage.

Storage Shed Cost

With the high price-per-square-foot of home construction, homeowners often find themselves with inadequate room to store spillover items, such as sports equipment or bicycles. A shed designed for storage often has several wall shelves to organize items and can cost $300 to $15,000. Sometimes called a garage shed, this extra space can also hold a mechanic’s tools and auto supplies or serve as a workshop.

Garden Shed Cost

Garden sheds are among the least expensive types of sheds available. They are often small, resembling a standing wardrobe with cabinet doors that enclose several shelves. A garden shed can usually be attached to the back or side of a garage for stability, and it will cost $100 to $1,000.

She Shed Cost

She sheds have been trending for a few years now, and they resemble storage sheds but may be upgraded to include a few windows. The interior is often finished with paneling or drywall to resemble the interior finish in a home and make the structure suitable for relaxing or for use as a home office. Expect to pay $5,000 to $15,000 to build a she shed.

Horse Run-In Shed Cost

For those who own a horse or raise other animals, an agricultural run-in shed is just the ticket to offer the animals a modicum of protection against wind and rain. A run-in shed is open on one side so livestock can enter and exit at will, and the cost to build one ranges from $1,500 to $10,000, depending on size and materials.

Cost to Build a Shed: Benefits of Building a Shed

When additional space is needed, a shed makes sense. The main goal is to ensure that the shed will meet the user’s needs. While the average cost to build a shed ranges from $200 to $30,000, the benefits will outweigh the price in many cases. Sheds offer some expected—as well as some surprise—benefits.

Storage

The most obvious benefit of a shed is typically the additional storage space it offers for storing lawn and garden tools, equipment, or other items, keeping them safely out of the elements. Starting at around $300 for an inexpensive shed kit and running as high as about $15,000 for a custom-built wood storage shed, the structure allows users to store items they don’t have room for elsewhere.

Safety

Many prefab storage sheds or shed kits come with the ability to add a padlock to the doors to help keep bicycles and other pricey possessions safe. Leaving bikes and sports equipment in plain sight is an invitation to thieves. In higher-end sheds, such as she sheds and home offices, a steel entry door can be installed for added protection against break-ins.

Return on Investment 

Whether or not a shed will raise the value of a home depends on many things, including the size of the shed, the quality of the materials, and how well it blends in with its surroundings. You’re more likely to see a return on your investment (ROI) if the shed can be used as an extension of the home’s living space: In fact, you could see up to a 200 percent ROI for the money you spend.

Cost to Build a Shed: DIY vs. Hiring a Professional 

Average storage shed kits, which range from $1,500 to $4,000, can be a DIY project in some cases, especially if the buyer is handy with a few basic tools—usually a drill or screw gun—and knows how to measure and level. Assembling some larger prefab sheds can be quite complex, but a DIYer may be better off hiring a builder to complete it.

If the community building codes require a concrete foundation, which adds between $4,000 and $12,300 to the project, this step is usually best left to the pros. In general, expect to pay around $50 to $100 per hour per worker for either assembly or custom building.

If the shed has wiring, the wiring must be completed by a licensed electrician in many municipalities. This element alone can add $600 to $2,200 to the cost of the shed, depending on whether a new electrical panel is required and how many lights, outlets, and switches are necessary.

How to Save Money on the Cost to Build a Shed

Getting the most benefit for the amount of money spent is important to buyers, and while the average national cost to build a shed is around $2,500, that price will vary based on many factors. The following tips may help save some money.

• Purchase a shed near your home. Shed companies will often deliver free within a certain mile radius but may charge an additional delivery fee if they have to deliver the kit farther. For example, they may deliver free up to 100 miles away but charge a fee, such as $4 per mile, after that.
• Choose less expensive materials. A roof with asphalt shingles runs about $2.10 per square foot, while a tin roof runs as little as $1.50 per square foot, and a metal roof typically runs $5.00 to $20.00 per square foot. Talk to your builder about material options.
• Opt for skids rather than a concrete foundation. While a concrete foundation is the most structurally sound, it’s pricey at about $4,000 to $12,300 to have installed. If building codes allow, consider positioning the shed on pressure-treated timber supports (skids), which can save $1,000 or more.

Questions to Ask About the Cost to Build a Shed

Like any home improvement project, it pays to know as much as possible up front to avoid costly surprises later. Before buying a shed kit or hiring a contractor to build a shed, ask the following questions.

• Who is responsible for installing the foundation? If you’re purchasing a prefab shed kit, the company may provide assembly, but most of the time, the homeowner will need to have the foundation installed separately.
• Do you guarantee the materials, the workmanship, or both? If you order a prefab shed and then hire a contractor to assemble it, the contractor will likely only guarantee the workmanship but not the condition of the materials. At an average national cost of $2,500 to build a shed, it’s worth it to know what is and what isn’t covered.
• Can I DIY some of it? For example, if you’re knowledgeable in framing the vertical walls of a shed but not comfortable setting roof rafters, you may be able to complete part of the shed and have a pro complete the rest. If the contractor agrees, you’ll pay only for the labor needed to complete the details you don’t want to tackle—approximately $50 to $100 per hour per worker.

FAQs

Sheds offer solutions for several issues, ranging from protecting livestock to offering essential space for storing possessions. If you’re thinking about building a shed, you likely have some excellent reasons, but you might also have a few questions.

Q. Is it cheaper to build or buy a shed? 

Typically, it’s cheaper to buy a shed, or at least buy a shed kit and have it assembled rather than have a shed custom built from the ground up. Building a custom shed runs $60 to $150 a square foot, depending on the size and type of material, while having a shed assembled will cost $10 to $20 per square foot, plus the price of the kit. The kit itself ranges from $1,500 to $4,000 on average.

Q. How much does it cost to build a 12-foot by 12-foot shed? 

Building a shed costs an average of $60 to $150 per square foot, so a 12-foot by 12-foot shed would run $8,640 to $21,600, depending on the type of materials.

Q. How long does it take to build a shed?

It will take approximately 8 hours for two knowledgeable workers to assemble a 10-foot by 10-foot shed kit. If the shed needs a foundation or you’re having a custom shed built to your specification, it could take up to 2 weeks or longer to complete the project.