How to build a $20,000 house

The building on the right it part of the $20k project, and is designed to look modern & stylish.

An American architecture & design studio called Rural Studio have set their sights on a simple goal: to make a house that people below the poverty line can afford.

Their efforts are a good example of the power of design and simplicity, by building with affordable materials and simple techniques, they were able to design a building that costs a little less than $20,000 US (That’s about $26,000 Australian dollars), including labour costs.

The idea of designing for those in need has been called ‘Social justice’ architecture, and has received particular interest and success after major disasters have flattened entire communities (hurricane Sandy alone caused $62 billion in damages to property).

But smaller, cheaper houses also make sense – there’s less waste, they’re more environmental and they save money.

Rural Studio have been working on their $20,000 house for over four years, and they’ve learnt a few interesting things:

1. 1. $20,000 dollar houses don’t stay that cheap for long.

Once the houses were built, they often went up in value, sometimes to double the original price. House and land is seen as so valuable that the exact material costs of the 20k houses weren’t even similar to their resale value.

What that teaches us is that intelligent, simple building can generate more value than the amount of money you need to put in.

2. 2. Good design is a necessity.

Every tiny aspect and detail of these buildings have been scrutinised and analysed to optimise the simplicity of the building. That’s what allows the price to be kept low and the installation simple & quick.

Homes also have to look good. Just because the house is cheap doesn’t mean that it can’t look good. Rural Studio have made enormous progress between their first and second model in making the building look good, with a darker exterior that disguises the simplicity of the materials.

3. 3. There are more challenges than just getting it built.

The 20k home project came to involve more than just the instructions for assembly. It also involved a guide on how to convince your council to allow such a small house, which are built on foundations that don’t fit neatly into councils’ expectations.

Getting passed the unconventional nature of the design is often a struggle for authorities that don’t know how to classify it.

What exactly do they mean by $20,000?

This is an interesting question because there are always difficulties in nailing down costs. The 20k refers to the price of the building after installation costs – that’s $12,000 for materials (this is still in US dollars) and $8,000 for labour. So, theoretically, if you were hand with a saw and hammer, you could put this house together for about $16,000 Australian dollars.

Realistically, the price range varies, but the concept holds up: you don’t have to build a regular bricks and mortar house to live comfortably, with good design and good style. Start by finding a company that building simple structures and ask for their opinion – how can they work with you to complete a structure that minimises wastage, looks good, and is environmentally conscious. It’s all about finding what’s possible.

Find out how much it costs to build a shed or garage with our calculations & estimates.