When it comes to adding a shed to your backyard, one of the first considerations is cost. Should you build the shed from scratch using wooden materials, or opt for a prefabricated shed kit? There are pros and cons to each option that impact the overall price tag. Looking at the costs of materials, labor, tools, permits and other factors can help shed light on which is the more budget-friendly choice for your needs.
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Cost of Materials
One of the biggest upfront costs for a new shed is the building materials. For a custom built shed, you’ll need to purchase all the lumber, hardware, roofing, siding, windows, doors and other components individually. The specific materials depend on the size and features of the shed you want to build. Some typical materials include:
- Lumber (2x4s, 2x6s, plywood)
- Roofing (asphalt shingles, metal roofing)
- Siding (wood, vinyl, metal)
- Hardware (nails, screws, hinges, brackets)
- Windows
- Doors
- Concrete or gravel for foundation
- Paint or stain
Since you are sourcing all the materials separately, costs can add up quickly. The larger the shed, the more materials you will need. Even a basic 8×8 ft. shed can cost $1000 or more just for the lumber, shingles, hardware and other supplies.
For a prefabricated shed kit, all the structural materials are included so you don’t have to source individual components. Kits include pre-cut lumber and sheathing, windows, doors, roofing and siding materials. The convenience of having everything pre-packaged helps streamline the process. Shed kits range widely in price based on size, materials and features. An entry-level plastic kit may start under $1000, while premium wooden kits can cost $5000 or more. The all-inclusive materials make it easier to estimate total project costs upfront.
Sample Material Costs
| Shed Type | Size | Material Costs |
|---|---|---|
| Custom Built | 8×8 ft. | $800 – $1200 |
| Prefab Kit | 8×8 ft. | $600 – $1000 |
| Custom Built | 12×16 ft. | $2500 – $4000 |
| Prefab Kit | 12×16 ft. | $1500 – $3000 |
Labor Costs
Another major cost consideration is the labor involved to construct the shed. When building a custom shed, you can either do the work yourself or hire a contractor. Doing it yourself dramatically cuts labor costs, but requires carpentry skills, tools and a significant time commitment.
Hiring a contractor adds convenience but also adds a significant expense, typically charging $35-$65 per hour for construction labor. Even a small 8×8 ft shed would require at least 40 hours of labor for framing, roofing, siding, installing doors and windows, and painting. So for a basic shed, hired labor could easily cost $1500 – $2500 or more.
Prefabricated shed kits minimize the labor required. The pre-cut materials make construction simpler, though some assembly is still required. Kits include detailed instructions and often a homeowner with basic DIY skills can assemble one in 25-40 hours. You may still choose to hire a contractor, but with the easier assembly, labor costs are reduced to potentially $1000-$1500 for a basic kit.
Sample Labor Costs
| Shed Type | Size | DIY Labor | Hired Labor |
|---|---|---|---|
| Custom Built | 8×8 ft. | $0 | $1400 – $2000 |
| Prefab Kit | 8×8 ft. | $500 – $1000 | $1000 – $1500 |
| Custom Built | 12×16 ft. | $0 | $2100 – $3900 |
| Prefab Kit | 12×16 ft. | $750 – $1500 | $1300 – $1950 |
Tools and Equipment
The tools and equipment needed represent another cost factor to weigh. For a custom built shed, you’ll need an assortment of carpentry tools like:
- Circular saw
- Miter saw
- Drill/driver
- Hammer
- Nail gun
- Level
- Measuring tape
- Safety equipment (gloves, glasses, etc.)
In addition, scaffolding or ladders will be needed for roofing work, and potentially a skid steer or excavator for preparing the foundation. If you’re starting from scratch, the costs of purchasing or renting these tools adds up. You may spend $500 or more just to acquire the necessary equipment.
Prefabricated shed kits are designed to be assembled with basic hand tools that most homeowners already own. The following tools are typically all that’s needed:
- Drill/driver
- Hammer
- Tape measure
- Level
- Utility knife
- Ladder
By using pre-cut materials engineered to fit together, you avoid the need for more expensive power saws, nail guns or excavation equipment. The simpler tool requirements help keep costs down.
Sample Tool Costs
| Shed Type | Tool Costs |
|---|---|
| Custom Built | $400 – $800 |
| Prefab Kit | $0 – $200 |
Permit Costs
In many areas, a building permit is required even for a simple storage shed. Permit costs vary by location, but often range from $100-$500. The specific requirements depend on factors like:
- Shed size
- Whether electric will be installed
- If the foundation is permanent
- Zoning restrictions
Acquiring the permit typically requires submitting a detailed plan with specifications on dimensions, materials, electrical systems, and foundation details. This may take additional time and cost for custom designed sheds.
Prefabricated shed kits include plans that meet permit requirements for most areas. This can streamline the review process and minimize costs. However, you will still need to submit the plans and pull the actual permit, which involves a fee in most municipalities.
Overall, permit costs will be comparable for a custom built vs. prefab shed of the same specifications. Any savings from simplified plan submittal for a kit will likely be minimal.
Sample Permit Costs
| Shed Type | Permit Cost |
|---|---|
| Custom Built | $100 – $500 |
| Prefab Kit | $100 – $500 |
Ongoing Maintenance
The long-term costs of maintaining and repairing a shed should also be considered. With custom built sheds, the quality of workmanship impacts longevity. If proper moisture barriers and quality materials are not used, it may be more prone to deterioration and issues like mold, mildew and rot over time.
Prefabricated sheds are engineered for easy maintenance and long-lasting performance. The controlled factory construction often makes them more weathertight. Prefab manufacturers also use specialized treatments and materials to prevent insect damage. This can reduce maintenance costs over the lifetime of the shed.
Here are some estimates for potential long-term shed maintenance costs:
- Annual cleaning/sealing: $50 – $100
- Painting every 3-5 years: $200 – $300
- Roof repair: $100 – $500 after 10-15 years
- Siding/floor repair: $200 – $1000 after 10-15 years
While durability varies, a prefab kit will often have lower maintenance costs over a 10-15 year period compared to a basic custom built shed. Maintenance costs are difficult to predict precisely, but prefab kits are engineered with long-term performance in mind.
Sample 10 Year Maintenance Costs
| Shed Type | 10 Year Cost |
|---|---|
| Custom Built | $1000 – $3000 |
| Prefab Kit | $500 – $2000 |
Resale Value
One other long-term financial consideration is resale value if you eventually sell your home. Storage sheds do add value to a home for many buyers. In general, prefabricated shed kits will recoup a higher percentage of their original costs than a custom built shed.
Reasons a prefab shed retains greater value:
- Has less depreciation due to factory quality construction.
- Buyers recognize the brand name of major kit manufacturers.
- The orderly appearance and standard features appeal to more buyers.
However, sheds of any type are lower value improvements. Even a premium shed kit may only return 50-75% of its original price during a home sale. Still, the superior recoup rate makes prefab kits a better investment if resale value is a consideration.
Sample Resale Value
| Shed Type | Original Cost | Resale Value |
|---|---|---|
| Custom Built | $3000 | $1000 – $1500 |
| Prefab Kit | $3000 | $1500 – $2000 |
Conclusion
When weighing the overall costs, prefabricated shed kits tend to offer more value than building a custom shed from scratch. While material costs for a basic custom shed may be lower, factoring in labor, tools, permit costs and long-term maintenance makes kits the more budget-friendly option in most cases. Kits simplify the process with pre-cut materials engineered for easy assembly. The controlled factory construction also lends to better performance and durability down the road. For homeowners looking to add shed storage on a budget, prefab kits provide savings and efficiency in both the short and long run.