The Tiny house Blog

Living in a Shed: 15 Reasons Why You Should

Updated on:
June 7, 2024
living in a shed

Image Source: Canva

In recent years, the concept of minimalistic living has taken the world by storm, propelling the tiny house movement into the limelight. However, there's a burgeoning trend that's carving its niche in the realm of compact living: shed homes.

Yes, you heard that right—living in a shed. Before you scoff at the idea, let's delve into the ins and outs of this unconventional lifestyle choice.

Can You Make a Shed Livable?

The short answer is a resounding yes. But, it's not as simple as throwing a bed into a garden shed and calling it a day. 

Transforming a shed into a livable space requires a thoughtful approach. It involves insulation, wiring, plumbing (if you're going for the full suite of home amenities), and, of course, some creative interior design. 

The beauty of this process lies in its flexibility—you can tailor your shed home to your exact needs and preferences, from a rustic retreat to a modern mini-house.

Is It Legal?

This is where things get a tad more complicated. The legality of living in a shed varies widely depending on your location. 

Zoning laws, building codes, and permits play a significant role in determining whether you can legitimately convert a shed into a residence. In many cases, these structures can be classified as accessory dwelling units (ADUs), which are subject to specific regulations. 

The key is to research local laws thoroughly and, in some cases, engage with city planners or a legal advisor to navigate the bureaucratic waters.

Reasons to Try Living in a Shed

Image Source: Canva


One of the most straightforward advantages of shed living is its cost-effectiveness. As housing prices continue to rise, a shed home offers a more affordable alternative that can significantly reduce living expenses and financial stress. If you want to try building a shed yourself, check out this step-by-step plan.

Minimalist Lifestyle

Living in a smaller space naturally leads to a minimalist lifestyle. It encourages you to keep only what you need, reducing clutter and focusing on what's truly important. This approach not only simplifies your physical space but can also lead to a clearer mindset.

Flexibility in Location

The compact size of a shed home means you can set up in a variety of locations, from a friend's backyard to a quiet spot in the countryside. This flexibility allows for a change of scenery or living closer to work or family without the commitment of buying property.

Reduced Environmental Impact

Smaller homes are more energy-efficient and have a lower environmental impact. By consuming less power and producing less waste, shed living is an eco-friendly choice for those conscious of their carbon footprint.

Customization and Personalization

A shed is a blank slate that can be transformed into your ideal living space. Whether you're into a rustic look or a modern aesthetic, you have the freedom to design and personalize your home to fit your style.

Quick Setup Time

Compared to traditional houses, setting up a shed home is quick and straightforward. This means you can move into your new space sooner, without the lengthy construction or renovation processes.

Lower Utility Costs

The smaller your living space, the less you spend on heating, cooling, and electricity. Shed homes are inherently more energy-efficient, leading to noticeable savings on utility bills.

Potential for Mobility

Some shed homes are built to be mobile, offering the unique advantage of taking your home wherever you go. This mobility is perfect for those who love to travel or need to move frequently for work.


Shed homes, often situated in more secluded areas, provide a level of privacy that's hard to find in apartment living or crowded neighborhoods. It's an ideal setup for introverts or anyone who treasures their solitude.

Simplified Maintenance and Cleaning

The smaller your space, the less there is to clean and maintain. This practical aspect of shed living means spending less time on chores and more on hobbies, relaxation, and enjoying life.

Learning and Mastering DIY Skills

The nature of shed living often requires you to become more hands-on with home improvements and repairs. It's a great opportunity to develop new skills, from basic carpentry to decorating.

Proximity to Nature (Depending on Location)

Depending on where you place your shed, you can enjoy a closer connection to nature. This proximity allows for easy access to outdoor activities and can improve your overall well-being.

Potential to Be Off-Grid

For those who truly want to disconnect, shed homes can be equipped to operate off-grid. Using solar panels, rainwater collection, and other sustainable technologies, you can live independently of municipal utilities.

Lower Property Taxes (Subject to Local Laws)

In many cases, smaller dwellings like sheds attract lower property taxes. This can add to the financial benefits of shed living, leaving more money in your pocket for other pursuits.

Opportunity for Creative Space Use

Limited space challenges you to think creatively about storage and design. This can lead to innovative solutions that maximize functionality without sacrificing style.

How Much Does It Cost to Convert a Shed to a Tiny House?

Image Source: Canva

The cost of converting a shed into a tiny house can vary greatly depending on several factors such as the size of the shed, the materials used, labor costs, and the cost of installing utilities and appliances. Here are some estimates:

  • According to Budgetdumpster, the cost may range from $5,000 and $40,000. This includes the cost of the shed, labor, materials, utility connections, and appliances. The cost per square foot, including the cost of the shed, is around $75.
  • However, another source suggests that the average cost for a shed to tiny house conversion is $50,000. This cost can increase with customizations such as installing windows and accessories.

Please note that these are just estimates and the actual cost can vary based on your specific requirements and local market conditions. It’s always a good idea to get multiple quotes and consider all costs before starting a project like this.

People Who Did It

Inspiration is never far off, thanks to the stories of intrepid individuals who've embarked on the shed living journey. Here are people who created a home out of a shed.

Katy and Michael, weary of the endless cycle of renting, seized the opportunity to transform their newly inherited, fixer-upper property into a stunning tiny home by repurposing a shed. Their journey is showcased here:

The Better Together YouTube channel documents a family of six who embraced the tiny living movement by converting an 800 square foot shed into a cozy house. They're also in the process of turning a 336 square foot shed into a tiny house that will serve as their new studio. 

Mariryan and Heather took on the challenge of converting a shed into their dream space. Here's a detailed walkthrough of their transformation:

Another inspiring story comes from a family of six who have creatively turned a shed into a tiny home, embracing a homesteading lifestyle in the process. Dive into their life in a shed-turned-home here:

In 2019, Nick embarked on a unique project by purchasing a pre-fab shed and meticulously converting it into a luxury tiny home over 18 months. Take a tour of Nick's luxury backyard tiny home and see the transformation for yourself here:


In conclusion, living in a shed isn't just about embracing a quirky housing alternative. It's a statement about values, a commitment to living more with less, and a challenge to the conventional understanding of what a home can be. 

Whether driven by financial necessity, environmental concerns, or the simple desire for a change of pace, the journey towards shed living is as much about the destination as it is about the transformation along the way.

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