Do Barndominiums Hold Their Value? Resale, Appraisal, and What Lenders Actually Think
Every barndominium builder hears the same concern: "Will it hold its value?"
The Appraisal Problem
The fundamental challenge is the comparable sales approach. Licensed appraisers use CUSPAP standards requiring recent comparable sales. Most barndominiums have few direct comparables.
Appraisers use: Sales Comparison Approach, Cost Approach (most favorable for barndominiums), or Income Approach.
What CMHC Says
CMHC doesn''t explicitly prohibit mortgage insurance on barndominiums, but many lenders interpret guidelines conservatively.
Lender Landscape
| Lender Type | Likelihood | Typical LTV |
|---|---|---|
| Big 5 Banks | Low-Medium | 65-75% |
| Credit Unions | Medium-High | 75-80% |
| Alternative Lenders | High | 65-75% |
| Farm Credit Canada | Medium | Varies |
Factors That Increase Resale Value
- Residential-grade finishes
- Proper zoning and permits
- Mechanical separation between shop and living
- Energy efficiency documentation (EnerGuide rating)
- Well-documented construction
Factors That Decrease Value
- Agricultural zoning without residential designation
- No comparable sales in area
- Non-standard floor plans
- Incomplete conversions
The Honest Answer
Will your barndominium hold its value? Yes — if you build it right.
- Permitted and inspected to residential building code
- Classified as residential on municipal assessment roll
- Residential-grade finishes
- Mechanical separation between shop and residence
- Properly insulated and energy-code compliant
- Complete documentation and engineering
The difference isn''t the building type — it''s the execution.
References: CMHC, AIC, MPAC, NRCan.
