Building a Backyard Office Shed

The year 2020 caused a lot of transformation in our world, and one of those transformations is making millions work from home. As such, the question ‘does building a backyard office shed cost so much money has been flowing from the lips of thousands since then.

Though many have resumed working in their offices after COVID-19, many companies now allow their workers to work from home. These individuals usually must split themselves from spouses and children to focus on their work. However, since covid, a lot has changed. More and more people now consider working from home than working from an office.

Unfortunately, only a few houses have extra rooms that can be converted into offices. Thus, we’ve seen how kitchens turned into conference rooms during zoom meetings. Fortunately, you have a better option outdoors!

Since many homes don’t have extra rooms, more individuals are considering constructing a backyard shed. Though constructing an outdoor shed is far cheaper than taking on a full-scale project, it’s still an expenditure and needs a lot of time and energy.

Building a backyard office shed doesn’t usually cost a lot of money, and when compared to its advantages, the amount is worth it. Follow us for a breakdown of how much it will cost to build an outdoor shed. Let’s go!

How Much Does it Cost to Build a Shed Office?

According to the Home Advisor guide, a backyard shed costs between $1500 to $4000, depending on the materials used and how the project is carried out.

For reference, an average work-from-home office has a footprint of about ca. 28 m². The amount mentioned above doesn’t include labor and decorating your office shed.

Overview of How Much It Costs to Build an Office Shed

The amount you’ll spend building a backyard shed depends on five major factors. One of these is the price of buying basic building materials like steel and wood frame. It is within this factor that square footage will fall.

The second factor is work pay, while the third is insulation, special floor, roofing materials, windows, and doors. The fourth factor that affects the cost of the building is shipping, while the last one is getting a building permit.

As you’ve seen, all these five factors have, one way or the other, tributed significantly to the overall price of setting up an office shed. However, you can choose to buy a fully assembled office shed to save money you’d have spent on labor. Also, if you purchase only the office shed shell, you’ll be able to save money you’d have spent on extra features like bathrooms.

The Breakdown of Costs

As said above, if you want to buy an outdoor office, you’ll pay between $1500 to $4000 for shells in the shed kit. You’ll spend about $10,000 to above for a fully fitted office shed. Also, the size and design of the shed will determine if you’ll require a building permit or not.

Also, the more you add square feet, the more likely you need a contractor. Adding extra features like electricity and plumbing will also cost you more. Let’s see how much it’s likely to cost you to build a backyard shed:

Which one is better: Building or Buying a Shed

The price of the materials you’ll use to build your office shed depends on what you want. The shell you choose for your backyard office will also affect the shipping price. Mostly, it’s cheaper to ship metal or plastic shells.

However, buying the materials you need for your projects, like doors, windows, floor, roof, and frames, and then constructing the shed on your own will likely cost you less.

Purchasing a project plan online or in a local store is also cost-efficient to making an office shed in your backyard. This studio shed kit will likely cost you between $500 to $2000. This amount depends on the size, the number of doors, and windows, the type of flooring, and other features.

Labor: Hire or Do it Alone?

If you have a tight schedule, you can choose to hire a contractor to help you make your office shed. However, they’ll charge you nothing less than $30 per hour or any amount per square foot of their time. However, the advantage of this is that the money you pay a contractor is often tax-deductible, according to the IRS. While if you do the work on your own, it isn’t tax-deductible. If you want to customize your shed, you’ll need the service of one of the more professional builders.

Extras: Do I need Extra Features?

If you live in a location where the weather is mostly sunny, you’ll need to install insulation. Also, you’ll choose between having plumbing and electricity in your office or just electricity. Having your office shed built with these additional features will cost you more. For example, you can spend up to $200 on insulation, while electricity and plumbing can make you need more permits apart from the money you’ll spend adding them.

Also, adding electricity and plumbing is something you can only do on your own. You probably need the service of an electrician and a plumber. This will also cost more money. Let’s not talk about bathrooms, which can cost more than you think, especially if you decide to construct them separately.

Do I Need a Building Permit?

Whether your office shed will need a permit or not depends on your location. It also depends on the extra features you install, like electricity and plumbing.

Therefore, you might require a building permit to add electricity and plumbing to your backyard shed.


Is building an office shed worth it? You’ll likely ask yourself this question after finding out you’ll spend a lot on setting up this space. But trust me, it’s worth the cost if you work from home. It will give you the feeling of an off space, and you won’t be distracted by your children, spouse, or guests.


  • Emma Clark

    Hi there! My name is Emma Clark, a part-time interior designer, house flipper, and full-time mom. This blog is the fruit of my extensive experiences as an interior designer and home improvement enthusiast. More so, I'm here to share with you a lot of great ideas on what you can do to make your home into a masterpiece: all cost-effective and amazingly creative.