I recently had a fantastic chat with Steven Spies from Precision Steel Framing, diving into the world of shed houses! Steven brings over 20 years of industry experience to the table, and he was incredibly generous with his time and sharing his expertise.
There was so much gold in our conversation that we’ve split it into three articles – The Shed House Series! Each one is packed with fantastic insights into shed houses – an affordable yet oh-so-stylish way to make your dream home a reality.
So buckle up, dive in, and ENJOY! 🎉
What is a Shed House?
Okay, so a shed house is simply a metal frame structure designed as a Class 1 building for residential living, styled after a standard shed.
It features metal cladding on the outside with either gable or skillion roofs, aiming for open-plan interiors.
It includes all the essentials of a home, like insulation, plumbing, and electrical systems.
That’s the simplest definition.

Does a Shed House Differ from a Standard Shed?
Yep, absolutely. The main difference between a shed house and a standard shed lies in compliance and design.
Standard sheds are built for storage and don’t need to meet residential standards, whereas a shed house must comply with all the regulations required for a regular home.
That means proper building plans, engineering designs specific to the site, insulation, energy efficiency, and allowances for plumbing and electrical systems. The structure is upgraded to meet residential compliance.
Modern shed houses are even designed to meet the seven-star NatHERS energy ratings, ensuring high levels of energy efficiency, which standard sheds don’t even come close to meeting.
What Triggered the Evolution of a Shed House?
The cheapest versions of shed houses have been around for a long time, but people used them very differently.
They were a quick, cheap way to get into a building because they were often purchased as a standard shed then retro-fitted after the fact. The owner would build the shed as a standard building so it was quick to lock up stage and then along the way the owner would work with the council to achieve minimum requirements to be upgraded to a class 1 house.
But that’s changed – shed houses must now meet the same requirements when going through Council, which is a good thing.
Before, someone could build a shed, throw in some walls, and skip all the Council hoops initially – like plumbing and slab designs, which wasn’t fair to those building compliant homes.
From a streetscape point of view, you had people selling non-compliant shed houses for the same price as real houses, which was misleading to buyers. This shift was much needed, though some people still try to bypass Council by calling it a shed or granny flat.
The real change, though, is in design – steeper roof pitches, modern looks, and open living spaces. People are craving something different now, with many wanting a sea change or a move inland for a simpler, eco-friendly lifestyle.
It’s a huge shift in thinking, especially for those coming from Sydney or Melbourne, looking for a more affordable, sustainable way to live their dream life.
Was it Councils then that stepped in to tighten regulations and bring shed houses up to the same compliance standards as regular houses?
Yeah, and another key part is energy ratings.
Whether it passes or fails, a shed house being put through as a proper residence has to go down the same paperwork trail as a house, requiring building designers, energy designers, and other professionals.
Proper plans mean proper engineering, and a lot of this has been driven by energy efficiency requirements, which are complex to calculate.
For example, I spoke with a building designer in Maryborough (Qld) who had designed a stunning home on a hill with 360-degree views. He kept energy efficiency in mind with airflow, ventilation, and large wrap-around verandas to offset the glass the client wanted.
In theory, it should’ve passed easily. But once the energy analysis was done, it failed because of the amount of glass. To meet compliance, they had to upgrade to higher-performance glazing, adding $45,000 to the cost.
The designer noted that the bifold doors would often be open, so the upgrade achieved compliance but didn’t make a real-world difference in energy savings.
This shows how complicated the process has become – it’s down to appliances, roof color, wall color, and more.
And this isn’t just for shed houses, it applies to all homes.
While I fully support sustainability and good design principles, there’s a lack of common sense at times, especially when the consumer might only save $130 to $200 a year in power for these significant upgrades.
Extra insulation and other building compliance upgrades have added substantial amounts to the price of a new home, some homes nearly $100,000 to the cost, just to save $200 a year in energy savings and make it a bit more comfortable inside.

When it comes to Council approval, in your experience, is it easier, or the same, to get a shed house approved compared to a standard residential home?
It’s absolutely the same as a conventional home. Nothing is different, nothing changes, nothing's faster or easier at all. It is identical.
And that's why I changed the word from shed house to modern house. Because once they say shed house, it's a real misconception that it’s easier to do and that’s not true.
You mentioned earlier that city dwellers are looking for that sea or tree change so does a modern house offer greater affordability?
Yeah, it's about both affordability and the look of the building. Is it still affordable? Absolutely. It gives people a quick, easy way to reduce costs and improve their situation, which is a big driver now.
Plus, there's better use of space. You think about conventional homes with big hip roofs, mine's the same, and I lose sleep over all the unused space in my roof. I could have a home gym or a spa room, but it's all full of trusses.
People are also moving towards minimalist living – simple and efficient.
Okay, so is it faster to build than a traditional residential home?
Shed houses are faster to build because of their simple design – steel is lighter, cheaper, and allows for bigger spans with fewer materials, saving consumers money.
Builders also don’t need heavy machinery on-site as early, and the prefabricated components and simplified designs speed up the process.
Metal cladding helps get the structure locked up in a few days, without waiting for various trades.
So yeah, it's still faster and cheaper, and a great way to get a stylish, affordable home.
So what would be your advice for an owner builder who’s looking into building a shed house or a modern house?
I’ll keep it simple.
Often people will want to know the price of a shed house but haven't really given any thought to their layout, building size and what they need to suit their living requirements. Even a simple sketch on a piece of paper will be helpful to your shed house provider. Just walking in the door and saying I need a 4 bed, 2 bath is very open ended and requires more thought and planning.
Here’s my further advice:
1. Plan for compliance from the start
It'll save you time and energy. Anyone can go to a shed company and get a price, but that's the worst thing to do. Talk to people who know about compliance right away. If you're looking at stock standard plans, I can guarantee they're not relevant anymore. Use them as a starting point, but plan for compliance by working with knowledgeable people.
2. Even consider getting preliminary plans early
For $600 or so, a building designer can give you a clear direction.
3. Materials are key too
Get suppliers who know about the necessary upgrades, right down to the frames. If you want open-plan living, flat ceilings, or other specific features, make sure you’re working with suppliers who can deliver.
Standard shed builders don’t always know shed houses, so finding the right people is crucial.
4. Simplify your plan
Have a clear vision, and consider prefabricated systems to save time and money.
5. Soil tests should be done early
Without knowing your soil type, no one can give an accurate slab cost.
6. Be organised and prepared
Think about long-term sustainability, like solar panels and appliances. Check out options like energy-efficient appliances and lighting early, even if you’re not making final decisions yet.
In short, careful planning, quality materials, and working with people who know what they’re doing are essential. Prefabricated systems can be a great future option as well.
A very big thank you to Steve and watch this space for the next two articles in The Shed House Series
ABOUT PRECISION STEEL FRAMING
Precision Steel Framing (PSF) is a 100% Australian-owned company based in Toowoomba, supplying high-quality steel-framed sheds, carports, garages, shed houses and storage solutions. Starting locally, PSF now serves customers Australia wide with steel shed kits and shed homes.
With over 50 years of industry experience, PSF delivers high-quality, customised solutions for their clients.