Yurt vs Traditional Building Costs: Full Financial Breakdown 2026

Australia's housing crisis has reached boiling point, with construction costs ranging anywhere from $1,800 to $4,000 per square metre as of 2025. With traditional building now more out of reach than ever, growing numbers of Australians are turning to yurts as a budget-friendly alternative. But do yurts truly offer genuine savings, or are there concealed costs that erase the initial price advantage?

This in-depth financial comparison of the real costs of yurts and traditional building ensures that you can make a fully informed decision for your next building project.

The Cost of Traditional Building in 2026

Traditional building cost continues to increase across Australia, driven by labour shortages, materials inflation, and increasingly stringent compliance requirements.

Construction Costs By Type

According to Real Estate industry statistics, average building costs range from $620 to $3,900 per square metre, with significant variations based on builder type and location.

Builder Types:

  • Volume builders: $1,800 - $2,500 per m²
  • Custom builders: $2,500 - $4,000 per m²
  • Architectural builds: $3,500+ per m²

A small 50m² building traditionally costs between $90,000 to $200,000+ before additional costs.

Other Traditional Building Costs

In addition to construction, traditional buildings have significant additional costs:

  • Council approvals and permits: $8,000 - $20,000
  • Site preparation and utilities: $15,000 - $35,000
  • Professional fees (architects, engineers): $10,000 - $25,000
  • Contingency for variations: 10-20% of build cost

These extras can add $50,000+ to your total project cost.

Yurt Costs: The Australian Reality

Australian yurt suppliers offer a range of costs, with Beyond Yurt offering their premium yurts from $13,000 to $28,000 according to size, which are significant savings over traditional construction.

Complete Yurt Project Costs

Yurt Kit Prices:

  • Small yurts (5-6m): $13k - $15k AUD
  • Medium yurts (7-8m): $17k - $19k AUD
  • Large yurts (9-10m): $24k - $27k AUD
  • Extra large yurts (113m²) like our 12m: Starts at $64k AUD

Our Fully Insulation Modular Yurt Base Costs:

  • 5m - $6,690 AUD
  • 6m - $9,540 AUD
  • 7m - $11,450 AUD
  • 8m - $14,880 AUD
  • 9m - $18,970 AUD
  • 10m - $23,730 AUD
  • 11m - $26,850 AUD
  • 12m - $29,900 AUD

These bases save a tone on labour cost as they are simple to install.

Total yurt project costs typically fall in the range of $20k - $75k which is much less than traditional building. 

Even take our 12m yurt with a whopping 113 square meter foot print, you’d struggle to get something this large for under $150k+ when looking at other building options.

Yurt Running Costs

Yurt outer covers need to be replaced every 7-10 years, at a cost of approximately $2k - $3k AUD depending on size. But frames, doors, and windows can last 20+ years with proper maintenance.

Annual upkeep is significantly lower than traditional building upkeep.

Direct Cost Comparison: 50m² Structure

Traditional Building:

  • Construction: $90,000 - $200,000
  • Additional costs: $40,000 - $80,000
  • Total: $130,000 - $280,000

Yurt Alternative:

  • Yurt kit and platform: $25,000 - $35,000
  • Installation and setup: $8,000 - $15,000
  • Total: $33,000 - $50,000

This amounts to potential savings of 60-75% compared to traditional construction.

Time and Opportunity Costs

Traditional structures have 6-12 months completion time, which has added costs:

  • Temporary housing expenses
  • Lost rental income opportunities
  • Project management delays and stress

Yurts install in 2-5 days, enabling quick occupancy and faster return on investment for commercial applications.

When Yurts Make Financial Sense

Yurts make best financial sense for:

  • Creative workshops and studios
  • Glamping and eco-tourism ventures
  • Secondary accommodation
  • Temporary housing solutions
  • Off-grid living projects

Commercial Returns: Glamping yurts can be extremely lucrative, with installations of $25,000 to $50,000 returning themselves within 1-2 years through tourist revenue.

Limitations and Considerations

While yurts offer significant cost advantages, consider the following:

  • Limited mortgage financing options
  • Potential council approval problems
  • Alternative lifestyle and spatial configurations
  • Lower resale value than fixed structures
  • Climatic considerations for extreme climates

The Financial Decision

Yurts offer excellent financial advantages, with 60-75% savings over traditional building for comparable space. Yet the decision extends well beyond initial costs.

Opt for yurts with priority on affordability, speed, and versatility for certain uses such as studios, tourism, or alternate living. Opt for conventional construction for permanent primary dwellings needing optimum financing possibilities and resale value.

The solution is to match your investment with intended use, regulation by local authorities, and long-term objectives. In the tough construction climate of 2025, yurts are an affordable option with outstanding value for the right applications.

Disclaimer: Prices vary based on location, specifications, and market conditions. Always obtain a number of quotations and professional advice prior to proceeding with any construction project.

Back to News