Saving & Spending Budgeting & Expenses

10 Creative Housing Alternatives That’ll Seriously Reduce Your Cost of Living

Don't underestimate the power of these alternative accommodations.

 Exterior of a house with a basement
Updated March 16, 2025
Fact checked

Home prices and mortgage rates are offering little relief to buyers. As housing costs continue to rise, people are looking for more affordable alternatives to the classic single family home with a 30-year mortgage.

One of the smart homeowner moves you could make right now is looking into housing options that might seem unconventional but will allow you to save money.

Want to find a way to live both comfortably and cheaply despite skyrocketing housing costs? Here are options that will help you keep more money in your wallet.

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Live in a mobile home

Speedfighter/Adobe modern static caravan on campsite

Mobile homes may not be as cheap as some other housing alternatives, but at an average of $148,000, they are still significantly less expensive than a traditional home. You'll also have the option to include as many amenities as you like, making this a comfortable, welcoming environment.

Work as a live-in nanny

fizkes/Adobe Babysitter and child

Being a live-in nanny comes with some perks — specifically room and board. If your priority is not spending money on housing right now, then this could be a wise opportunity to pursue.

Move into a co-housing community

Kristian/Adobe family admiring their new apartment

Co-housing communities are often places where some spaces, like kitchen and living areas, are shared, while bedrooms and bathrooms are private. These are often less expensive than traditional apartment buildings. Plus, you may save on costs related to childcare or food prep if there are others to help out.

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Live in an RV

dvande/Adobe traveler trailer camping in the woods

There's always been a little bit of romance in living the van life. In reality, this takes a commitment to minimalism and an ability to plan ahead when it comes to where you're staying. But, considering you can buy a used RV for about the same price as a used car, this is an effective way to save money on putting a roof over your head.

Rent your spare bedroom

karagrubis/Adobe paper for rent sign

Make your mortgage more affordable by renting out a spare room in your house. This can help cut down your housing costs by having a roommate pay a portion of your mortgage. Don't feel bad making them pay half if their bedroom is the same size as yours – you both have equal rights to the common areas.

Live in a relative's basement or guest house

Iriana Shiyan/Adobe chic basement living room with wet bar

If you have a generous friend or family member who's willing to let you stay with them for a period of time, that can be the best way to cut your housing costs. They may not charge you market rate — or charge you at all — and you can focus on bulking up your savings in the meantime.

Move into a tiny home

lowphoto/Adobe Tiny gray house on wheels

Putting down roots with a tiny home can be more affordable than purchasing a house. You might find a small plot of land that's perfect for a 300-square-foot house, or you might have a relative who's willing to let you make a home on their property. Typically, tiny homes will run between $30,000 and $60,000.

Turn a bus into a home

sonya etchison/Adobe School Bus in Neighborhood

Rather than purchasing a traditional mobile home or RV, you can also build your own home on wheels from scratch. For savvy DIYers, this is a cost-effective option that can be done by picking up a used school bus for cheap. Expect to spend up to $10,000 on the bus (but possibly much less) and up to $30,000 on the conversion.

Rent an ADU

coralimages/Adobe Amazing guest house in the back yard.

Whether it's a guest house, a pool house, or a converted shed, renting an accessory dwelling unit (ADU) on someone else's property can be a cost-effective way to find a comfortable home. You may find something on a large piece of land with relatively low rent, so you can focus on hitting your savings goals and someday be on the other end of the transaction.

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Live on a house boat

lenaivanova2311/Adobe houseboat on a river in a early sunny morning

Take to the sea for a more inexpensive way to live. You can likely find an affordable house boat for under $10,000. Then, you'll just need to find a boat slip to dock it. This could make your monthly housing expenses incredibly low, and you'll have the freedom of following good weather and good tides.

Bottom line

Andy Dean/Adobe Sold Home For Sale Sign

In the United States, 62% of Americans are homeowners. If you already own a home and don't need to pursue cheaper living accommodations, then another savvy homeownership move is to tap into your home equity to improve your home. This way, when you're ready to sell your home and move into a cheaper space, you'll be able to get the maximum dollar amount from the sale.

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