Do you envisionhaving a houseone day? Or perhaps you’d prefer to rent a comfortable, relatively roomy apartment in a sought-after area. Both goals are increasingly out of reach for many. As a result, unconventional housing solutions are gaining traction among those who don’t see conventional homes as attainable in the near future.
The medianhome pricein the United States sits near $350,000 — about $100,000 more than it was five years ago. Rent varies greatly by city, but the most recent Consumer Price Index from the Bureau of Labor Statistics shows shelter costs rose 3.7% in the last year alone.
So, what can you do when rent spikes beyond your means and buying a $350,000 house is out of reach? We’ve outlined several alternative housing paths that might suit you. We’ll explore tiny homes, RV living, houseboats, shipping container residences and more — all options that often come with a much smaller price tag.
What Counts as Alternative Housing — and Why It’s Growing
Alternative housing refers to living arrangements outside the standard model of buying a single-family home or renting an apartment. With rent and mortgage costs rising, everyday items getting pricier from inflation, and student loan andcredit card debtnear historical highs, many people find saving for a down payment difficult if not impossible.
Coupled with more flexible remote work and a growing range of low-cost housing choices, folks are seeking nontraditional routes. Many of these options offer perks beyond affordability — some people preferdownsizingwith a tiny home, while others like theflexibilityof living in an RV.
1. Tiny Homes: Compact Living, Big Financial Benefits
The mediansquare footagefor a single-family dwelling was 2,417 square feet at the close of 2024. Tiny homes, by contrast, are generally under a quarter of that area, making them a good fit for people who don’t need much room or many possessions.
Even though living areas are smaller, savings can be substantial. Besides a lower purchase price, tiny-home residents often pay less for utilities and tend to buy fewer items due to limited storage. Maintenance costs also drop because there’s simply less to upkeep.
On average, tiny homesusuallyrange from about $30,000 to $60,000 — far below the expense of a typical house.
2. Houseboats: Waterfront Living for Less
High-end houseboats can rival a house’s price, but affordable options exist, particularly in the used market. Thislisting siteshows reasonable houseboats for roughly $10,000, while some models climb into the hundreds of thousands.
Beyond a lower purchase price, you usually avoid property taxes, though docking fees apply and vary by marina. Expect annual docking costs in the ballpark of $2,000 to $4,000, depending on location. Maintenance is required, but generally less than what a house demands.
If you enjoy life on the water and learn basic boat upkeep, this could be an excellent choice. Just remember to prepare for severe weather and have plans for storms or hurricanes.
3. RV Living: Mobility and Lower Costs
Living in an RV lets you embrace a mobile lifestyle. These compact, wheeled homes are much smaller than a standard house and often far less expensive. Depending on the model, RVs can cost from roughly $20,000 to well over $100,000. Don’t forget campground or RV park fees if you don’t own a place to park; those typically fall between $500 and $1,200. Fuel expenses are another major factor if you move frequently.
While campground fees can add up, you won’t be paying a mortgage, and you’ll have the freedom to relocate. That makes RV life appealing to people with remote jobs or those who enjoy traveling.
4. Shipping Container Homes: Sturdy and Cost-Effective
Building a home from shipping containers usually requires you to have land — either land you own or someone else’s permission to use. Buying land can be costly, but even with land costs, a container build often remains far cheaper than a conventional home construction and can be completed more quickly.
Be sure to confirm local zoning and building codes where you want to construct one; many municipalities have specific rules about container dwellings.
When permitted, these residencestypically costin the range of $20,000 to $50,000, though prices rise with size and amenities. They represent a way to avoid multi-decade mortgages and can be ideal for those aiming to live off-grid.
6. Yurts: Simplified Living With Low Expenses
Yurts are circular structures that resemble upscale tents but are much sturdier. Historically used by nomadic communities in Central Asia, modern yurts can handle harsh weather when constructed properly. Like container homes, you’ll need land and the necessary permits to set one up legally.
Expect to spend roughly $10,000 to $30,000 for a yurt, depending on build quality and features. There are cheaper and pricier options, but lower-cost models deliver more basic accommodations.
7. Barndominiums: Rustic, Roomy, and Unique
Barndominiumsare essentially barns designed for living — a middle ground between a simple structure and a full conventional home.
The term fuses barn and condominium. These residences are usually constructed with steel or metal framing and appeal to those who prefer expansive, open layouts.
Coststypically rangefrom about $130,000 to $320,000 depending on customization and locale. As always, verify local codes and ensure the design suits your climate, especially if you face heavy snow or hurricane exposure.
8. Coliving: Split Costs, Share Community
Think living with multiple strangers to reduce housing costs — it might bring back memories of dorm life, and that’s a fair comparison.
Coliving involves unrelated people sharing a residence, with common areas like living rooms and kitchens while maintaining private bedrooms — sometimes private bathrooms, too.
Although the idea isn’t new, it has become more popular among budget-conscious young professionals in cities, and you can also find coliving setups outside major urban centers.
Essentially, it’s having many roommates, which can significantly lower expenses when bills are shared. If you and your housemates are comfortable sharing communal areas, coliving can be a practical solution.
The major drawback is coordinating responsibilities: dividing bills, chores and maintenance requires clear planning and communication.
Is Alternative Housing a Good Fit for You?
Buying or renting traditional houses and apartments aren’t the only routes to secure housing. Numerous alternative options exist. While cost savings often drives interest, other advantages include speedier moves into housing, greater flexibility and the chance to embrace minimalist living.
Evaluate additional expenses that might erode savings — for instance, docking fees for a houseboat — and confirm local rules that apply to your chosen dwelling type. Make sure you’re mentally prepared for a potentially substantial change in lifestyle. After you do the math and learn the regulations, you’ll be ready to pursue alternative housing options like tiny homes, RVs, container builds or even anearthshipif that fits your goals.
FAQs: Alternative Housing
Which options are cheapest up front? Tiny homes and yurts often come in under $30,000 up front. But the best bargain depends on your region, long-term plans and whether you already possess land.
How do financing options work? Some builds, like barndominiums, can qualify for specialty loans or FHA financing. Others, such as shipping containers and tiny homes, may require personal loans or cash purchases.
Are these housing types legal everywhere? No. Zoning and building codes differ widely. Always check local regulations before buying or constructing any alternative housing.
Can you live full-time in an RV? It varies by preference, but many people do live full-time in RVs or converted vans. Full-time life requires ongoing maintenance, mail solutions, healthcare planning and comfort with a smaller space.
How much can you save? Savings vary by choice, but many alternatives reduce housing expenses by 50–70% compared with traditional mortgages. Additional savings come from lower utilities, reduced maintenance and fewer property taxes.
Alex Mercer is a senior writer at Savinly. Freelancer Dennis Lynch contributed to this report.
