72 Alternative Housing Options & Ideas to Save Money

You’re not alone if you’ve ever dreamt of owning a home without drowning in debt. Many seek alternative housing solutions that won’t break the bank.

Just Google “Affordable Housing” and see it all over the news. It is not a secret everything is expensive. While some can’t keep up with the cost of living, others want more life and less house to keep up with.

From HudUser.gov, households should spend 30 percent of their income on the costs associated with housing.

We’re here to guide you through various realistic and cost-effective housing ideas that can turn your dreams of homeownership into a reality.

This article will help you get some cheap alternative housing ideas to consider when looking for a place to call home.

We hope it is a jumping-off point and is used to help you think outside the box.

Disclosure: This post may contain affiliate links, meaning I can earn commissions. If you decide to purchase through my links, it is at no cost to you.

What is affordable or Alternative housing? 

Alternative housing is a non-traditional and innovative approach to residential dwellings that deviates from conventional methods and materials.

This is where affordability comes into play. You can save a ton of money by creating housing using recycled materials or less “normal” spaces.

This article is a lot of fun to write as a real estate agent because alternative housing is one of my passions. Sharing all I have learned over the years is an honor I am glad to have.

With the average sales price of a house sold in the US going from above $200,000 in 2000 to over $375,000 in 2020, alternative housing options have become a hot topic, and for good reason.

I pulled this graph to demonstrate what the article says about the Average House Price by State. You can click on the graph to see how the numbers change over time.

It is hard to believe, even being in the industry daily. Here is where the options to save a little money come in.

What are some Alternative Housing Options

1. Tiny Houses

The tiny house is one of the most common alternative home today. These houses range in square footage and go up to 399 sq ft. The Tiny House movement strongly focuses on simplicity and minimizing material possessions. 

With their minimalistic design and lower maintenance costs, these houses offer an affordable and sustainable housing option that promotes a clutter-free lifestyle.

Things like solar panels and composting toilets allow the structures to live off-grid.

Many tiny homes are built on wheels, allowing for more flexibility and mobility, while others are built to be permanent. Despite their small size, these houses can provide all the necessary amenities, including kitchens, bathrooms, and comfortable living areas. 

Personal Thoughts: I LOVE TINY HOMES! Everyone who knows me can attest to this. The obvious glaring benefit to a smaller house is less space means less energy to heat and cool your space.

I went to a Tiny House Festival near my hometown and was amazed by the possibilities of a small space. Tiny Houses are an absolute favorite of mine!

I will own a Tiny Home one day! I jump at the opportunity to attend a Tiny House Festival.

Keep reading to see pics from our adventure.

2. Shipping Container Home

Shipping containers are an excellent alternative for those seeking a housing alternative. Combining as many containers as you want to create your space is the best part. Imagine a Tetris-like game of connected containers.

These shipping containers are designed to transport goods but can be converted into comfortable living spaces with a bit of imagination and creativity. 

A shipping container home is made from recycled steel and can last generations. The one above is inspired by a home on HGTV’s Tiny House, Big Living. 

There are even shipping container villages popping up. It is exciting to see!

Personal Thoughts: These are plain cool. The structures you can build with these metal boxes are beyond amazing.

Businesses are now using these structures for commercial use as well. Two thumbs up from me!

3. Prefabricated Homes

Prefabricated or prefab homes are a faster and cheaper option for sustainable living. These homes can be designed and made off-site, reducing the building time and minimizing construction waste. 

Boxabl units offer a streamlined and cost-effective approach to housing.

These homes can be quickly assembled on-site, minimizing the time and expenses associated with traditional construction methods.

The Casita option by Boxabl is enticing. Watch it come together and unbox into a 375-square-foot living space.

An Instant Home!

Personal Thoughts: I am all for this option. This is the easiest way to move into a house on the same day, as the Boxabl website indicates. It is delivered to you and unpacked in an hour. These structures can be customized to your needs and be used for disaster housing relief. 

4. Accessory Dwelling Unit (ADU) or the Granny Flat

Accessory Dwelling Units (ADUs) or Granny Flats (for our purposes, let’s call them ADUs for short) are excellent for those looking for minimalist housing or a way to downsize in-house.

These additional living units can be constructed on existing properties, allowing homeowners to maximize their space and generate rental income. 

By building an ADU, individuals can avoid the high costs of purchasing or renting a separate property, ultimately saving money in the long run.

ADUs provide a practical and affordable way to create additional housing options while offering homeowners potential financial benefits. While an ADU is more of a catch-all for many structures, they typically include tiny houses or shipping container homes.

ADUs have become well known in the California area, where housing is known to be at the highest in the country.

Personal Thoughts: When I think of an ADU, I see it as an attractive option to have a loved one nearby and still allow their own space. We almost got an ADU for my daughter, and then she decided to go to college out of town.

Living in an ADU or even renting it out is very appealing. 

5. Manufactured Homes

Mobile homes, now called manufactured homes, are affordable housing options. Since 1980, when Congress approved changing the term “mobile home” to “manufactured home,” the manufactured housing industry has grown in size and quality. 

They are built to conform to Housing and Urban Development (HUD) codes, which ensure safety and quality.

A manufactured home provides cost-effective and convenient housing solutions that meet various needs and budgets. 

Personal Thoughts: The manufactured home has come a long way and will continue to grow in quality. They have made leaps and bounds compared to the original models decades ago. I have lived in a mobile home and have been inside plenty of mobile homes. A manufactured home is a perfect option to save on expenses and not have to sacrifice space.

6. Modular Homes

Modular homes are a great alternative to traditional homes. Because these homes meet local and state building codes, they qualify for great financing.

These homes are designed and built in sections off-site in a factory. This process reduces construction material waste and can be more efficient than traditional on-site construction. 

Modular homes are typically energy-efficient, reducing the need for central air and heating. They offer flexibility in customization and can be designed to be indistinguishable from site-built homes.

Personal Thoughts: The first house I ever bought was a modular home in 2008. It took me forever to decide on a floor plan. We underwent different floor plans for several months until I committed to one.

I loved that house. It was well-built, and once I decided on the one, it was delivered in a few weeks. I should have kept it; it would have almost been paid off. 

Modular homes have come a long way now with things like awesome porches and the ability to combine three units to customize the space. I would do it all over in a heartbeat. 

7. CrossMod Homes by Clayton Homes

CrossMod Homes by Clayton Homes offers an innovative housing solution, merging the affordability of manufactured homes with the design flexibility and aesthetics of traditional site-built homes, like a regular roof line.

These homes are constructed off-site and transported to their location, where additional features, such as a garage, are added on-site. 

CrossMod homes can appraise like site-built homes using site-built comparables, and financing options can have several advantages over loans secured by standard manufactured housing. 

This means you can blend cost-effectiveness, customization, and contemporary design in a home. 

Personal Thoughts: I am intrigued by this option because it blends the best of two worlds by creating affordable options for those who would not consider things like a Tiny house or living in a converted shed. I love that the house is energy-efficient and built on a permanent foundation. This is a win in my book!

8. Skoolie Conversions

Skoolie conversions have gained popularity as a creative way to transform retired school buses into unique living spaces.

Skoolie Conversions offers flexible and affordable housing options for those seeking an adventurous lifestyle.

Many Skooklies mount solar panels on the roof to soak up the sun’s rays for their energy needs.

Personal Thoughts: I saw many converted school buses at the Tiny House Festival. One young man, Michael Fuehrer, known as Navigation Nowhere on YouTube, lives full-time in a Skoolie.

It would make my heart happy never to see an abandoned school bus rusting in a grassy field again and to have everything converted to a place to call home.

Here is a video of the bus we toured at the Tiny House festival. It is incredible how spacious it felt in person.

9. Barndominiums

Barndominiums, a blend of “barn” and “condominium,” offers a unique and affordable housing alternative with a rustic appeal.

These structures typically feature an open layout, with living quarters and functional spaces like workshops or storage areas.  

Personal Thoughts: This option is both overwhelming and amazing. You can go as small or as large as you want – which I much approve of. I love seeing the Barndominium, which has a shop attached or a recreational room.

My brother swears he will build one of these in the future.

The thought of having a small Barndominium is also appealing as the metal structure is durable and can be designed creatively. Perhaps the combination of a tiny home and a barndominium.

I could be on to something.

10. Shed Conversions

Individuals can create cozy and functional homes by converting ordinary backyard sheds into livable spaces.

Many people recognize the Home Depot Tuff Sheds when considering converting a shed into a livable space.

Those sheds are becoming increasingly popular, especially the 2-story shed, which gives even more freedom to live smaller.

Personal Thoughts: My kids keep asking me to do this for them so they can live in the backyard. I have seriously considered it. I have gone into the shed shell and visually imagined what it would be like to be inside a finished one. 

It would not be much different than my first apartment. Aside from looking like a shed on the outside, all the images I have seen of the finished product could convince me to do this.

11. Geodesic Dome

You have probably seen these and didn’t know what they were called. These are funny-looking houses I saw growing up. My cousin’s dad lived in one. They were the most remarkable thing.

It felt like something out of Super Mario Bros.

Geodesic domes are becoming popular for homes because they have many advantages. Their unique shape makes them solid and stable by evenly spreading the weight.

Geodesic domes are also energy-efficient because their round shape reduces heat loss. Inside, they have plenty of space for different floor plans and creative designs. 

Personal Thoughts: I don’t want to be the roofer to have to install those shingles! Otherwise, I have always been fascinated by these structures. I never got a chance to go inside one, but

I have studied the floor plans a bit and love the creativity in the design. I could stare at the ceiling for hours. It is so interesting.

12. Living off the Grid with RVs

Living off the grid in an RV is for those who enjoy a nomadic lifestyle.

RVs are an alternative housing option as they can run using solar panels or generators. RV living allows you to move around and explore different parts of the world while having your own living space.

Personal Thoughts: Full-time living in an RV is very appealing to me. I lived in an RV parked in an RV park for a few months while waiting for a house to be built, which was delayed due to the destruction of Hurricane Katrina.

It was five adults, including myself, my niece (less than ten years old), and my infant daughter living in that RV. It was cramped but forced us to be creative, keep only what was necessary, and go outside more. 

We did not travel in the RV as it was just on site of the build, but I can assure you, if an RV showed up in my driveway right now, I would get in and not look back.

I have also had clients live in RVs in between houses.

13. Log Cabins

While not necessarily “alternative,” modern log cabins can be sustainable and energy-efficient. Log homes offer a unique blend of aesthetic appeal and practical benefits.

If you build it yourself, it is like Real Life Lincoln Logs! 

Personal Thoughts: Log cabins appeal to me. Seeing the walls of a home built with entire trees is impressive. I love the rustic feel of them.

I remember watching The Wilderness Family as a child and wishing I could live in a log cabin when I grew up. They are just a solid structure and have a calming effect on people. 

14. The Silo Home

Silo homes may turn heads when used as a creative housing alternative. These homes are made out of farm silos that are no longer in use.

Silos are also environmentally friendly since they are designed to withstand extreme weather conditions and are built using sturdy materials such as concrete and metal.

Personal Thoughts: I love the silo home because it forces you to design the space creatively. The silo homes remind me of when I visited a Boot House in Huntsville, Texas. The main structure had a circular shape, and I just loved the red curved staircase that followed the form of the building. Keep reading to see pics of the Boot House and the next-door Cowboy Hat house.

The late Dan Phillips designed this boot house. He had a spot in a Ted Talk discussing his mission.

Dan headed the Phoenix Commotion, a construction company that builds affordable homes from reclaimed and recycled materials. They aim to divert landfill waste while creating sustainable housing for low-income single mothers, artists, and families. 

15. Houseboat

Living on the water in a houseboat provides a close-knit community and a sense of connection with fellow residents who share the unique waterfront living experience.

It offers the opportunity to create a home and embrace a serene and peaceful lifestyle, surrounded by the soothing presence of water and the beauty of nature.

Remember Sleepless in Seattle? That was a house boat.

That particular one is not considered affordable with its fame, but it shows that houseboat living is a thing.

Personal Thoughts: Living in south Louisiana, the first thought is, what if a hurricane comes and takes your house away? Perhaps I could drive the boat to a safer area to ride out the storm.

I would have to deal with my motion sickness, though. I wonder if the body gets used to the swaying.

I could be convinced to live on a houseboat if it were in Key West, FL. I could have my private sunset every night.

16. 3-D Printed Houses

3D-printed homes represent a groundbreaking advancement in the construction industry, offering a fast, cost-effective, and sustainable alternative to traditional building methods.

A 3D printer can construct a house much faster than traditional building methods. Some 3D-printed homes can be printed in as little as 24 hours.

The giant 3D printer feeds a concrete mixture in layers to build the walls and structure of the house based on a digital blueprint. 

3D printing is more sustainable than traditional construction methods. It produces less waste and uses less material.

Personal Thoughts: I saw a 3-D printed house in person at the Community First Village in Austin, TX, which was very cool. It was a prototype, so the interior was not built out. The fact the frame of the house can be built in literally hours is astonishing. I am anxious to see where this type of technology goes.

I have researched how these structures can be used as a solution for disaster relief housing or for those groups needing shelter, like homeless people. This is promising as there is a great need.

17. Loft Living 

A loft apartment involves converting a single, open space (like a warehouse or factory) into a residential living area.

Originating from replacing old factories and warehouses, lofts offer floor plans with high ceilings, large windows, and exposed architectural features like brick walls and wooden beams. 

This style of living is trendy among artists and young professionals, offering a versatile space that can be customized to serve as a home, a studio, or even a small business. I can see why!

Personal Thoughts: I am still determining why this appeals to me. It could be because it is marketed so well in the movies or because you can appreciate what goes into a home, like the pipes and HVAC ducts. The high ceiling makes a space so immense, even if it is only 10-12 feet wide. 

18. Full-time Hotel Living

Don’t believe me? Check out this article on Joy Bricker, who lived in the Towne Place Suites for over ten years. It was cheaper than an apartment in the Washington Metro area where she lived.

You could not get away with staying there for ten years now, but it is an idea!

Personal Thoughts: There are several hotels I would love to live in full-time! I would like to have someone clean my space and wash my sheets. It would have to be the right room and location. This is a way to travel worldwide – perhaps for a Travel Blog. That is something to consider. 

19. Full-time Cruise Ship Living

Here me out on this as this is a more expensive alternative housing idea.

This may be an option for some, but for those willing to hop on the trend, you can expect to pay about $29,999 per year for accommodations, basic medical care, gym usage, pools, housekeeping, meals, entertainment, and other activities. 

You won’t have utilities or transportation or cook your food. Suddenly, the almost $30,000 a year doesn’t sound so bad.

Listen to Mama Lee talk about her experience living at sea on a cruise ship. 

Personal Thoughts: If I didn’t get so motion sick from the most simple things, I would be down for this idea! At least for part of the year.

I may have to have a shipping container or tiny home set up on a piece of property or an RV to live in when not cruising. It’s tempting, for sure! Never having to cook and eat these lavish meals. I would be glad there was a gym on board.

20. Yurts

Yurts are round and portable structures that Mongolian nomads traditionally use. These homes are inexpensive and environmentally friendly due to their unique design. Yurts are made from natural materials such as canvas and wood, which make them sustainable. 

Personal Thoughts: I can’t tell you what about a Yurt attracts me. Perhaps the unconventional rounded walls, the tall ceilings, or open spaces. They are so very special.

21. Straw Bale Houses

These are built using straw bales as insulation or as structural building blocks. They are energy-efficient and sustainable.

22. Bamboo Houses

Bamboo is a sustainable and versatile building material. In many parts of the world, it’s used for constructing houses.

23. Hobbit Houses

Inspired by the “Lord of the Rings” series, these homes are built into hillsides or underground to blend in with the natural landscape.

24. Passive Houses

These are designed for energy efficiency and comfort. The design reduces the ecological footprint using specific construction techniques to minimize heating and cooling needs.

25. Cave Houses

These houses are carved into a mountain’s side or underground. They can be surprisingly comfortable and energy-efficient.

26. Floating Houses

Not to be confused with houseboats, these are stationary structures built on floats. They are common in places with lots of water, like the Netherlands or parts of Canada.

27. Tent House

These are more permanent structures that use the basic design of a tent but are built with more durable materials.

28. Ice Hotels or Igloos

While not practical for year-round living in most places, these structures made of ice and snow are used in some cold climates.

29. Capsule Apartments 

These are tiny, one-room apartments stacked together to create a larger building. They originated in Japan, where space is at a premium.

30. Earthbag Houses

These are built using bags filled with earth or another filler material. They’re stacked together to form walls and then often covered with plaster.

31. Underground Houses

These homes are built mainly or entirely below ground. They can be very energy-efficient and offer a unique living experience.

32. Cardboard Houses

Companies like Wikkelhouse are making houses out of cardboard. These homes are surprisingly durable and well-insulated.

33. Aircrete Domes

These are lightweight, insulated concrete domes. They’re durable, fireproof, and resistant to pests.

34. Pallet Houses

These are built using wooden shipping pallets. They’re an affordable and sustainable building option.

35. Tire Homes, aka Earthship Houses

These are built using old tires packed with earth. They’re sustainable and energy-efficient.

36. Van Conversions

Like Skoolies and bus conversions, these vans have been converted into homes to travel around the country.

37. The World of Cob Houses

Cob homes are made of natural materials like mud, clay, and straw. No corn cobs in sight! This type of dwelling also has excellent insulation properties, which can help to keep your home warm in winter and cool in summer.

38. Earth Berm Home

An earth berm home is built by digging a pit and insulating it with hay bales, straw, or other materials. These homes are energy-efficient because the soil can be a natural insulator.

39. Retirement Abroad

Some people choose to retire in a different country where the cost of living is cheaper or the climate is more to their liking.

40. Seasteading

This concept allows living on floating structures in international waters to create new societies or habitats.

41. Greenhouses

Some people have converted greenhouses into housing. These homes can provide a unique living experience and the opportunity to grow your food year-round.

42. Garage Conversions

Converting a garage into a living space can be a cost-effective way to add more room or create a separate dwelling.

43. Train Carriages

Old train carriages can be refurbished and converted into unique homes.

44. Lighthouse Living

There are instances where old lighthouses have been converted into homes.

45. Windmill Conversions

Old windmills have been converted into homes in some countries like the Netherlands.

46. Church Conversions

Old churches can be converted into unique and spacious homes, often with stunning architectural features.

47. Cordwood Homes

These are built using debarked tree logs set in a mixture of mortar and insulating materials.

48. Papercrete Homes

Papercrete is a material made by combining recycled paper with cement and clay.

49. Sod Houses or Soddies

These are made from sods cut from grassy soil and were historically used in the United States and Canadian prairies.

50. Pit Houses

These are dug into the ground and typically have a ground-level roof. They take advantage of the earth’s insulating properties.

51. Monolithic Dome Homes

These are a type of structure cast in a one-piece form. The dome design provides energy efficiency and resistance to natural disasters.

52. Rammed Earth Homes

These are built using a technique of compacting the earth into a frame to create walls.

53. Grain Bin Homes

Old grain bins or silos can be converted into homes, often with a very modern look and feel.

54. Quonset Hut Homes

These are lightweight, prefabricated structures of corrugated galvanized steel having a semicircular cross-section.

55. Tent Platforms or Yome

A blend of a yurt and a dome with the portability of a tent.

56. Glass Houses

Houses mainly made of glass can be beautiful and let in a lot of natural light, but they also come with privacy and energy efficiency considerations.

57. Converted Barns

Old barns can be converted into spacious and rustic homes. 

58. Water Towers

Old water towers have been converted into unique multi-story homes in some places. 

59. Fire Stations

Decommissioned fire stations can make for exciting and spacious homes.

60. Airplane Homes

There are a few instances of old airplanes being converted into homes. 

61. Bunker Homes

Old military bunkers have been converted into homes, often semi-underground. 

62. Tipis

Traditional Native American dwellings can be a portable and natural housing solution.

63. Mud Brick or Adobe Houses

These are made from a mixture of earth, water, and often straw and dried in the sun.

64. Insulated Concrete Form (ICF) Homes

These are made from concrete poured into foam forms that stay in place to provide insulation.

65. House-sitting

This involves looking after someone else’s home (and sometimes pets) while they’re away. In return, you get to live there rent-free.

This can be a great way to experience living in a different country without the cost of rent or a mortgage.

66. Home Exchanges

This involves swapping homes with someone in another country for a set period. It’s a cost-effective way to travel and live in a different country.

67. Co-housing Communities

These are intentional communities of private homes clustered around shared space.

Each attached or single-family home has standard amenities, including a private kitchen. At the same time, shared spaces typically feature a common house, including a large kitchen and dining area, laundry, and recreational spaces.

68. Living on a Sailboat

Some people choose to live on a sailboat and travel the world’s oceans. This can be a cost-effective way to see different countries, but it requires a specific set of skills and a love of the sea.

69. Volunteer Abroad Programs

Some organizations offer free room and board in exchange for volunteer work. This can be a rewarding way to experience life in a different country.

70. Teaching English Abroad

Many countries have a high demand for English teachers. In some cases, housing may be provided as part of the job.

71. Fixer-Upper

Buy a fixer-upper house and complete the renovation yourself. A fixer-upper project could help you score some equity in the home.

72. Live in a Treehouse: You can live in a tree house

Living in a treehouse can be a great alternative housing option for anyone who loves nature and wants to be environmentally friendly.

Treehouses can be built on a budget using ecologically sustainable materials and offer an escape from modern life.

The late Dan Phillips showcases his Treehouse design in this YouTube video. 

What Building Materials can I use for a more energy-efficient or eco-friendly home?

Exploring Insulation Options

Insulation is a crucial component of any energy-efficient home. There are many insulation options available that are affordable, eco-friendly, and energy-efficient.

Options like cellulose made of materials like waste, fiberglass, mineral wool, and natural wool insulation have proven effective against heat loss, noise, and moisture in constructing an eco-friendly building.

Consider Reusing Materials

Reusing old doors, windows, bricks, and timber is an ideal way to reduce material waste while lowering building costs.

Reused materials can be found in many locations, such as salvage yards, and carry a unique feel for your home.

Consider bending a fork to be used as a cabinet handle if you are looking for a unique way of using materials that you may have lying around the house.

Check out some pictures of the Cowboy and Boot house by Dan Phillips, which was primarily built with recycled materials. We visited and received a personal tour.

Consider Hemp Concrete

Hemp concrete, or hempcrete, is an environmentally friendly and sustainable building material gaining attention in alternative housing construction.

Hemp concrete is lightweight, non-toxic, and low carbon footprint, making it an attractive choice for those seeking environmentally conscious and energy-efficient building solutions. 

Corrugated Metal Sheets

Corrugated sheet metal offers an affordable and durable building option, ideal for those seeking a cost-effective solution without compromising structural integrity.

Plus, the rust look is gaining popularity.

Building Homes Using Pallets

I am still deciding about this one, as I am sure most people would agree. It did come up in the research, so I must share it with you.

Perhaps a camp could be made out of pallets, but I can not see myself living in this full-time. Although, some of the houses on tropical islands are not too different!

Building a home using pallets is a creative way to construct an alternative space. Pallets are readily available and can be an excellent alternative building material.

Pallet homes are cheaper housing alternatives, and they can be erected in a short amount of time.

Discount building supplies

Where we live, there are Habitat for Humanity Restores. The Restore takes donated housing and building items and resells them to the public at a discount.

I occasionally go in to see if I can find some gems for my house. I have built up a well-stocked tool set from the ReStore for my DIY projects.

Green Walls

Incorporating a green wall into a home can enhance its sustainability and energy efficiency.

The green wall, composed of living plants, provides natural insulation and improves air quality, reducing the need for mechanical heating, cooling, and ventilation.

It also adds a unique aesthetic appeal, creating a living piece of art that benefits the home’s inhabitants.

Where can I see some options in person?

Events like the Tiny House Festivals are a great way to see some options in person.

There are more than just Tiny homes there, like Skoolies, Yurts, and other innovative housing ideas.

The people you will meet at these festivals are so friendly that they help you understand their way of living. 

One of the most memorable things I remember someone saying was, “I never have a bad weather day. I watch the weather for the next few days and plan where I will go around what the weather is like. I love when I can just be somewhere sunny and 75 degrees.” 

Erin’s adventures at the tiny house festival

There is also a Tiny House community in Austin, Texas. The Community First! Village offer tours of their property.

This community is to house those chronically homeless.

There are some homes to check out in a virtual tour or in a gallery of different ones that have been built, or contact a Tiny House Builder to see if you can schedule a time. 

You can also browse Airbnb to see homes worldwide in some fun categories. Just watch out because you could go down the rabbit hole like I often do.