6 Housing Options People are Turning to as Prices Continue to Climb

There’s no denying the housing market has been anything but smooth sailing for both renters and buyers. For one, interest rate hikes have made mortgages less affordable for most of the population, which has left buyers looking to invest in property having to find alternative housing options that fit their budgets.

Another complication driving buyers towards other options is that there are not enough houses to meet demand, so many buyers lose multiple bids and then get tired of the chase. Losing 10 bids in a row will make the house hunting journey lose all its excitement very quickly.

It’s no wonder other options such as a container home start to become more appealing. Which housing option would be right for you, then? Let’s dive in.

First, Why is the Housing Market Under Strain?

For years, the US enjoyed low interest rates that allowed buyers to secure affordable mortgages but with inflation rates rising and the cost of living at record highs, the interest rate honeymoon has officially ended. Higher mortgages for landlords have also pushed up the prices of rentals, making them much less affordable.

As we mentioned above, most houses end up fetching higher than their asking price after bidding wars, where many would-be buyers miss out on their dream home more than once. You can imagine how absolutely disheartening this is, because after all, there is a lot of emotion tied to buying a home.

Naturally, buyers who keep ending up disappointed and back to square one after every offer they put in will eventually feel like giving up. Many have turned to alternative housing solutions that offer a more minimalistic, affordable and nomadic lifestyle.

Storage Units

One surprising alternative housing option that is starting to gain momentum is designing a micro home within a shipping container. They can be decked out with windows and doors and fitted with a kitchen and bathroom. Containers are generally 20ft long, so they’re unassumingly big and can fit a fair amount of furniture in the interior. While compact, shipping containers offer portability, so they can be assembled in beautiful locations such as the woodlands or on a lake.

Tiny Homes

What started with a few documentaries about people living in tiny homes has turned into something of a social movement with people across the world downscaling their living situations for smaller homes.

The tiny house movement advocates for a simplified life with less “stuff”, giving you more financial freedom to travel and invest in experiences. These homes are fashioned from sheds, playhouses, containers and even tree houses, with some even being small enough to be popped onto a trailer for nomadic homeowners. If you’re looking for a ready-made tiny home, DeepBlue SmartHouse offers a variety of tiny homes you can pick.

Houseboats

If you’ve ever been to London and taken a stroll along the River Thames, you will notice a number of houseboats anchored to the dock. While it may be a foreign concept to some and turn the stomachs of those who suffer from motion sickness, the concept of a houseboat is nothing new in most countries around the world.

House boats offer a compact living space for those who are adventure seekers and water lovers. They are also motorized to take you on relaxing cruises within the body of water your boat is located in. Drinks at sunset on your private houseboat deck sounds like the perfect way to destress after a long day.

RVs

Many families and couples have sold their traditional homes in favor of adopting a more nomadic lifestyle by renovating RVs to hit the road in style. You can really go all out with sprucing up your RV, going so far as to install laminate floors, quartz kitchen counters, chandeliers and soak-in tubs.

Being on the road doesn’t mean you have to give up the luxuries and comforts you are accustomed to. While undoubtedly more compact, RVs can offer a comfortable way of life for those seeking adventure.

Shared Housing

Many homeowners purchased homes while the interest rates were still low and then struggled to cover their mortgage repayments when they were hit with big price hikes. Of course, the banks and repo man don’t care that you suddenly can’t afford your repayments, so you need to make a plan.

What many people who found themselves in this situation have done is share their home with a friend, family member or advertise for a roommate. This way, you are getting help with your mortgage repayment through your roommate’s rent and can manage your repayments more comfortably.

Airbnb Empty Rooms or Self-contained Cottages

If you have an empty ensuite room in your home or a self-contained cottage on the property, you can rent it out through Airbnb and bring in a decent income that can help you pay off your mortgage faster.

Final Thoughts

Despite a tumultuous housing market making the barriers to entry for homeowners much more difficult, it doesn’t mean all hope is lost. The trend of adopting an alternative lifestyle with a mobile home, finding a roommate or renting out a portion of your home all offer ways to own a home for less in these tough times.