Please enable JavaScript to view the comments powered by Disqus.

Personal Finance Advice from

5 Trendy Housing Options That Are Cheaper Than Renting

By pursuing one of these nontraditional housing options, you can cut your expenses and break the paycheck-to-paycheck cycle.

Thinkstock

Keeping your housing costs low is key to achieving financial freedom. Minimizing your expenses frees up more money for investments, savings, and pursuing your passions. While renting an apartment or a house is still the mainstream approach, there are other alternatives available that are more cost effective. Here are a few:

See Also on Kiplinger: 10 Tiny Houses You'll Love Big Time

1. Co-Living Spaces

Co-living spaces, which often resemble college dorms, are increasingly popular in places with a high cost of living, such as San Francisco. The tech capital is booming, and as a result, it is unaffordable for many; a one-bedroom can cost nearly $3,500 a month.

More and more people are turning to co-living spaces as a cost-effective way to get living situations they can afford. In Silicon Valley, co-living spaces can be had for $1,000, less than half what a regular apartment would cost. In these dorm-style spaces, renters usually have a small bedroom of their own, but share the kitchen and common areas with up to a dozen other residents. Besides cost savings, these arrangements also provide people new to the area with great social opportunities and allows them to meet others in their industries.

Advertisement

2. Housing Co-Ops

While housing co-ops are fairly common overseas, they are just starting to gain traction in the United States. In a co-op, residents pool resources to own and manage housing together. The property can be a cluster of homes or an apartment-style building. Dwellers use their joint contributions to purchase the facilities and pay for community amenities like utilities, Wi-Fi, and lawn maintenance. The community approach cuts costs dramatically, allowing you to save a significant amount of money compared to traditional housing.

The National Association of Housing Cooperatives has comprehensive information on how to locate a co-op, how to start one yourself and questions to ask before handing over your hard-earned money.

3. Work-Trade

Many people find success with work-trade agreements. Most common in rural areas, people can get free or cheap housing in return for a set number of labor hours, such as weeding, yard maintenance, or gardening. However, this approach is also getting more common in suburban and city areas, as even regular apartment complexes are willing to offer rent subsidies for men and women with repair or maintenance skills. You can find work-trade arrangements by searching for "work-trade housing" or "rent-free exchange" on community job boards.

4. Tiny Homes

Tiny homes are increasingly popular for those looking for a cheap alternative to homeownership; these micro living spaces can also be a great avenue for renters. Many tiny home communities offer select units for rent. This approach can be a great option to cut down your costs while you save up a down payment for a home of your own, or to test out if small living is for you. Housing can cost as little as $300 a month.

Advertisement

See Also on Kiplinger: Great Tiny Homes for Retirees

5. House-Sitting

Another option is to act as a serial housesitter. When people are selling their homes, the structures often go vacant for months, leaving them vulnerable to thieves and squatters. Many sellers hire housesitters to live in the home rent-free to keep the home occupied and safe while it's on the market. This idea is a great strategy to get free housing without requiring a lot of work or time. You can often find housesitting opportunities on Craigslist, Trusted Housesitters, community classifieds, or by connecting with local real estate agents.

With the national rent average increasing for yet another year, many people are feeling pressure regarding their budgets. Housing eats up a huge part of their income, making it difficult to meet their other obligations or pursue their goals. Alternative housing solutions offer cost-effective ways to keep a roof over your head while minimizing your expenses.

This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website.

More From Wise Bread

This article is from Wise Bread, not the Kiplinger editorial staff.