The 8 Best Ways To Save Money on Housing (For Renters and Homeowners)

1. Reduce your utility bills

Saving energy is not only good for the environment, it’s good for your wallet! As you do home improvements, install energy efficient appliances, new LED lightbulbs, and low-flow plumbing fixtures.

By switching to a programmable thermostat, you can keep your home a comfortable temperature when you’re there, and then save money on your bills while you’re away.

Make sure to insulate areas of your home like the attic, where you could be losing heat in the winter. And by adding cheap weather stripping to your doors and windows you can save a lot on your heating and air conditioning usage.

Additionally, you could put up thick curtains or even thermo-reflective shades on your windows. Keep your shades closed during the day in the summer, and open during the day in the winter, to take advantage of the free heat from the sun.

2. Refinance your mortgage

By keeping your credit score up, you can get better terms on a loan. Additionally, interest rates may be lower right now than they were when you purchased your home. If you plan to stay in your house for a while, you could refinance your mortgage and get a lower interest rate. 

Be aware that there are upfront costs to refinancing, so while a lower interest rate of 0.5% can translate to hundreds of dollars saved each month, you will only see the overall benefits of the refinancing if you stay in your house for a couple of years.

3. Rent out a room or get a roommate

Renting a room on AirBnB for several nights a month might actually pay your rent or mortgage for you! If you have an extra room that you don’t use, or an accessory apartment (sometimes called a mother-in-law suite), consider renting it out to offset your housing costs. 

You could even consider getting a longer-term roommate. Whether that is asking your partner to move in and split the housing costs, moving in with a friend, or finding someone online who needs a place to stay, this can save you money.

4. Negotiate when you re-sign a lease

If you’re a renter, it is a good time to negotiate when your lease is up for renewal. Having a good relationship with your landlord will make this easier. Landlords want to keep good tenants, so if you always pay your rent on time and don’t cause problems, this gives you some leverage during negotiations.

Before you negotiate, research the rents of similar units in your area to see if you’re overpaying. Show these other prices to your landlord and ask if he or she is willing to lower your rent. If you’re overpaying and your landlord won’t reduce your rent, consider moving to a cheaper apartment. 

5. Move

Moving to a lower cost of living area is a frequently touted piece of advice to decrease expenses and increase quality of life. This isn’t realistic for everyone, since sometimes you need to live in or near a high cost of living area for your job. However, with the world changing to embrace more remote work, moving could be an option for you. 

You can even move within your local area. Finding an apartment that is cheaper, going one town over where the property taxes are thousands of dollars less per year, or downsizing to a slightly smaller place can save you thousands every year. 

If you decide to go this route, and you’re selling a home, selling it yourself instead of through a realtor can save you tens of thousands of dollars!

6. House Hacking

House hacking is when you buy a house with multiple units, live in one, and rent the others out to make income that will pay your mortgage. This is often done with duplexes, triplexes, or houses with accessory apartments. This is a great way to get your housing for a big discount or maybe even free! 

This is also a type of real estate investing, and many people choose to keep their multi-unit houses once they move and rent out both units to generate additional income.

7. House Sitting

House sitting is where you stay in someone else’s home while they’re away to care for their pets, their garden, or their house in general. Sometimes you get paid for this work, and in other cases you house sit for free but this saves you money on housing. 

People who travel a lot often house sit to save money on hotels and AirBnBs, but you could do this to save money on your regular housing. I read an article about a woman who lives in New York City rent-free by dog sitting on the Rover app. Not only does she get paid to care for pets, but she also gets to stay in the owner’s homes for free. 

8. Alternative Housing

Finally, consider alternative housing that could cost much less than a traditional house or apartment. People live in all kinds of alternative housing, such as tiny houses, on sailboats, in RVs or campervans, and more. Oftentimes, people like these types of housing for not only the lower price but also the freedom, flexibility, and opportunity for travel that they provide.