10 Expert-Approved Ways to Save Money on Housing Without Sacrifice!

Housing is one of the biggest expenses in most people’s budgets, but what if you could save money on your living situation without giving up comfort? With a little creativity and a few smart strategies, you can make your housing costs more manageable. Here’s how to start saving today.

1. Take a Hard Look at Your Current Housing Situation

Are you living in a space that’s bigger than you really need? Downsizing could be a game-changer. Smaller spaces often mean lower rent or mortgage payments, reduced utility bills, and less upkeep. If moving isn’t an option, consider rethinking how you use your current space. Could you rearrange or declutter to make it feel more spacious?

We currently live in a much larger house than we truly need—a four-bedroom home for just three people. There’s also a dining room that rarely gets used, making it clear that some spaces in our house could be better utilized. While we aren’t planning to downsize anytime soon, we’ve started exploring ways to reconfigure these underused areas. For example, our dining room may soon be transformed with a smaller, secondhand dining table, allowing us to create an additional sitting area.

Owning a four-bedroom house isn’t the most frugal choice we could make, but it’s a deliberate decision that aligns with our priorities. We love our neighborhood and value being close to family, which makes this home the right fit for us at this time. Sometimes, the best choice isn’t the cheapest one. If we ever found ourselves struggling financially, downsizing would certainly be an option—though it would mean leaving this neighborhood we cherish.

2. Don’t Be Afraid to Negotiate

You’d be surprised how often landlords or lenders are open to negotiation. If you’re renting, check what similar properties in your area are going for and use that information to ask for a rent reduction when your lease is up for renewal.
If you’re a homeowner, refinancing your mortgage could lower your monthly payment, especially if interest rates have dropped since you bought your home.

I tried negotiating with the bank that financed our home, but unfortunately, I didn’t have any success. However, we managed to save money by purchasing our home off the market, which allowed us to avoid paying realtor fees. Another way we saved was by shopping around for the best interest rate, which we found at a local educator’s credit union.

Did you know that some teachers’ credit unions extend membership and benefits to family members? I had no idea until I researched it, but it turns out mine does! If you’re in the market for a home, exploring credit unions like these could be a fantastic option to save on financing costs.

3. Try House Hacking

House hacking is a fancy term for renting out part of your home to cover some (or all) of your housing costs. If you have an extra bedroom, a basement, or even a driveway, you can turn it into income. Hosting short-term renters on platforms like Airbnb is another great option.

Pro Tip: Be sure to check local regulations before listing your space for rent.

Before becoming parents, my husband and I rented out a room in our house for several years. One of his friends needed a place to stay, and it turned out to be an ideal arrangement. He got affordable rent, and we benefited from a little extra income each month. As a bonus, he was fantastic with our pets, making the situation even better. It was truly a win-win scenario.

I’ve also always dreamed of buying a duplex and renting out one side to help cover housing costs. Unfortunately, there weren’t any duplexes available in our town, but the concept of house hacking has always appealed to me. It’s such a smart way to make homeownership more affordable while building equity over time.

4. Slash Your Utility Bills

Saving money on housing isn’t just about rent or mortgage payments; it’s also about lowering the cost of living in your home. Start by being mindful of energy use:

• Switch to energy-efficient appliances and light bulbs.
• Seal drafts around windows and doors to keep heating and cooling costs down.
• Use a programmable thermostat to avoid wasting energy.

Small changes can lead to big savings over time.

One of the first things we did after moving into our old house was invest in spray foam insulation for the attic. The difference was remarkable—our energy expenses dropped significantly. We also added an attic tent to the attic door, a small but effective upgrade that kept the summer heat from seeping into our hallway. These improvements didn’t cost much but made a noticeable impact.

Even smaller changes can add up over time. For example, we made a habit of unplugging appliances when not in use, turning off lights in empty rooms, and setting the thermostat a few degrees higher in the summer. These little adjustments required minimal effort but helped us save money and reduce our energy consumption.

5. Learn to DIY Home Maintenance

Paying for home repairs and maintenance can add up fast. Instead, learn to tackle small fixes yourself. From unclogging a drain to painting a room, there are plenty of tasks you can do with a little research and elbow grease.
For bigger projects, always get multiple quotes to find the best price, and don’t forget to check reviews!

I’ll be honest: I’ve tackled a fair share of DIY projects, and I proudly hold the title of queen of unfinished projects. In our old house, I saved money by painting old paneling and ripping out ruined carpet, but I had a bad habit of leaving things about 90% done. When we moved into our new house, I made a promise to my husband—no more remodeling projects. However, repairs are entirely different.

When it comes to fixing things around the house, YouTube is my go-to resource. I love how you can replay tutorials as many times as needed to truly understand the steps. Whether it’s patching drywall or fixing a leaky faucet, there’s something so satisfying about learning a new skill and completing a repair properly. Plus, tackling these small fixes saves a ton of money compared to hiring a professional.

6. Share the Load

Adding a roommate or housemate is one of the fastest ways to cut housing costs. Not only can you split rent, but you can also share utilities, groceries, and even internet bills.
If the idea of living with someone isn’t appealing, remember that the right roommate can actually improve your living situation. It’s all about setting clear expectations upfront.

I’ve had my fair share of experiences living with roommates over the years. Some were absolutely wonderful, while others presented their fair share of challenges. As I mentioned earlier, we even had a close friend live with us for a while, which worked out great at the time. However, now that we have a child, I would only consider inviting family to live with us.

For young adults, renting out a room or sharing a rental can be an excellent way to save money and make housing more affordable. It’s a practical solution that not only helps reduce living expenses but can also foster some memorable friendships along the way. Just be sure to choose your roommates wisely to ensure a positive experience.

7. Take Advantage of Community Programs

Many cities and states offer programs to help people save on housing. These might include subsidized housing, first-time homebuyer assistance, or property tax breaks for eligible households.
Look into what’s available in your area. Sometimes a quick phone call or online search can uncover opportunities you didn’t even know existed.

A coworker recently mentioned something I hadn’t considered: while my town doesn’t offer any first-time homebuyer assistance programs, there are several towns nearby that do. This was a great reminder to keep an open mind and stay flexible during your housing search. Expanding your search to include neighboring areas might unlock opportunities and benefits you wouldn’t have otherwise found. Don’t get too attached to one specific location—a little flexibility can go a long way in finding the perfect home and saving money in the process.

8. Consider Relocating to a More Affordable Area

If you’re open to a big change, moving to a more affordable neighborhood or city can dramatically lower your housing costs. Even within the same metro area, prices can vary widely depending on the location.
If you work remotely, this option becomes even more appealing since you’re not tied to a specific area.

Personally, I haven’t moved around much and currently live in a low cost of living area. I understand, though, that living in a particular location can be incredibly important to some people, whether for family, work, or personal reasons. In the distant future, we’ve considered relocating to a more rural area with even more affordable real estate, but that’s a decision we’d likely reserve for retirement. It’s all about finding what works best for your lifestyle and financial goals.

9. Be Strategic About Renting or Buying

If you’re a renter, timing is everything. Rent tends to be cheaper in the winter when there’s less competition. For homeowners, opting for a fixed-rate mortgage ensures your payments stay predictable over the years.
And don’t forget: You don’t have to stretch your budget to buy the fanciest home or rent the trendiest apartment. Stick to what’s practical and within your means.

If you’re trying to decide whether to rent or buy, it’s essential to consider how long you plan to stay in the area and what fits your budget. If you’re on the fence, tools like NerdWallet’s handy rent vs. buy calculator can help guide your decision. It breaks down the costs and benefits of each option, giving you a clearer picture of what might work best for your situation.

10. Think Long-Term

Some strategies take time to pay off but are worth the investment. For example:

• Paying extra toward your mortgage principal can save thousands in interest over the life of the loan.
• Making small upgrades to your home’s efficiency now can lead to lower bills later.

Remember, housing is an ongoing expense, so even small improvements can make a big difference over time. Since we plan on living in our current home until retirement, we’re comfortable investing a little more into it to enhance its value and efficiency. Taking a long-term view allows us to make thoughtful upgrades that not only improve our quality of life but also save us money in the long run.

FAQs About Saving Money on Housing

What is the best way to save money on rent?
Negotiating with your landlord and considering a roommate are two of the fastest ways to reduce rent costs.

How can homeowners lower their housing costs?
Homeowners can refinance their mortgage, learn to DIY repairs, or rent out part of their property to bring in extra income.

Is it cheaper to rent or buy a house?
It depends on your location and financial situation. Renting is often cheaper in high-cost cities, while buying can be more cost-effective in less expensive areas, especially long-term.

Final Thoughts

Remember, it’s all about balance. You don’t have to give up everything you love to save money. By focusing on smart, sustainable adjustments, you can reduce your housing costs while still enjoying the comforts of home. Every step, no matter how small, contributes to building a more secure financial future.

 What’s your favorite housing cost-saving tip? Share it in the comments below—we’d love to hear your ideas!