When I worked as a Realtor, I learned a lot about the housing market. Affordable options can be tough to find. Many people are paying 30, 40, sometimes even more than 50% of their salary, just to keep a roof over their heads. If you’re in that situation, it may be time for drastic measures.

I don’t advocate getting huge mortgages. Foreclosures are becoming the norm, rather than isolated cases. When we buy or rent homes that we can’t afford, we are bound to lose them! There are a lot of emotions tied up with real estate. Many, many times people cling to their “dream home” and leave only when the Sherriff comes! If you’re willing to keep an open mind, read on:

1.   Downsize

Why is square footage up while the average family size has shrunk? Because we all need “space.” How much is enough? If you’re a family of 4 living in 4,000 Sq. Feet, I are dare say you can downsize comfortably. Which size is right? Only you know. Individual families have their own needs, but as a whole, this societal trend towards McMansions has gotten out of control. Families can live in cottages, apartments, Tiny Houses, etc.

2.   Focus on necessity over luxury

Swimming pools, 3-car garages, granite counters, whirlpool tubs and  5 bedrooms are all luxury items. We need bedrooms, a bathroom, a kitchen, and a living area. Is it nice to have extra? Of course! But at what cost? Everything beyond the basic should be carefully examined. Don’t be like Meri crying over a Wet Bar! (Don’t you just love Sister Wives?)

3.   Move

Of all the options, this is the most drastic, but often has  the largest financial impact. Real estate is most expensive on the East and West Coasts, while the South and Midwest are significantly cheaper. If your job allows a transfer, or you work at home, a move might be possible.

4.   Investment Opportunity Housing

A house is usually a money-sucker, not a money-maker. If you buy a property that also earns income, it will cut expenses. Look at Multi-Family buildings. You can live in a Duplex and rent the other side. Small mobile home parks can be a good investment, as can super-small apartment complexes.

If none of the above is an option, and you truly can’t afford a place to live, try:

5.  Shared housing

If you’re single, consider a roommate. Move in with parents or siblings. If you own a home, think about getting a renter. This should be entered into cautiously, weighing all the positives and negatives. It may be unpleasant, but it will allow you to save up enough for your own modest place.

Is your housing unaffordable?