Alternative Housing Trends to Watch
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With ever-increasing house prices, it’s no wonder that first-time buyers are looking at alternative housing options to find their future homes. In recent years, homebuyers have had to look beyond the traditional housing market because they felt that they could not afford to save for a down payment or obtain a mortgage for traditional homes or condos in their location. Let’s look at 6 alternative housing trends that are set to become even more popular.
Key Takeaways
- As housing prices rise, first-time buyers are exploring alternative housing solutions to enter the market.
- Although cheaper, alternative housing options aren’t necessarily an ideal solution as you’ll have to compromise on space, location or quality of build, and sometimes won’t be able to get a mortgage.
- Take time to research all your options and discuss your budget and needs with an estate agent and a mortgage broke,r as they will likely be able to find the perfect property for you and within your budget.
What Are Alternative Homes?
Alternative homes are all types of housing solutions that are designed or built outside of traditional construction norms, such as detached houses, semi-detached homes, apartment complexes, or condos. Alternative homes can be constructed from traditional or new materials and are often more affordable and sometimes faster to build or design.
In most cases, the primary motivation for alternative homes is price; they are also a great way to reduce your carbon footprint, use fewer or recycled materials, minimize land space, be energy independent or even integrate with nature.
6 Popular Alternative Home Trends
With so many alternative home solutions to pick from, we’ll look at 6 popular trends we predict will grow.
1. Tiny Homes
Tiny homes are becoming increasingly popular in Canada due to their affordability. Tiny homes, by definition, are housing solutions that are usually between 60 and 600 square feet in size. They can be on a trailer or on the ground. They can also be made from a 20-foot shipping container.
Millennials entering the housing market are the primary demographic interested in tiny housing options, with a growing number of Gen X searching for a simpler way of living.
Typical costs: range from $75,000 to $200,000, depending on the size and type of tiny house.
What you’re saving: Construction costs and furnishings, as less space means less stuff, and the plot of land can be smaller than the one necessary for a small home.
2. Van Life
The rise of #vanlife stories on social media has significantly transformed this previously marginal housing option into a modern lifestyle choice for many Canadians each year. Transforming a school bus, camper van, or truck into a temporary or permanent living space has never been easier. Whether you do it yourself or buy a second-hand motorized RV, the van living experience is definitely a cheaper housing solution. It tends to attract a younger demographic (with or without children) and individuals seeking freedom to roam and a slower pace of life.
Typical costs: Campers range from $20,000-$65,00,0, and larger RVs $70,000 to $200,000
What you’re saving: a plot of land. Your home is now your vehicle.
3. Micro Apartments
Micro apartments are new building developments featuring very small apartment units, typically ranging from 100 to 500 square feet. The units are either part of a new building or a renovation project of an existing shopping mall, former school, or office building. These are great options for those seeking a place to live with excellent amenities, a minimalist lifestyle, and a wide range of shops, as well as restaurants and entertainment centers on their doorstep. These types of micro-living solutions are popular among young working professionals who live independently. It attracts those who can afford the sometimes hefty price tag but are looking for ready-made communities on their doorstep.
Typical costs: The price will depend on the size of the apartment and its location.
What you’re saving: You’re definitely saving on furniture as these units are often built with space-saving microelements. You probably won’t need a car, as you’ll be close to everything. Additionally, taxis won’t be necessary, as everything will be within walking distance.
4. 3D Printed Homes
Although 3D-printed houses are not yet mainstream, there are more and more hopeful homeowners tempted by this very affordable type of housing. With more Canadian companies offering such homes, we can expect to see an increase in 3D-printed homes in 2024. 3D-printed homes appeal to those seeking a minimalist home at a fraction of the cost of a small house or even a tiny house.
Typical costs: Although this is still relatively new in Canada, similar projects in Austin, US, are made possible for as low as $5,500 CAD.
What you’re saving: The primary benefit is time, as these are built in 24 or 48 hours; the other savings include construction materials and workforce costs.
5. Off-grid Eco Homes
Eco-friendly homes are constructed using sustainable materials, such as wood, straw bales, and recycled bricks made from plastic or mud, and are designed to minimize their environmental impact. These buildings are low energy or even self-sufficient (off-grid).
Off-grid homes produce their own energy with solar panels, reuse rainwater for greywater and blackwater, and require very little heating energy by installing excellent insulation materials and utilizing natural sources of heat.
These types of homes appeal to families seeking ways to reduce their environmental impact and become less reliant on big energy companies. They are usually found in remote locations.
Typical costs: The average cost to build a sustainable house is between $395,00 and $450,000.
What you’re saving: The primary savings are realized in the long run through reduced energy costs.
6. Houseboats
Living on a houseboat can be a unique and alternative housing solution. You’ll be able to enjoy the water and the outdoors while still having the comforts of a home. Nowadays, houseboats can be customized to fit your needs and preferences, and many offer stunning views of the surrounding area. However, it’s essential to consider the practicalities of living on a houseboat, including the need for regular maintenance and the potential for weather-related challenges.
These tend to attract families who cannot afford the rising cost of living in the city center but still want to be in a central location.
Typical costs: The cost of a houseboat is typically between $150,000 to $400,000, or more.
What you’re saving: You save on the plot of land, although there’s still a cost involved with mooring the boat in a port, river or canal in your city.
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Frequently Asked Questions
Here are some answers to frequently asked questions about the future of housing.
What does the future of housing look like?
It’s challenging to predict exactly what the future of housing will look like, but certain trends are likely to persist. These include the use of sustainable materials and energy-efficient designs, the incorporation of smart home technology, and the growth of co-living and micro-housing options. However, it’s essential to consider that the future of housing will also be influenced by factors such as economic conditions, government policies, and societal shifts.
Should I buy a new house now or wait for a recession?
Deciding whether to buy a new house now or wait for a recession depends on your personal financial situation and goals. Whether you have the financial means and stability to afford a new house now or are concerned about a potential recession and want to wait until the housing market stabilizes, speak to a mortgage expert today. It’s important to consider factors such as job security, savings, and long-term financial goals before making a decision.
Should You Choose an Alternative Home Option in Today’s Housing Market?
Alternative home options can be a great choice in today’s housing market if you value affordability, flexibility, and uniqueness. However, considering the extensive research required and complex factors such as zoning regulations and limited financing options, sometimes reverting to the traditional housing market is a more suitable option.
Often, your best chance of finding the right property comes from working with a reputable and knowledgeable real estate agent and mortgage broker in your area who can support you throughout this journey.
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