5 Ways to Lower Your Housing Costs

by Alexa Mason · 8 comments

During a recent money discussion, a couple of my online friends pointed out that their rent is half of my monthly income.

Since I live in rural Ohio (and wouldn’t have it any other way), I always get sticker shock when I hear how much money other people have to pay for housing.

In my hometown, rent averages $550 a month and mortgage payments aren’t much higher. One thousand dollars a month for rent would get you a mini mansion.

Sadly, having to pay a thousand dollars or more in rent puts many people in a real money crunch, which then prevents them from taking charge of their personal finances.

If you’re in a situation where your housing costs are more than you can handle, here are five ways to bring them back down:

How to Lower Your Housing Costs

1. Get a roommate

One of the easiest ways to save money on housing — without making any major sacrifices — is to get a roommate.

Yes, it’s not always the most convenient option, but if you love where you live then it’s definitely viable. This is especially true if you’ve bought a home and don’t have the luxury of moving to a less expensive place like renters can.

Make sure to properly screen potential roommates; the best place to look is with friends and family. After all, you’ll be sharing living quarters with this person!

2. Downgrade on space

This is what I was forced to do after getting divorced, and it worked out perfectly.

Move to a place in your area that’s smaller than what you currently have — or better yet, move to a smaller place in a lower-cost area. If possible, have your children share bedrooms.

3. Move to the suburbs/country

Living in the suburbs is much cheaper than living in a big city. If you’re currently renting, you can save a substantial amount of money by moving farther away. And remember that this doesn’t have to be a permanent solution; it can just be until you’re financially stable.

4. Refinance your mortgage

Interest rates are still low. If you haven’t refinanced your mortgage in the past five years, you should definitely look into it.

By knocking a couple points off your interest rate, you could save thousands of dollars over the life of your mortgage, as well as walk away with a lower monthly payment.

Just make sure the refinancing fees don’t eat up your savings.

5. Reassess your taxes & insurance

If you own your home and think your property taxes are too high, you can challenge the assessor’s valuation of your property. You’ll need to contact your county auditor’s office to get the process started. While you’re at it, don’t forget to ask about other discounts you may qualify for.

Now: homeowners insurance. As an ex-insurance agent, I can confidently say that if you haven’t filed a claim or switched insurance companies in the past three years, you’re probably paying too much.

I’ve worked with several insurance companies and most are the same: They raise your rates every year. So a good rule of thumb is to check on prices every three years.

If you can find ways to save on both your property taxes and homeowner’s insurance, you can lower your housing costs quite a bit.

Have you reassessed your taxes or insurance lately? Do you think $1,000/month rent is a lot?

Editor's Note: Did you know about the service called $5 meal plans? For $5 a month, they send you recipes of delicious, healthy, yet cheap food that costs just $5 a meal.

Several of my friends signed up and they are able to eat at home more because the instructions are easy to follow, making everything convenient. The deal also comes with grocery shopping lists, which saves them so much time. Check it out yourself by clicking here and you too may be able to save more and become healthier at the same time.

Money Saving Tip: An incredibly effective way to save more is to reduce your monthly Internet and TV costs. Click here for the current Verizon FiOS promotion codes and promos to see if you can save more money every month from now on.

{ read the comments below or add one }

  • Alex @ Credit Card Xpo says:

    I live in NY. $1000 gets you a small one bedroom apt or studio in Queens or Brooklyn with no utilities included, heating is about $200-$300/month in winter times. If you want to rent in Manhattan, forget about it! I own a single family house and my property tax alone is about $1000/month!

    • David @ MoneyNing.com says:

      $1,000 actually isn’t so bad for NY. I thought they were more like $2,500 or more but maybe I’m thinking about Manhattan and slight larger spaces.

      Good for you to be able to afford a home in one of the most expensive parts of the country!

  • Retired by 40 says:

    Moving to the country is definitely a great way to reduce housing costs. When I lived in rural Illinois, I paid $216 in rent for a 3-bedroom house (with 2 other girls. Together, we split the $650 rent). But now, I live in St. Louis, where my mortgage, taxes, insurance, and PMI together are $675 a month! $1,000 seems absurb to me! But, the downside of living in the country was that there weren’t a whole lot of jobs 🙁

    • David @ MoneyNing.com says:

      Wow, I was telling Michelle up top how $970 for owning a home is incredibly low, and yours is just $675!

      That is lower than the room I paid for TEN years ago!

  • Michelle says:

    $1,000 for rent seems like a lot, but that may be because I currently pay around $970 for my mortgage, taxes, and insurance.

    • David @ MoneyNing.com says:

      $970 a month to eventually own a home is awesome. I live in Southern California and I don’t think you can even get a room for that price.

  • Anne @ Money Propeller says:

    $1000 in rent seems perfectly normal to me and is a lot less than what a lot of my friends pay. Thankfully, I have never had to spend that much! I lived in student towns and then in a small town where it really wasn’t that bad, and then we bought a place of our own.

    • David @ MoneyNing.com says:

      Now that you have a place of your own, you may even want to rent them out to your friends if they are paying $1,000 in rent! Think about it, rent two rooms out and you’ll be $2,000 richer every month!

Leave a Comment