Real Estate Trends: The Rise in Alternative Housing
It's a challenging time for potential homeowners in the U.S. The real estate market is definitely not in its prime, with skyrocketing home prices and rising mortgage rates have made it tough for people to buy homes. For some, saving for a deposit feels like an impossible task. The combination of these factors has meant many are looking to tread away from the traditional path when it comes to homeownership.
In this article, we look at why alternative housing is on the rise and the different types of housing that are becoming popular. Read on to find out what they are.
What's driving the alternative housing trend?
There are a few different factors that are driving people away from the suburban sprawl or more traditional styles of housing. One of the biggest has to be cost, with rising prices and slower wage growth making the total cost of ownership feel impossible for those looking to purchase a home, especially from younger generations.
Another aspect fuelling a growing interest in non-traditional homes are environmental concerns. With more people looking to make sustainable or environmentally-ethical decisions, alternative homes that have less of a carbon footprint make for a great option.
There's a cultural shift taking place where individuals, couples and families are choosing to forgo the "big house" dream for minimalism, mobility and intentional living. It's definitely another factor that's causing many to think twice about what their "dream home" might look like.
The most popular types of alternative housing
Tiny houses
Tiny houses have become a popular trend over the years for homeowners. These small, self-contained dwellings are usually less than 400 sq. ft and suitable for year-round use. Tiny houses can differ, with some being mobile or fixed on a more traditional foundation. They're preferred by those who want to practice a more minimal lifestyle and also make for a more environmental option as they require fewer materials and less energy for lighting and heating.
Shipping containers
Shipping container homes have also become increasingly popular. Originally designed to carry goods, the steel boxes are now being repurposed into buildings that include micro-homes.
Shipping container houses are generally cheaper than building a conventional house because the main structure already exists, which also makes them eco-friendly and energy efficient. These units are also able to be constructed quickly as they're readily available and also enable creative design through flexible stacking. Outside of full conversions, shipping containers can also be adapted for other uses, like sheltered spaces that use a prefabricated roofing system or modular expansions.
Earth-based homes
Earth-based homes are structures that use the earth as a part of their thermal control system. More often than not they're built into a hillside, buried underground fully or partially covered by soil.
Earth-based homes offer a range of key benefits. First off they're energy efficient, using the earth's natural insulation to stabilise their temperature and reduce the need for other sources of cooling and heating. These types of homes can also be very durable thanks to the surrounding soil which gives them protection from the more extreme weather conditions.
Earth-based homes are also naturally soundproofed and offer natural light and ventilation. And of course they're sustainable — using the earth as their building material.
Houseboats
Houseboats are a form of alternative housing that have been around for centuries, but have been experiencing a rise in demand over the past few years. While being much more affordable than traditional homes, houseboats are also ideal for those who are looking for mobility and flexibility. With no fixed address, houseboats allow owners to change their scenery whenever they feel like, making them great for people who value adventure, seasonal living or travel.
Houseboats can be designed with a range of eco-friendly features like water filtration systems, composting toilets and solar panels. While their reduced land use reduces their ecological footprint due to their lessened impact on deforestation and urban sprawl.
Published 9/4/25