8 Unconventional Means of Affording a Home in 2024 — Are They Right for Your Budget and Lifestyle?

It doesn’t take rocket science – or even extensive math — to figure out that it’s hard to afford a home in today’s economic climate. Housing prices are up, with the median sale price at $384,500 in February 2024, according to data from the National Association of Realtors.

But many Americans remain unwilling to abandon their dream of homeownership this year. They will do virtually whatever it takes to get financing and afford a house, according to a new study from the real estate agency RE/MAX.

The survey revealed that 80% of consumers planning to purchase a home in the next 12 months intend to adjust their plans, but 43% won’t let go of their end goal. Instead, they are considering these eight ways to afford homeownership in a market with high home prices, competitive bids, low inventory, and interest rates higher than we’ve seen in recent decades.

1. Settling for a Fixer-Upper

Finding a starter home that’s move-in ready is a homebuyers’ dream. You won’t have to deal with the stress of home repairs on top of moving and cleaning your new space. But 56% of prospective homebuyers today are revising their vision of their dream home to include one that needs repairs. The largest number (28%) said they would be willing to spend $30,000 to $50,000 for repairs and renovations.

If you’re willing to do the work, you may be able to find a great value in a foreclosure. Ninety-percent of the people polled who said they were willing to buy a fixer-upper also said they would consider a foreclosed home.

2. Buying a Tiny House or Prefab Home

Tiny homes can help reduce your loan amount and mortgage cost, but also your overall living expenses, making them a more affordable option. Of those polled, 82% said they would buy a tiny home to reduce costs, while 58% said they wanted less property to maintain.

Prefabricated homes may also be more affordable, so it’s not surprising 84% said they would consider that option.

3. Co-Buying a Home with a Friend or Family Member

Co-buying a house with a friend, family member or someone who isn’t a spouse or romantic partner is another way to bring your dream of homeownership to life. In a separate survey previously reported by GOBankingRates, 15% of Americans said they used this tactic to afford a home, while another 48% said they would consider it.

The RE/MAX survey similarly found that 28% of buyers would consider purchasing a home with a friend or family member, with 78% doing it to share the cost and 69% implying it would also help them afford a larger or nicer home in a more desirable area.

4. Looking at Multi-Family Homes

Whether you share the cost with a friend or family member or use the second living space for rental income, a multi-family home can significantly reduce mortgage expenses. You can live in one half and rent the other portion out as an investment property or share the mortgage costs with friends or family.

If you decide to co-buy, a multi-family home gives you the advantage of sharing costs with family or friends while maintaining a private space of your own.

5. Buying a Condo, Attached Home Or Townhouse

For some people, having a yard, a garage, and private space are part of the attractions of homeownership. But if you’re accustomed to apartment living, buying a condo, townhouse, or attached home within a private community won’t feel like a compromise.

According to the survey, 68% would consider this type of property to save money, while 57% want lower maintenance costs.

6. Super-Commuting

You may have to settle for a condo or similar housing community if you want to move near your job, as some towns and cities provide limited options for single-family homes. But if you’re willing to travel more than two hours for your job, a practice deemed “super-commuting,” you may be able to afford a more affordable home that provides the environment and neighborhood amenities you want.

Of the 13% of respondents who said they would consider super-commuting, 75% said they would do so for the right location, affordability, and flexibility to choose a place they like without having to change careers.

7. Alternative Financing

Revising your expectations when it comes to your new home isn’t the only tactic to make homeownership more affordable. Many people are also opting for alternative financing methods.

For instance, 34% said they would consider applying for a mortgage with less than 20% down. Options such as VA and FHA loans only require 3% to 5%.

On the other side of that coin, 21% of respondents were prepared to pay all cash for a home to avoid high interest rates (62%) and/or to avoid the hassle of the mortgage process (57%).

8. Borrowing Money From Family or Friends to Finance

A small percentage (17%) said they would consider borrowing money from family or friends to buy a house, with 52% saying they would borrow from their parents. This exemplifies facets of the Great Wealth Transfer, where some boomers are agreeing to pass on money to their children before they die. “They choose to fund their grandchildren’s college, make down payments or even support their children while they launch businesses,” Sean Lovison, CFP, CPA and founder of Purpose Built Financial Services, LLC, previously told GOBankingRates.com.

This article originally appeared on GOBankingRates.com: 8 Unconventional Means of Affording a Home in 2024 — Are They Right for Your Budget and Lifestyle?