Reduce Your Housing Costs in Retirement

7 Ways to Reduce Your Housing Costs in Retirement

Housing and the costs to maintain a home are often a major part of a budget in retirement. If you fear that you’ve got too much house and you want affordability as well as other important things like maintenance free lifestyle, the ability to travel, or proximity to those you love, these options can really be good for you. 

Rent Out a Room

When you own your own home but feel it’s too big, a great solution is to rent out a room in the home. While you’ll want to establish your compatibility with your roommate, their payment is likely to be a nice boon to your budget and renting a room is an affordable option for people who are looking to pay less than what they’d pay for a studio apartment.

Build or Refurbish an ADU

If your property has a guest house, a separate-entrance furnished basement, or another accessory dwelling unit, you can get it move-in-ready and rent it either short-term or long-term. These units gain more income than renting a room, and they maintain a separation between your living space and theirs, giving you privacy.


Websites like Hipcamp allow people with acreage to offer campers to spend time on their property. It’s a non-conventional option, but finding a way to make money from your property is a valuable option – some people who live near attractions sell parking on their property, even!

Travel Via Home Swapping

Websites like Home Exchange allow people to host visitors in their own home in exchange for points to travel and stay in other people’s homes around the world. This can be an affordable way to subsidize your desire to travel. If you want to travel in an RV, you could also rent your whole house out while you tour the country. 

Sell Your House and Downsize

A big option if you’ve been paying on your mortgage for a while is to cash out by selling it, paying off any remaining mortgages or liens, and using that cash to purchase a smaller place. This is a chance to get to a better location that fits your needs, maybe even bringing you into walking distance to something that matters to you. It can also be a chance to spend less time cleaning and more time enjoying yourself.

Sell Your House and Rent

When you’re not exactly sure what your next move is in retirement, you can look for the right buyer and, when they come along, sell your house. Then, you can rent, either long-term or on a month-to-month lease, while deciding what the next move is. Retirement can be decades long, so you may have many goals during this time, and the flexibility of renting can appeal a lot. 

Move In With Friends or Family Members

Whether due to wanting to help with new babies or wanting some help with your own mobility or other challenges, many families find that intergenerational living is very rewarding. Also, if you have other retiring friends who are fun to be around, going in on a home together can save money while increasing companionship – a true win-win. 

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