Options To Beat High Housing Prices

Richard Montgomery on Apr 15, 2025

Dear Monty: My wife and I are discouraged by mainstream media's continuing reports on record-high home prices. We have saved a 20% down payment by living frugally. Still, we are afraid the houses we can afford are shrinking in size and amenities. We are also concerned that we are in a housing bubble. Is this a good time to buy a home?

Monty's Answer: Predicting the future is difficult. Let's provide you with some options to consider. The mainstream media depends on several sources of data to predict how the market will behave in the future. While CoreLogic (now renamed Cotality) remains a significant data provider, platforms such as Redfin and Zillow now offer comprehensive real-time analytics and predictive tools that allow prospective buyers to track neighborhood-specific trends.

Media reports often focus on national averages or hot markets that generate headlines, potentially creating a skewed perception of affordability. Housing markets are hyperlocal, with substantial variations even within the same city. Today's digital tools allow you to analyze micromarket trends, price-to-rent ratios and affordability indexes specific to your target neighborhoods. By researching, you'll make decisions based on local data rather than national headlines or incorrect assumptions.

Change Your Housing Goals

Investigate housing opportunities that are the opposite of what most people are seeking. Here are five possibilities that may not be experiencing double-digit inflation:

No. 1: Browse hidden or off-beat neighborhoods: In many communities, buyers often overlook some areas. Today's remote work revolution has expanded viable options beyond traditional commuter zones. Some previously overlooked neighborhoods are experiencing revitalization through community investment programs or becoming designated opportunity zones, offering both affordability and growth potential. Use the internet to search for municipal offices in the city you want to live in.

No. 2: Look into adaptive reuse: Buildings not constructed as single-family homes can offer unique living spaces at competitive prices. This trend has accelerated with commercial-to-residential conversions following pandemic-related office vacancies. Former retail spaces, schools and small office buildings increasingly feature in residential listings, often combining character with lower price points.

No. 3: Buy a home no one wants: Properties that remain unsold may need vision and work, but they often represent significant value opportunities. Digital listing platforms now make it easier to identify expired listings and properties on the market for extended periods. Modern renovation loan options such as FHA 203(k) or Fannie Mae HomeStyle loans can package purchase and renovation costs into a single mortgage.

No. 4: Live in the country: Rural areas continue to offer better values, and improved internet infrastructure has made remote work more viable in these locations. Many rural communities now actively recruit remote workers with incentive programs, and the USDA Rural Development loan program remains an excellent zero-down financing option for eligible areas and buyers. Check out Rural Innovation Initiative's website to learn about a program creating innovation in smaller communities that are working to revitalize.

No. 5: Consider prefabricated and alternative housing: This sector has evolved beyond basic kit homes. Modern manufactured homes and 3D-printed and container homes offer quality, sustainability and affordability. Some of these companies are relatively new and still iterating, so be cautious and extra diligent. Some new modular homes now achieve near-net-zero energy consumption, offsetting purchase prices with long-term energy savings. Several states have also revised zoning laws to accommodate accessory dwelling units (ADUs), creating additional pathways to homeownership.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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