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Of the various monthly bills Americans face, housing is easily the largest. Recent research amassed by The Motley Fool Ascent found that as of 2023, Americans spent an average of $2,120 per month on housing, or $25,436 per year. That’s a 5% increase from 2022.

If you’re having a hard time sticking to a budget because housing eats up such a large chunk of your income, then it may be time to look at ways to lower that expense. Here are some options, depending on whether you own a home or rent.

If you own a home

If you own a home, picking up and moving to a less expensive place isn’t exactly easy. But you may be able to make your current home more affordable.

First, see if refinancing your mortgage makes sense for your situation. If you signed your loan back in 2020 or 2021, when mortgage rates were at record lows, then there may not be any savings opportunities right now (or, frankly, in your lifetime, because sub-3% mortgages may be a thing of the past).

But if you signed your mortgage in 2023, for example, then perhaps you’re locked into a rate that’s well above 7%. Even though mortgage rates are up slightly this October compared to September, the average 30-year loan rate as of Oct. 10 was 6.32%.

If you locked in a mortgage last year at 7.4%, then a rate of 6.32% is a big improvement, so it pays to see what refinance offers you qualify for. Click here for a list of the best mortgage lenders to reach out to.

Another option worth considering is seeing if you can make money from your home. If you have a finished basement you’re not using, you may be able to rent it out (but first check with your local zoning authority to make sure that’s legal).

You may also be able to rent out your home on a short-term basis — for example, if you’re going home for the holidays for 10 days and live in an area near tourist attractions. Someone may be willing to rent your home for that period, which puts extra cash in your pocket. And platforms like Airbnb and Vrbo make finding a short-term renter a snap.

If you rent a home

If you’re a renter and are having trouble keeping up with your housing payments, you may be able to move once your lease comes up for renewal. But if the cost of a move will outweigh your monthly savings on rent, or if you’re already in a pretty cheap rental given your area, then getting a roommate could be a good bet. A roommate gives you someone to not only split rent with, but share in the cost of utilities.

Another option? Try negotiating with your landlord if you’re a tenant with a strong track record of paying on time.

One thing landlords do not enjoy is having to fill vacancies. Rentals that sit empty cost landlords money. If you’ve been in your home for a couple of years and have paid on time every month, call your landlord and ask if there’s any wiggle room.

Say you’re paying $1,500 a month in rent for a one-bedroom apartment, and you really need to shave $100 off of your monthly costs. You could point out to your landlord that if your unit sits vacant for even a single month, your landlord is out $1,500. If they’re willing to let you pay $1,400 a month, they’re only losing $1,200 — but gaining the benefit of keeping a reliable tenant.

It’s not so shocking that housing expenses rose from 2022 to 2023. After all, expenses in general tend to increase from one year to the next. But if you’re having a hard time managing your bills given what you spend on housing, then it pays to find ways to lower that expense.

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