{"id":104727,"date":"2025-08-06T15:25:19","date_gmt":"2025-08-06T22:25:19","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=104727"},"modified":"2025-08-06T15:29:47","modified_gmt":"2025-08-06T22:29:47","slug":"house-hacking","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/house-hacking\/","title":{"rendered":"House Hacking: What Is It, and Why Is It So Popular?"},"content":{"rendered":"

Imagine owning a home and having someone else help pay your mortgage. Among younger generations, <\/span>many of whom<\/span><\/a> see homeownership as simply a pipe dream, this sounds almost too good to be true. Housing is the <\/span>largest expense<\/span><\/a> for most Americans, after all, and it\u2019s become <\/span>more expensive<\/span><\/a> than ever.<\/span><\/p>\n

But some resourceful buyers have been able to spend less and even live for free in their own home. Enter: \u201chouse hacking.\u201d<\/span><\/p>\n

What is house hacking?<\/span><\/h2>\n

House hacking is a strategy where homeowners rent out part of a single-family home \u2013 or units in a multifamily property \u2013 to offset or even eliminate housing costs. It\u2019s a new name for an old practice, but still a great way for buyers who might otherwise be priced out to purchase a home.<\/span><\/p>\n

In some cases, house hacking can even turn a residence into an income-generating asset, which may be appealing to those looking to break into real estate investing \u2013 especially as investor activity <\/span>falls<\/span><\/a>. House hacking differs from owning a traditional investment property because you\u2019re not renting out the entire home; you’re living in it, too.<\/span><\/p>\n

So, if you\u2019re looking for a way to make homeownership more affordable or want to begin your investment journey, house hacking could be a good place to start.<\/span><\/p>\n

Why is house hacking popular?<\/span><\/h2>\n

House hacking is popular because it offers an achievable path into homeownership without bearing the full financial burden alone. It\u2019s seen as a way to \u201chack\u201d the market by removing some of the cost. Many also use it as a first step into real estate investing.<\/span><\/p>\n

Its <\/span>popularity has steadily grown<\/span><\/a> over the past few years as housing costs have <\/span>ballooned<\/span><\/a>. In many markets, buyers now need to earn six figures to <\/span>afford a starter home<\/span><\/a> \u2013 and far more in pricier cities.\u00a0<\/span><\/p>\n

While some house hackers earn a profit, many today are simply looking to reduce their living expenses. With record-high home prices and elevated mortgage rates, the cost of entry is steep \u2013 and extra income is not guaranteed.\u00a0<\/span><\/p>\n

House hacking strategies<\/span><\/h2>\n

House hacking usually involves renting out a room or unit in a home, but there are endless alternatives. You can rent out a pool, basement, and even parking spots. You\u2019re only limited by your creativity, zoning laws, and a homeowners association (HOA)<\/a> if applicable.\u00a0<\/span><\/p>\n

Here are some common strategies:<\/span><\/p>\n