Scott Smith lives in a yurt. Katie Simkover temporarily shared one bedroom in a five-bedroom house with two other women. Matt and Cheri Kelly trimmed their living space and their mortgage.

In La Plata County, where high housing costs are a major obstacle to financial security, sometimes residents must get creative and make sacrifices to keep their checkbooks balanced.

Financial experts recommend that a family spend less than 30 percent of its income on housing. A task easier said than done in the Durango-area market.

The median price for a single-family home in Durango was $390,000 during the third quarter of 2014, according to the most recent data available from the Durango Area Association of Realtors.

Durango-area costs are fueling demand for affordable homes in nearby areas, including Bayfield, where the median price was $252,500 during the third quarter of 2014.

Yurt living

Several years ago, Smith, 45, did something many would consider trendy today. He built a 706-square-foot home using mostly recycled materials, and he is confident he has a handle on his financial debt.

Smith was way ahead of the trend now extolled in television shows such as HGTV’s “Tiny House Hunting,” telling stories of families seeking to downsize for the financial benefits.

“I know it’s really trendy nowadays, but I was doing this close to 10 years ago,” said Smith, a freelance photographer with Imagesmith Photography.

His home is not a typical single-family house; it’s actually a yurt that cost him about $25,000 to build.

He purchased 2.25 acres in 2007 for $153,000. His total costs equate to less than $200,000, and he’s about halfway through paying his 15-year mortgage.

“I have been able to devote my finances to other resources,” he said.

Smith lives with his girlfriend, a dog and a cat. The 13.5 foot-high structure allowed him to build upward, so he was able to add a loft. He describes his living quarters as “cozy.”

While many might consider yurt living rugged, Smith said he is quite comfortable. His yurt is equipped with a legally inspected septic system and electricity. Smith even has a hot tub – an older model given to him that he restored.

So what’s his monthly electric bill look like? It’s about $25 a month, less than $1 a day, he said.

He doesn’t deny there are downsides to yurt living.

“I would absolutely love a garage or workshop to put my tools in,” he said.

The structure also gets really cold during the winter months, but it’s equipped with a wood stove.

It’s not a lifestyle suited for everyone, he said. And within the next two years, he intends to upgrade: He plans to take down the yurt and build a modest two-bedroom home, somewhere around 1,000 square feet.

Until that time, Smith will continue to embrace alternative living.

“I love living in the yurt. It’s an awesome place to live,” he said.

Sharing a room

Not everyone has the skills or finances to build a tiny home, but living with roommates can trim living expenses.

Simkover, 27, moved to Durango in 2010 from California after she graduated from college. She accepted a service position with the Southwest Conservation Corps, a job requiring her to be in the field for 10 consecutive days, followed by four days off.

Because she was spending most of her time away from home, Simkover couldn’t justify paying rent. She also didn’t want to live in a motel or in a car.

Her solution? She and two other women she worked with rented a single bedroom in a five-bedroom house.

“We weren’t home enough to make rent really worth it,” she said.

Each roommate paid $133 monthly rent, and they had minimal furniture, a mattress each.

A downside to the arrangement was having three adults sharing sleeping quarters during their four days off.

Simkover’s living situation was temporary and lasted only about six months, she said.

Downsizing

When you are neck-deep in debt and locked into a high mortgage, downsizing can make a huge difference.

Matt Kelly, personal finance coach with Momentum Personal Finance, was able to pay off $165,000 in debt in 15 months by making major cutbacks.

Kelly and his wife, Cheri, sold their 1,400-square-foot townhouse for $320,000 and purchased an 863-square-foot condo for $200,000, alleviating their debt. Though the Kellys, including their 13-year-old son, Malcolm, reduced their space by about 40 percent, they were able to pay off an exorbitant amount of debt and save $20,000 in just over a year, he said.

Homes are generally the most expensive things people own and can be a large portion of their debt.

If you can’t sell or downsize your home, you can improve your financial situation by selling your car and buying a less expensive car with cash to eliminate car payments, Matt Kelly said.

“One of the best ways to save money and get out of debt,” he said, “is to sell that debt to someone else.”

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Money-saving tips

Matt Kelly, personal finance coach with Momentum Personal Finance, offers these idea for cutting back on your expenses:
Take your lunch to work: Save about $2,000 a year.
Make your own coffee: Save between $300 and $1,500 a year.
Don’t buy soda or energy drinks: A 12-pack of Red Bull is $17, which is more than a case of beer.
Quit smoking: A pack of cigarettes costs an average of $6.
Eat dinner at home: If you eat out twice a week, you could be spending more than $3,000 a year.
Pay with cash: This helps avoid accruing credit-card debt and overdraft fees.
Rediscover the library: Rent the books you read or movies you watch instead of buying them.
Get rid of storage units: You are essentially paying for a house for items that don’t fit in your house.
Buy less meat and cheese: These are some of the more expensive grocery items. Consuming less of them also may help your health. Also, cut out junk food.
Balance your checkbook: Keeping up to date on your bank balance helps you know how much you have to spend, and helps you avoid overdraft fees.
Raise your car insurance deductible: The higher your deductible, the less your premium is.