Housing in Paro reflects a fascinating blend of the ancient and the modern. In rural gewogs, families reside in large, multi-storied traditional Bhutanese farmhouses constructed from rammed earth and timber, featuring intricately painted wooden window frames and shingled roofs. These homes are designed to house livestock on the ground floor, humans on the middle, and drying crops in the open-air attic.
In and around Paro Town, urban development has led to the construction of concrete apartment buildings and modern commercial spaces, though strict national architectural guidelines require all modern buildings to feature traditional Bhutanese facades. Due to land scarcity in the valley and the booming tourism industry, real estate and rental prices in central Paro are among the highest in the country.