Housing in Aalo presents a fascinating blend of the traditional and the modern. Traditional Galo houses are constructed on stilts using locally sourced bamboo, cane, timber, and thatch. These structures are designed to be resilient against the region's frequent heavy rains and seismic activity, keeping the living areas dry and well-ventilated.
As the town has urbanized, modern construction utilizing reinforced concrete, brick, and corrugated galvanized iron (CGI) roofs has become standard, particularly in the commercial center and government residential colonies. The housing market consists mostly of self-built single-family homes and government quarters. Rental properties exist, catering mostly to transient government workers, teachers, and defense personnel. While housing is generally affordable compared to major Indian metropolises, the cost of modern construction materials is high due to the distance from manufacturing hubs.

