Housing in Manali is a mix of traditional Himachali architecture and modern concrete construction. Traditional homes in older villages (like Old Manali, Vashisht, and Prini) often utilize the *Kath-Kuni* style—interlocking wooden beams and stone without the use of mortar—which is highly resilient to earthquakes and provides excellent insulation against the cold.
Due to the boom in tourism, the real estate market is highly competitive and expensive. Much of the available land has been developed into hotels, resorts, and commercial guesthouses. Rental costs for long-term residents can vary wildly; affordable accommodations are often found further away from the main Mall Road area, while premium cottages and villas command high prices. Strict state laws (Section 118 of the HP Tenancy and Land Reforms Act) restrict non-agriculturists and out-of-state individuals from buying land, a measure intended to protect local landownership.