The housing market in Solan has seen immense growth over the past two decades. As the city is sandwiched between the plains and the higher Himalayas, it attracts retirees, students, and professionals looking for a temperate climate without the extreme cold of Shimla.
Housing options range from traditional Himachali sloping-roof homes to modern, multi-story apartment complexes. Because of rapid expansion, neighborhoods have dense layouts with high demand for rental properties. Condominiums and independent floors are increasingly popular. The state's strict land laws (Section 118 of the Tenancy and Land Reforms Act) restrict non-agriculturists from buying land directly, which has led to a boom in legally approved apartment projects designed specifically to cater to buyers from outside the state.