Housing in Spiti is heavily dictated by the extreme climate. Traditional architecture utilizes sun-dried mud bricks, rammed earth, and timber. Houses feature thick walls to provide insulation against the freezing winters and flat roofs made of twigs and compacted earth, which are used to dry firewood, animal fodder, and crops during the summer.
Villages are typically clustered tightly together on mountain slopes to conserve arable land. The ground floor of a traditional home is often reserved for livestock, generating ambient heat for the living quarters above. The central room usually features a traditional stove (tandoor) that serves as the focal point of family life during winter.
In recent years, the housing market has shifted. In the administrative hub of Kaza, modern concrete structures are becoming common, though many locals argue they are less insulated than traditional mud homes. The rise of tourism has led nearly every village to convert spare rooms into homestays, providing affordable housing for travelers and supplemental income for families.