When Bay Area rent got too expensive, I bought a house in the mountains. Living here is a dream, but I'm uncertain about the future.

• Katie Sarna left San Francisco due to high rent and bought a house in Boulder Creek, California.
• She and her husband faced challenges in the competitive housing market and mortgage approval process.

This as-told-to essay is based on a conversation with Katie Sarna, the 38-year-old cofounder and CEO of Santa Cruz Fungi based in Boulder Creek, California. It's been edited for length and clarity.

I'm the cofounder and CEO of Santa Cruz Fungi. I live in Boulder Creek, California, and my business is headquartered in Santa Cruz.

For the past 17 years, I've worked on and off as a freelance creative for luxury beauty, skincare, and fashion brands. I've also been an art director and a content marketing manager.

I lived in San Francisco for about three years. In May 2016, I bought a home for my husband, Paul Lazazzera, and me in Boulder Creek. We married the following year, and Paul started our business in 2021.

The housing market in the San Francisco area was brutal

When I lived in the SF area, I was completely sticker-shocked by my $1,450 a month bedroom (in a two-bedroom apartment), which could barely fit a bed and dresser. I started dating Paul, who lived in Santa Cruz, about an hour and a half away.

When my roommate moved out, I couldn't afford the $3,000 rent by myself, so I put the spare room on Airbnb. One afternoon, my landlord called and told me she knew what I had been doing. I had to cancel all my bookings in front of her or face eviction and swift legal action.

I called Paul and asked him if it was now a good time to move in together in Santa Cruz since I would probably get evicted regardless. We agreed to split the rent based on our income.

I immediately started looking to buy because rundown rentals were going for more than $3,600 a month, and the competition was fierce.

We had to expand our home search and found Boulder Creek

I started actively working with a real-estate agent, going to open houses, and getting mortgage pre-approval in September 2015.

The homebuying process in Santa Cruz was extremely stressful. We wanted to live in Santa Cruz proper, but I couldn't afford even the lowest-priced home.

Without any investment knowledge and using a traditional savings account, growing my savings to reach my down payment goal was a complete slog. I regret doing it this way a little, but now I know how to handle my finances better.

The most frustrating part was applying for a mortgage. Despite having saved 20% for the down payment, the banks saw Paul, a newer teacher living paycheck to paycheck, as more "stable" and wouldn't lend without him involved.

It was infuriating because he was not contributing financially to the home purchase. Since we were only dating then, I hesitated to take out a mortgage with him.

My budget was a tight $500,000. Our search expanded and I made two dead-end offers. I had to go over my budget and closed at $535,000 almost a year later on a 740-square-foot house set on half an acre in Boulder Creek.

This property also has a tiny home, which we rent for $1,500 a month to a wonderful long-term tenant, helping to reduce our expenses. It's truly a dream come true, and I am thankful to wake up here every day.

Boulder Creek is a very small town with challenges

Boulder Creek has no traffic lights, just one three-way stop sign in the middle of town. It's about 14 miles to Santa Cruz and 68 miles to San Francisco.

This area is not for the faint of heart. We often lose power for no apparent reason, and winters can be especially tough.

We were evacuated in August 2020 due to the CZU Lightning Complex fires. In 2023, multiple atmospheric rivers and a bomb cyclone caused significant damage, turning the county into a disaster zone.

I used to love the anonymity of big-city life

I thought I'd surely die in a tuna can-sized walk-up in New York City with 10 tiny dogs, but now I'm living the exact opposite life, and I wouldn't trade it.

I do miss San Francisco at times, especially the abundance of incredible food, the constant buzz of events happening around the clock, and the city's unique energy.

But I love our welcoming space and knowing all my neighbors on our road. We live in a special spot, surrounded by some of the coolest and most unique people you'll ever meet — ex-pro skaters, astrobiologists, and fifth-generation loggers, all tucked into the mossy nooks and hobbit holes of the Santa Cruz mountains. Our neighbors truly care for us, and they even support our business.

The lower cost of living compared to San Francisco allows us to allocate more resources to our bootstrapped business

Santa Cruz Fungi was born from our shared passion for mushrooms. After 2020, Paul left teaching to start a culinary mushroom farm on our property, which sparked our side quest to incorporate mushrooms into our diet beyond savory dishes.

In May 2023, we decided to launch Shroomsicles, organic, non-dairy popsicles, and I joined as cofounder and majority owner.

Our venture combines our love for healthy, innovative treats with the supportive local community, significantly contributing to our business's growth and success. We participate in many local events, and the response to our products has been overwhelmingly positive.

I love where we live

Living in the mountains and vending at smaller events is a recipe for meeting great people in our community. There's always a bonding moment when someone says, "I live here, too!"

I see myself staying here for the foreseeable future.

However, with the increasing risks of wildfires and skyrocketing insurance costs, staying long-term feels uncertain — but time will tell.

Want to tell your story? Email Lauryn Haas at lhaas@businessinsider.com.