Lo-fi house is a form of Outsider House that developed in the mid-2010s. It is primarily distinguished from earlier styles of outsider house by its stricter reliance on deep house elements, cranky, nocturnal, and nostalgic atmospheres, and a distinct dreamy, lo-fi aesthetic, in contrast with earlier outsider house styles that incorporated many influences including Techno-inspired percussion and harsher-sounding synths derived from Acid Techno and Acid House. Lo-fi house took major influences from the earlier works of artists like Anthony Naples and LA Vampires's, who only represented a specific section of the wider early 2010s outsider house (and outsider dance) sound.

Mainly popularized by labels like Lobster Theremin and Coastal Haze and artists such as Mall Grab, DJ Seinfeld, Grant, DJ Boring, Ross From Friends, and dj poolboi, the style mainly emerged in the mid-2010s, quickly receiving an online presence through platforms like YouTube, SoundCloud and Bandcamp. Much of the style's aesthetic design revolves around references to 1990s pop culture like popular sitcoms, and YouTube promotion channels often paired the music with fittingly nostalgic visuals inspired by old VHS tapes and other old media outlets. Though overall more stylistically uniform than its predecessor, lo-fi house productions remained as eclectic as in earlier styles, with artists introducing elements of Disco and Nu-Disco, French House, Progressive House, Funky House, and even Future Garage. The Hypnagogic Pop movement was especially influential to outsider house and lo-fi house, with producers applying its nostalgic approach to old popular music and its hazy, dreamy ambiance, to house music. The Vapor movement's online popularity, assisted the growth of the similarly-minded genres, with many producers or even set-makers borrowing its distinct self-satirizing and consumerism-inspired imagery; lo-fi house in particular enjoyed some cross-over with Future Funk.