Antonyms of palace:
economical, frugal, meager, spare, stingy, thrifty, ascetic, austere, humble, no-frills, spartan.
Examples of usage:
  1. There are places less like heaven than her palace.
    "Caves of Terror", Talbot Mundy.
  2. My heart was with them; Anthony's, too, and his work permitted him to conduct his heart along the way that they must take, while I had to conduct the Set to the Winter Palace Hotel, and give them tea on the terrace.
    "It Happened in Egypt", C. N. Williamson A. M. Williamson.
  3. Don't let's live in this horrid palace.
    "The Hunter Cats of Connorloa", Helen Jackson.