Many citizens in the U.S. have been increasingly embracing the van life, appreciating the flexible lifestyle it provides. The Recreational Vehicle Industry Association reported that 11.2 million households in the U.S. owned RVs in March 2021, a jump of 26% since 2011. A rising question, however, is – is it less expensive to live in an RV than to rent a property? Although situational and individual factors play a role, RV living can be less expensive than renting for many people, barring certain exceptions.
Let’s delve deeper and compare the costs involved in living in an RV vs. renting an apartment to determine the more affordable option.
COST OF LIVING IN AN RV
Several factors influence the cost of RV living, but it is generally seen that daily expenses tend to be noticeably lower. Regular outgoings like utility bills are often minimized or eliminated. The average expense for RV living can range from about $1,000 to as high as $5,000 per month.
In contrast, as of mid-2021, the average cost of owning a home in the U.S. was $374,900, which marks a 16% increase from the prior year. Homeowners typically spend around 29.5% of the median U.S. income, or approximately $20,000 per year, on mortgage payments.
Let’s now examine some specific costs associated with RV living:
FINANCING THE RV
Financing is a crucial consideration. Not everyone can afford to pay cash. The type of RV you select will vastly affect your overall costs. A small pop-up camper may cost about $10,000-$20,000 while a large motorhome could be priced at up to $300,000. If you opt for a travel trailer, you’ll need a towing vehicle, which could add approximately $500 to your monthly expenses.
FUEL
Fuel is a significant consideration when estimating the monthly cost of full-time RV living.
CAMPSITE FEES
Expect to pay anywhere from $300 a month to thousands of dollars for campsite fees, depending on the amenities provided.
VEHICLE INSURANCE
The insurance cost will vary based on your location and what you’re insuring, but you should budget around $3,000 per year.
OTHER COSTS
Other costs to consider include; laundry expenses, mail service, pet expenses and RV wash, among others.
RV VS RENTING APARTMENT: COST COMPARISON
A quick glance at the average costs of living in an RV compared to renting an apartment can provide an idea of the financial implications of each option.
PROS AND CONS: RV LIVING VS RENTING A HOUSE
While each has its advantages, the choice between RV life or renting is deeply personal.
Some of the advantages of RV living include freedom and flexibility, lower ongoing costs, and a closer connection with nature. However, there are also downsides such as limited space, potentially expensive maintenance and repair issues, occasional inconveniences, and the possibility of isolation or loneliness.
THE BOTTOM LINE
While RV living can be more affordable than renting, the ultimate decision is determined by various factors. If you own the RV outright, your costs could be lower than renting an apartment. However, with expenses for fuel and RV maintenance, your costs could escalate.
Ultimately, it’s up to you to consider your own situation. Renting might appeal if you prize flexibility to relocate or don’t want the responsibility of homeownership. Alternatively, owning a home or an RV might be the better option for those looking to build equity and enjoy a space of their own.
Choosing the RV life could allow you to save money and immerse yourself in the great outdoors. But, for those desiring additional room and a larger budget, you might be better off renting an apartment.
Source: Smartasset.com
