Is It Cheaper to Live in an RV than a House?

RV living has become increasingly popular in the US for numerous reasons, one being the trend of living life beyond the norms. RVing provides more flexibility and an unconventional lifestyle with the comfort of a kitchen, bedroom, appliances, and more.

But, the million-dollar question remains; Is it cheaper to live in an RV than a house? For many people, it is. For a personalized answer, you will need to do some calculations. Factors like the vehicle you choose, where you decide to park, and utilities, play a significant role in determining whether RV living will cost you less.

In this article, I will break down the cost of RV living and house ownership to see which one is cheaper. Also, I will discuss the pros and cons of both lifestyles and explore actionable tips that can make RV living even more cost-effective.

What is the average monthly cost of RV living?

Broadly speaking, the average monthly cost of trailer living can lie between $825 and $1,750. Here's a detailed breakdown:

RV price

If you decide to pay for your vehicle in monthly installments, this can significantly increase your monthly expenses. A class C RV costs around $30,000-$400,000. Even if you go for a van on the lower end, with a loan term ranging from 10-20 years, you can expect to pay $1500-$3000 monthly.

Campground fee

A campground fee is one of the major monthly expenses for the RVers. Usually, the campground fee can be around $20-$40 per night. For more luxurious spaces, with a range of facilities, the cost can go up to $80 per night.

Utilities (electricity, water, and sewer)

The water and sewer cost is included in your lot rent. However, for electricity, you will be charged per unit.

Your monthly electricity bill will depend on the units you consume. For RV owners who have a reasonable number of appliances installed and implement energy-efficient practices, the electricity bill wouldn't normally go over $100.

Fuel

With fuel prices going up, you can expect to pay around $500 a month in gas expenses. If your camper runs on diesel, the total cost can go even higher.

Maintenance and repairs

Common repair and maintenance expenses include brake jobs, oil changes, and filter replacements. It is recommended to keep aside $200 to $300 every month for maintenance and repairs so your vehicle is ready to hit the road any time.

Phone and internet plans

RVers can access the internet using one of the three main options:

1. Cellular data plan.
2. Surrounding Wi-Fi devices.
3. Satellite internet

Depending on the plan you use, phone and internet bills can range from $50-$100 a month.

What is the average monthly cost for house ownership?

The monthly average cost of house ownership is around $1500 to over $2,000. Here's a detailed breakdown:

Mortgage

Unless you can pay for the house all at once, the mortgage will be the biggest expense of owning a house. Your monthly mortgage will depend on factors like house price, down payment, loan terms, etc.

While the average home loan rates keep changing, the current average payment is $2,715 on a 30-year fixed mortgage.

Property taxes

Depending on where you live, your schedule for paying property taxes can vary from annually, to biannually or monthly. The amount you pay is calculated using your house's market value and the tax rate in your area. Median property tax can be as low as $742/year (Alabama) or as high as $8,928/year (New Jersey).

Utilities

Mostly, utilities like water are metered and if they're not, their price will depend on the size of your house. On average, Americans pay around $400 for their utility bills per month. This amount can be more or less, depending on your monthly utility usage.

Maintenance

Your house will need maintenance over time. Generally, you can expect your home's maintenance expense to be around 1% of your property's value per year ($2500 for a $250,000 house).

HOA fees (if applicable)

Homeowners pay HOA fees to the homeowners association for maintenance of shared spaces like hallways, parking lots, etc. The average monthly HOA fee in the US is $190.

Is it cheaper to live in an RV than a house?

For individuals or couples who do not require large-sized camper vans, living in an RV tends to be cheaper. Here's a cost comparison:

House living cost

1. Mortgage: around $2,715.
2. Property tax: $742 to $8,928.
3. Utilities: $400
4. Maintenance: $1,180 per month on average.
5. HOA fees (if applicable): $190.

RV living cost

1. RV price: $30,000 to $400,000 for class C vans.
2. Campsite fee: $20 to $40.
3. Utilities: around $100.
4. Fuel: around $500.
5. Maintenance and repairs: $200 to $300.

Given the cost comparison above, an RV seems to be a cheaper living option. However, for different people, various factors pitch in while deciding which lifestyle is cheaper.

For instance, if you prefer a spacious home or have a significant utility usage per month, sticking with a house may be a better option financially.

Your location also plays a role in determining your RV's living cost. Utility bills and campground fees can vary from region to region.

Advantages and disadvantages of RV living and house ownership

House ownership and RV living both have their pros and cons. They will help you determine which lifestyle will suit you best.

Pros of RV living

• Freedom: Camper van living gives you the freedom to move if you're not happy with your current location.
• Minimalist lifestyle: Many RVers love how their mobile home offers a minimalist lifestyle and is quick to clean.
• Cheaper: Living in an RV saves you from hefty mortgages, property taxes, and house maintenance costs.

Cons of RV living

• Limited space: You're likely to find yourself struggling to work in cramped spaces and using each area for multiple purposes.
• Weather: Extreme weather conditions like tornados impact RVers more than homeowners.
• Sewer: Unlike a house, RV living calls for emptying your vehicle's waste-holding tanks yourself.

Pros of living in a house

• Plenty of space: Houses have more space than RVs letting you have larger spaces for kitchens, bedrooms, bathrooms, etc.
• Mail delivery: Receiving mail is way more convenient with house living as compared to RV living.
• Stability: Living in the same area for a long time keeps you prepared for where to go for groceries, medicine, etc.

Cons of living in a house

• Higher cost: Mortgage, property tax, HOA fees, and more can add up to thousands of dollars quickly.
• Decrease in property value: Homeowners constantly worry about their property's price going down making them lose money.
• Less flexibility: Once you've bought a house, moving isn't easy even if location-related problems arise.

Who benefits financially from RV living compared to house living?

RV living typically benefits retirees, digital nomads, individuals, and couples who seek a minimalist lifestyle. They can usually make ends meet without luxury facilities, hence, saving a significant amount. Also, couples and individuals don't require a huge space, which allows them to buy a small to mid-sized RV and costs significantly less than a house.

Now, who may not financially benefit from RV living? Mostly, families with kids. Living with kids brings numerous challenges and you wouldn't want to add more issues like lack of space to that. If you decide to buy a large-sized van to tackle that, keep in mind that the cost can go up in hundreds of thousands of dollars.

Additionally, families require more of everything. Be it space, electricity, water, or any other basic necessity, this can add a significant amount to your monthly average cost.

Tips to save money while living in an RV

Want to make RV living even more affordable? Follow these tips below:

1. Use solar panels

To cut down on electricity costs, go for portable solar panels. Installing solar panels may seem expensive upfront, but it can prove to be one of your wisest investments in the long run.

However, just a solar panel is not enough, it needs to be good quality like the ones Renogy offers. Renogy brings PERC monocrystalline that captures more light providing more power.

2. Save on campgrounds

When choosing a campsite, either go for a cheaper or free-of-cost option. Some areas on public lands serve as free campgrounds most of which are located on BLM (Bureaucracy of Land Management) areas.

3. Stay at a location for longer

Staying at one location for longer saves fuel and makes you eligible for campsite fee discounts. Many parks offer weekly or monthly prices, less than what you may get when staying for a few days only.

Conclusion

Many people assume that a straightforward answer to the question "Is it cheaper to live in an RV?" is "Yes". However, this isn't the case. The answer depends on your needs.

If you need more space and amenities probably because of a larger family, trailer living will cost as much or maybe even more than a house.

On the flip side, couples or individuals may benefit from the mobile home as a small to mid-sized van provides enough space for them and is significantly cheaper than a house.

Before switching to nomad life, lay out your requirements to see which lifestyle will suit you best.

Frequently asked questions

What are the potential cost savings of living in an RV compared to a house?

RV living saves multiple expenses such as property taxes, mortgage, and hefty maintenance. Even though RVs are more prone to damage, as things fall or break while driving, house maintenance costs are still higher.

Living in a camper full-time, you also save on sewer, trash, and cable bills.

What are the hidden costs of RV living?

Because trailers don't have as much space as a house, you can't fit in every appliance. One of the devices RVers may leave out is a washing machine. This leads to using campground facilities or laundromats which can add to the cost. Also, if your vehicle gets towed, more wear and tear will be left on it hence another additional expense.

How long will an RV last if you live in it?

Generally, around two decades is a reasonable lifespan for a well-maintained camper van. However, other factors like how much you travel, roof leaks, batteries, and the terrain you drive on also affect your vehicle's longevity.