Why More Retirees Are Choosing RV Living: Financial Benefits and Drawbacks
Written by
J. David Herman
Edited by
Amber Barkley
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For many retirees, it’s easy to romanticize RV living. Imagine hitting the open road, setting up home pretty much wherever you want, getting into adventures… Throw in the possibility of saving money, and it probably sounds even better.
RVing has grown in popularity in recent years, and not just for occasional trips. An increasing number of retirees are deciding to live in RVs year-round. According to a study by the RV Industry Association, RV ownership has spiked 62% over the last two decades. About half of the record 11.2 million households that own RVs include folks 55 and over.
If you’re considering living in an RV, check out this cost comparison of an RV versus a house in retirement hotspot Florida.
Why Retirees Opt for an RV
Roughly 1.5% of RV owners are living in them year-round, according to the study. There are tradeoffs, but possible slashed living costs are part of the appeal.
“RVing gives freedom and control to retirees looking to travel while also having all the creature comforts of home,” said Monika Geraci, a spokesperson for the RV Industry Association. “They are able pick up and take that bucket list trip to the Grand Canyon or go visit their grandchildren but not have to deal with the hassles of other forms of travel.
“They can also control their environment and budget by bringing everything they need with them. RV travel is particularly conducive to traveling with pets, something that many retirees do.”
That said, there are multiple factors to consider before you take the full-time RV plunge. Are you sure those smaller spaces won’t start to wear on you? Will you be able to maintain friendships and other social activities when you’re on the road? How much can an RV really feel like “home” to you? Are you ready to empty sewer tanks, deal with mail forwarding and sometimes struggle to find Wi-Fi access?
And how would full-time RV living affect your finances?
As with any large purchase — or massive lifestyle change — it pays to do some research. Before you sink that “For Sale” sign in front of your house and head to the RV dealership, here are some financial pros and cons to ponder.
Possible Financial Benefits
RV life comes with several money-saving perks.
Lower Your Housing Costs
RV living eliminates the need for mortgage payments, property taxes and maintenance costs associated with traditional homeownership. By downsizing to an RV, retirees can significantly reduce their housing costs.
Slash Those Utility Bills
RVs typically require less energy for heating, cooling and powering appliances, resulting in lower utility bills. This reduction can lead to substantial savings over time.
Stretch Your Travel Budget
RV living allows retirees to explore the country without incurring hotel or rental costs. By traveling during the off-season or taking advantage of affordable RV parks, retirees can stretch their travel budget further.
Geraci cited a 2023 study by the CBRE Hotels Advisory Group to demonstrate.
“In one example, a couple traveling from Seattle, Washington to Yellowstone National Park would expect to spend $11,328 for a 14-day vacation traveling via airplane, rental car and vacation home rental,” Geraci said. “A similar vacation in a Class B motorhome for the couple would cost $4,606, a savings of 60%.”
Go Where the Taxes Are Lower
RV living often simplifies tax obligations, as retirees can claim residency in states with lower tax burdens or no state income tax.
Buy Less Stuff
When you live in an RV, space is at a premium. You may save money just by not having anywhere to put a bunch of new purchases.
Possible Financial Drawbacks
Of course, there are some expenses involved with living in an RV.
Watch Out for Sticker Shock
Purchasing an RV can be a significant upfront expense, ranging from $10,000 to well over $100,000, depending on size and amenities.
Don’t Forget the Décor
There’s a whole subculture out there for RV décor and space optimization. Be ready to drop some money making your rig feel like a home.
Keeping Your RV Running Can be Pricey
RVs require regular maintenance to ensure optimal performance. Repairs can be costly, especially for complex systems like plumbing and electrical.
Gas and Insurance? Bring Your Wallet
RVs aren’t usually known for their fuel efficiency, so be sure to budget sufficiently. Insurance premiums can also be substantial, especially for larger vehicles.
Healthcare May be Less Convenient and More Expensive
RV living often means frequent relocation, which can disrupt healthcare routines and access to specialized medical services. Check into whether your healthcare insurance will cover you across state lines.
“Factoring the full cost of RV ownership is important,” Geraci said. “From insurance to storage and, of course, budgeting for regular maintenance is critical to not having any surprises.”
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