RV vs Tiny Home: Which Is Cheaper to Live In?
Oct 19, 2025
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When you ask yourself whether RV living or a tiny home is cheaper, you’re really weighing two very different ways of staying mobile. Both promise freedom from a traditional lease, but the price tags differ wildly depending on where you live, how often you travel, and what level of comfort you expect.
Cost isn’t just the purchase price. To get a clear picture you need to add up recurring expenses - fuel, electricity, water, campsite fees, insurance, maintenance, and even taxes. Think of it as a monthly budget rather than a one‑off bill.
RVs come in many shapes: motorhomes, Class A, B, and C models, and towable campervans. Here’s how the numbers stack up in Australia, the U.S., and the UK.
A tiny home can be a prefab cabin, a converted shipping container, or a DIY build on a trailer. The upfront cost varies, but the ongoing expenses are often lower because you’re not paying for a vehicle.
Emily, a freelance photographer from Melbourne, bought a 30‑foot Class C motorhome for AU$180,000 in 2022. She drives 12,000 km a year, stays in paid sites 80 nights, and spends AU$4,500 on fuel. Her total annual outlay sits at roughly AU$13,000.
James and Maya, a couple from Brisbane, opted for a 25 m² prefabricated tiny home on a 0.5‑acre lease. Their land costs AU$250 per week, they generate most electricity with a 3 kW solar array, and they pay AU$900 for water. Their yearly cost totals about AU$9,500.
| Expense | RV living | Tiny home |
|---|---|---|
| Purchase amortisation* (5‑year) | AU$30,000 | AU$16,000 |
| Fuel / land lease | AU$3,200 | AU$13,000 |
| Campsite / utilities | AU$6,500 | AU$1,500 |
| Insurance | AU$1,800 | AU$1,000 |
| Maintenance | AU$1,500 | AU$800 |
| Total | AU$42,000 | AU$33,300 |
*Amortisation spreads the upfront purchase price over five years, a common loan term for both options.
Both lifestyles have expenses that creep up over time.
If your primary goal is to travel extensively and you don’t mind higher fuel and campsite fees, an RV can be the cheaper route in the short term, especially when you rent instead of buying. If you prefer a semi‑permanent base, lower ongoing costs, and the freedom to customise your space, a tiny home usually wins the long‑run budget battle.
Yes, many companies offer weekly or monthly hire. Renting removes depreciation and upfront financing, but you’ll pay higher daily rates and still cover fuel and campsite fees.
In Australia a standard car licence (Class C) covers motorhomes up to 4.5 tonnes. Larger Class A vehicles require a heavy‑vehicle licence.
Generally no. Most councils classify tiny homes as dwellings, which need a land parcel with appropriate zoning. Some states allow short‑term stays on designated caravan parks.
Motorhome insurance in Australia averages AU$1,500‑$2,500 per year, covering vehicle damage and liability. Tiny home insurance is similar to caravan cover, around AU$800‑$1,200 annually.
A tiny home on renewable energy usually has a smaller footprint than an RV, which burns diesel. However, if you drive an RV infrequently, the difference narrows.
