Have you ever wanted to buy a house, but worry about what you will do when it’s time to move? What if you could bring your house with you?
More specifically, what if instead of a uHaul trailer, you drove… a boat?
In my aversion to white picket fence home ownership, I have been researching alternative living arrangements. Perhaps the most intriguing is the world of houseboats.
People who use a boat as their primary residence go by a number of different names, names which range from mildly boring to borderline offensive. The most common name is liveaboard. Some are sarcastically referred to as dreamers. The ones lining the Mississippi River here in Minneapolis are maybe-not-so-affectionately referred to as River Rats.
But I’ve come up with another name for them: financial geniuses.
I mentioned in my June Net Worth Update that I had been houseboat shopping. Either nobody reads my posts very carefully or I’m not as crazy as I think, because, surprisingly, the little bombshell garnered almost no attention at all. In the spirit of drawing even more attention to how I may have lost my mind, I’ve decided to devote an entire post to the topic.
What Exactly Do You Mean, Houseboat?
You’re right, houseboat is a pretty wide term. And that’s because there’s no exact definition to the word. Houseboats range from tiny fishing vessels with a mattress shoved inside the hull to giant yachts which dwarf most two story homes.
Some look like houses, others look exactly like boats. Some sport massive sea churning engines, others have little piddlers that top out at 2 miles per hour. Some don’t even have engines at all.
Perhaps the most common style, and the one which has most captured my interest, is that of the floating barge with a moderate sized engine.
These boat looks like, well… a house, and the footprint usually clocks in around 40 feet x 15 feet. For the eager mathematicians among us, that’s about 600 total square feet of indoor and outdoor space per floor. Most of these boats have two stories, if not an outdoor deck for the second floor.
In other words, the common houseboat falls somewhere near the typical apartment when placed on ever-scientific sliding scale of home sizes, which of course ranges from HGTV’s Tiny Houses to Shaq’s Mansion.
Trivia Intermission: The Mississippi River watershed is the fourth largest in the world, behind only the Nile, Amazon, and Congo. It covers 31 states and 2 Canadian Provinces. Total coverage is 1.2 million square miles and over 40% of the lower 48 states. At it’s the narrowest, the river is only 20-30 feet across. At it’s widest: over 2 miles. All this makes for one of the premier houseboating playgrounds in the world, and gives the owners an overwhelming number of travel/living/adventure options.
How Much Does it Cost to Live on a Boat?
The precise answer is, “not much.”
Boat prices vary. I have seen fixer uppers offered for free, and I have seen brand new custom built penthouse boats for over $400,000. Realistically, a search for my requirements shows a number of boats between $20-80,000. The $20,000 boats have a tendency to tilt towards the look of floating trailer homes, while the $80,000 boats can resemble impressive yachts just outside their glory days.
In Minnesota, sales tax on all houseboats is waived. If that wasn’t unbelievable enough, houseboat owners also pay no property tax.
A slip fee, including all annual boat club membership fees, maxes out at a laughably low $250 per month. My early interviews with boat owners put water use and all utilities around $50-$100 per month, based on boat size.
Water and electricity is provided by the docks via hookups, similar to an RV. Heating is solved either via an installed furnace, electric heaters, or propane. Some boat owners choose to go full “off the grid” style and outfit their boats with solar panels and composting toilets. These owners are rewarded with maximum freedom and an ability to sail (and live) anywhere they drive their boat.
Speaking of toilets: Pumping your, ahem… sewage… costs $20 per week. Pumping it yourself is also an option, with the tools and hoses provided by the dock, but needless to say, this may be one luxury I’m willing to pay for.
Boat owners have advised me to budget $1,000 per year for maintenance, depending on how often the boat goes boating. Boat insurance, which is highly recommended if you plan on captaining your boat, and extra-highly recommended if you’re a complete novice captain like myself, costs about $400 per year.
All in all, total costs of living on a houseboat: about $6,000 per year.
What sort of atmosphere can one expect for approximately $500 a month? Well, an apartment search around my entire metro area comes up with 3 (just three!) availabilities.
Meanwhile, on a houseboat:
Pretty amazing right?
Have I completely lost my mind? Could you live on a boat? Could I live on a boat?? Let me know!
________________________________
[Feature Photo Credit: Kim via flickr under CC]
Related Reading: (You know you want to…)
I had no idea they were so cheap! I’m actually staying in an Airbnb houseboat in September. Excited to give it a try! If I like it, that could be a life changing move 🙂
I’m jealous! Seeing a houseboat on Airbnb was actually what lead me to research, but I haven’t found one to stay in yet. Let me know how it goes!
hello there i live in sacramento and everyone thinks im crazy for doing just that im searching for a houseboat and all info i can get. the savings on rent alone is going to be extreme. ill live on it at one of our marina during the week and float down the river friday to sun. peacefull and free. i think your articles are the best.thanks.
This is a great way to think outside the box! But how does it work in the winter? Do you have to go south then? If your boat is stored, then does that mean you’ll need to find an apartment from November to March or something?
I’m not sure I have the guts to do myself, but when you get your boat, throw a party and let me come visit!
Winter is definitely the biggest icicle… oops I mean obstacle.
Winter liveaboards wrap their entire boat in a heavy duty shrink wrap which helps keep the heat in. With proper insulation, a boat can stay just as warm as a house, and at a fraction of the cost because of the reduced square footage.
Which leaves obstacle number two; the river does freeze. To combat this, a steel hull boat is recommended, and all liveaboards drop what’s called a bubbler – basically a machine which churns up the warm water from the river floor to keep ice from freezing and building up around your boat.
Day to day, the biggest obstacle is the mundane… things like shoveling the long docks and not being able to see out of your windows very well. The bigger problem is if something goes wrong, since a frozen pipe or a broken bubbler can have pretty disastrous consequences.
My parents were live-aboards for several years, winter included, in Canada. They were a little west of Toronto.
Maintaining the bubbler was pretty easy, and when it broke there was plenty of time to get it fixed. If you don’t have a finger dock to be able to access most of the way around your boat, they recommended installing access panels into the shrink-wrap so you can more easily check the exterior.
The biggest winter complaint was plumbing. You can’t keep hoses attached to the boat, so they would be dragged out every week to fill up the holding tanks and then had to be blown clear. The first year they showered at the marina office, and the plumbing there kept freezing. The second year, they installed additional filters on the boat, so they could pull shower water directly from the harbour and not run through the holding tank.
Mom loved the extra storage they got in winter. She used to keep a couple boxes on the bow, all protected by the shrink wrap.
One tip they received, install a ceiling fan on your shrink-wrap frame if you can. They had a 33ft power-boat with a fly bridge, so it worked for them. Helps move the air around, those shrink wrapped boats can be like greenhouses on a nice sunny day!
Slip-fee in Minnesota are so low! Slip fees in my area are about $300/month for a boat under 25ft and can easily go up to $500-600 a month.
Great info Kat!
I’ve heard many of those complaints about plumbing. A lot of the boat owners here install pex plumbing, which they say eliminates most of the freezing problems. Some also run a special type of electrical heating tape which thaws the hoses and allows them to pull water from the docks/harbor. Nonetheless, the fact remains – it gets cold up North! And a boat is definitely more exposed than a standard house.
Slip fees definitely are nice here. I knew they were low relative to some of the milder climates out West and near Florida, but I’m surprised they’re so much lower than Canada too!
Thanks again for the info! Those are great tips!
Question for you: with your parents having been live-aboards, would ever consider the boat lifestyle yourself? I’d love to hear your thoughts!
Yep, we’re definitely considering it. DH got me into sailing, so we want to balance what’s a good boat to go sailing on for the day/weekend and live on. That’s few years away yet! Right now we’re happy in our regular house that’s a 5min walk to the marina where we keep a 22ft sailboat. I wouldn’t’ want to live on it (it’s tight even for overnight!) but it’s a great boat to take out for a day sail.
Very cool! That’s a pretty big endorsement for houseboat living, from someone who has more experience with it than probably all of us! Let me know how it goes.
Hi!
Did you ever go forward with the houseboat? I found your blog entry via a websearch. But I can’t really find any more about it. I’m really really curious if you did it!
Thanks
ps do you still maintain this?
The blog is still going strong! Check out the homepage, I post about once a week.
Never could find a good fit with the houseboat though…
I became curious about the idea while vacationing in Vancouver last year. I definitely like the idea and I think I could live that lifestyle…even on an actual boat! Weird coming from a prairie girl…
There is amazing power in reducing housing costs while finding a place that we feel comfortable living in. When it comes to mortgage payments, the amount the average family shackles itself with is insane! It’s like signing up for a lifetime prison sentence…like a 20-30 yr mortgage that takes 30-40% of your yearly income is the new norm. As a society, we’ve definitely lost our marbles in the housing department.
I say don’t go with what’s normal. Go with “whatever floats your boat”.
haha, love that last line! Like most areas of finance, whatever floats your boat is usually the way to go!
Couldn’t agree more about your mortgage comment. I’ve written about this a few times on the site but still have a lot more to say on it. The craziest part to me, is that until the early 1900s, mortgages of any kind were something people kept a secret out of shame. Somewhere along the way, we went the other direction and decided the bigger the better! I find it fascinating.
I’ve definitely dreamed of this, but I don’t have any boat or swimming skills. It is so damn tempting though. Forced minimalism. Cheaper than the high COL nasty apartments.
My brother owns a “floating house” up in Portland Oregon. His prices are way higher than the ones you are listing here. My stationary home is a whole lot cheaper. However, he loves it and wouldn’t change a thing. So I agree with the others…go with “whatever floats YOUR boat.”
From what I’ve seen, the western real estate boom extends even to the houseboat market. Some of the slip fees I’ve seen out there are crazy high. But like you said, many love it anyway!
Great breakdown, and I must admit I am thoroughly impressed with how affordable houseboat living could be. I knew the lifestyle was an option out west, but I wasn’t aware of the communities in Minneapolis.
I think it was be an awesome way to spend a summer, and a miserable way to spend a winter. I can’t imagine living in the thing while it’s wrapped in plastic.
May to September, I’d be all about it.
Cheers!
-PoF
I met a guy here who lives on his houseboat all summer, then every winter he stores it and goes on a 6 month cruise around warmer parts of the world. Not nearly as cheap, but definitely a cool way to live.
My guess is that it sounds cool but the practicalities would kill me.
Space would be limited, winters could be brutal, and what about storms (tornadoes, etc.) or even rough waves?
Also, do houseboats move? If so, I imagine they’re bulky, right?
Maybe if I was alone and single again, but not with a family — I couldn’t.
The marinas are usually really sheltered, so waves aren’t as much of a concern. I felt a tiny bit of rocking during one especially windy day.
You’re right though, there are definitely some unique challenges, and it’s certainly not for everyone.
Good for you little boy
Great article. I hadn’t realized how affordable house boats actually are. Boats in general are expensive to run and the stereotypical images of sailing are “expensive”. But like everything, there is always a work around.
Boats can definitely be expensive. But so are houses. Like you said, it’s all about the individual situation and finding what works best for you.
Liveaboards are quite common where we live (Vancouver Island). I’m intrigued by the lifestyle and at another point in my life it would have appealed to me. (Ditto for tiny houses.) Now, for better or worse (probably worse), I have too much stuff and am too spoiled by space. Plus my spouse would have none of it. 🙂
Haha, true, it’s definitely not for everyone. And I do think it takes being in a very specific stage in life.
I guess it makes sense that this lifestyle would be more expensive in locations where it’s more accessible (year round). Great article, I love the outside the box thinking and all of the research Money Wizard has done!
Interesting proposition Mr. MW. While the math appears to be attractive, I can’t help but think it underestimates true costs. Maintenance, for example, could be much higher especially if you are plunking down less than $80K. Rust-bucket pricing?
I got the maintenance costs from current boat owners. Although given how much most home owners underestimate the cost of home ownership, it wouldn’t surprise me if liveaboards were doing the same.
Wow, that’s cheap! I would love to live in a houseboat, but I think it’s more expensive here in Portland. I guess if we drive out a bit, it would be cheaper. There are some really nice houseboats on the river nearby.
Funny, I’m a youngish dude trying to do the exact same thing and have been shopping for a houseboat and talking to other liveaboards in the St Paul area. I came across your site while trying to find out how much it costs to run a bubbler. Haven’t found the right boat yet though. Good luck.
No way! Are we twins?
Good luck to you as well in your search.
They should rename your area the Twin Cities bc of you guys!
Wowza! I’ve always entertained the idea of alternative housing suggestions and this sounds pretty cool! I do get seasick, so I don’t know if I could ever do it for real. But it’s so cool to know that houseboats can be much cheaper than having a traditional mortgage.
I’m not sure how one would dock or move the boat when relocating to a landlocked city.
Assuming you’re not relocating to one of the many states accessible by the Mississippi river or moving from coastal city to coastal city, even huge boats like a houseboat can be strapped to the back of a semi and transported similar to a mobile home. It’s not cheap, but it is an option which many houseboaters use.
I love the article! I can’t remember a time when I didn’t want to live like this! Thought I was nuts until I read your article and realized I was intuitively sound in my finacial reasoning. Followimg your blog now!
I just visited Seattle and saw some of the houseboat communities there. Just an amazing lifestyle, although definitely one that is more expensive than here in Minnesota. Here’s to you realizing your dream at a reasonable price!
Hey thanks for the great post. I guess financial geeks and savers think alike because I once mentioned to my new girlfriend now Mrs. MoneyWatch101 that I want to live in a house boat 1 day. She laughed and said that is not a fun place to live. I guess I have 15 more years to convince her. Anyone can be frugal with any net worth, you just have to get creative.
haha, awesome! I’ve always wanted to live in an RV or something equally wacky, so the idea of this lifestyle really floated my boat. Ba-dum-tish!
I have also been researching the year around liveaboard options in the twin cities area and I can’t find a single marina willing to take on new full time residents. Where are the people you talked to living?
And, I think some of your figures are a little bit low ($400 a year for insurance on an $80k boat?). My research suggests the $250/month slip rental is far below what one would expect to pay. Most slips large enough to accommodate a houseboat seem to be $400-500 monthly at the marinas I have found.
I’ve found a few which are open to year round liveaboards. Send me an email for more info.
Insurance could very well be low. I was quoted that number by liveaboards, but since most people underestimate how much they spend on just about everything, I wouldn’t be surprised if it was actually higher.
We have lived on houseboats for about twenty years! One on Lake Ontario in Toronto (May to October) and another in Central Florida (November to. April) Cost is about $6000 per year per boat plus at least another $1000 for each boat for maintenance each year! We love the lifestyle and will probably do it for as long as we can! I will be 70 years in April so we can probably go for some time yet
Your retirement plans seem a little optimistic! We retired ten years ago with about $3700 per month and have one million dollars in assets and we feel that much less woukd be a problem! We still do own a paid for house in Toronto which is a good hedge against inflation! You will figure this out as you go along!
But the houseboat idea is a great one! Feel free to email if you have questions! Good Luck! I enjoy reading what the millenials are thinking!
I live in West Texas and dream about a more watery life. For those of lesser means, is houseboating a monetary possibility? I love the dual location idea as an answer to the climate difficulties!
I am wondering about more information living on board when it gets cold!
I love this article! Mainly because it identifies exactly how I feel about this topic. My husband and I have been talking about buying a houseboat to live on (my idea), for many of the reasons you’ve mentioned. Lately i find myself saying to him, “Honey, thank you for considering my crazy idea.” It sounds crazy to a lot of people but I think it’s frigging brilliant and way more fun than living…. just about anywhere!
My husband and I bought a 25 ft sailboat to live on as I travel nurse in coastal areas. $3000. With about $2000 in fixing the broken stuff. It’s almost in the water!
I discovered your website by accident as I’m doing some researching about my family and I living on a houseboat. Ive already enjoyed reading several of your articles. I grew up with an incredibly thrifty father, and although I spend way more on luxurious amusements than he ever did, I’ve managed to avoid huge pitfalls like credit card debt. I plan on devising a plan that will keep my family living unenslaved to consumerism. Thanks for sharing your experiences.
I am interested in anything concerning houseboat or motor home living.
We’ve lived there n our boat for a little over a year now. So far, we’ve traveled from Oklahoma on the Arkansas River to the Mississippi, the Achifalya (spelled wrong, I’m sure), across the Gulf, through Florida on the ICW, up the East coast to Portsmouth, VA, where we are doing some updating while we’re near one of our sons, so he can help. We were able to retire early because this life is so inexpensive (I was 53 and my husband was 57). We love it even though the cold snap we just lived through was horrendous.
Genius here! The benefits of living on a houseboat are not just financial. It’s a completely different way of life getting back to nature and waking up with the water at your feet is a fantastic way of life.
You won’t hear a lot of us piping up and telling you where we live though because most municipalities do not like financial geniuses (lol aka live aboards). So a lot of us sail under the radar and hope that articles like this don’t bring out too many people that all of a sudden want to ask a lot of questions and call attention to us living here. Especially if they aren’t serious about doing it.
With that said, I highly recommend this life. I also want to say that it is definitely not for the faint of heart. For example wind, mold and frozen pipes can really be a challenge. We are not expected have water for the duration of the winter after the East Coast storm and we don’t have a marina that provides showers or any of those “extras”.
Someone hug me 🙁 no one wants to hug you when you can’t shower!
Kelly
NYC
My view of a houseboat in Seattle was a bit more expensive. I wrote about it today, but it comes out to $16k a year after the cost of the boat (approximately $200K for an okay one). Still, way more affordable than renting an apartment or buying a home there.
Ive owned a houseboat and plan to retire on one. One very expensive cistissing from this is the fuel. If you ever plan to take your houseboat away from the dock remember, gas from the marina costs about twice as much as from a regular gas station. And most hold a lot of gas and take a lot of fuel to boat around.
I just bougth a 40 years old motor saior 39 feet long (13 meter x 3.5 meter) for $15 K and got a slip for $ 150 pr. Month inclusive water and shower and free electric during 6 month summer period April to September. Just moved into my Motiva 39 .You can follow my life on my blog (Facebook) name of blog
Homeless but not boatless
I live about 1/2 a mile or less near a boat marina. Living on a houseboat is something I’m seriously thinking about doing. I live in Savannah Georgia which has plenty of swamps and creeks etc. I’m researching information about how to do it.I’m so ready to live an alternative lifestyle.
Such great information. Much thanks to you for sharing background and thoughts!
I’m moving onto my pontoon houseboat in California’s Sacramento Delta. I tried out living aboard during recession and loved it. Took six years but I found an elderly houseboat in a marina on the San Joaquin River – Sacto Delta – and I love the boat and the people from whom I bought it. Just started a blog about the experience so follow this swabbie as she morphs into a… captain? (blog is called Delta Hand: A Swabbie’s Tales on Houseboat Living – https://deltahand.blogspot.com/ Welcome aboard?)
Everything depends on which boat you’re going to live and in which country. The most popular houseboats can be found in Amsterdam. There are a lot of them. There are floating hostels, b&b houseboats, as well as luxurious floating apartments with several bedrooms and a bubble bath. You can also choose between a floating house or book a yacht for several nights.
I stayed with my family last year. It is very comfortable and atmospheric. Living on water is not the same as in a regular hotel.
If you really think about staying at a houseboat, then you should definitely try at least once in your life. You can choose a suitable houseboat on Booking.com with the filter “boats” or on specialized sites, for example, Botels.me