Australians at the top of their field earning six figures are turning to van and caravan life amid the housing crisis – including Sydney lawyer Phoebe MacDougall, who says it’s the best decision she’s made.
Four consecutive rate hikes, which has taken cash rates to 4.35 per cent, new tax rules and a failure to build enough homes are pushing Australians out of traditional housing.
Even those who can technically afford it are finding it stressful and ‘not worth it’, causing them to look for alternatives.
Money.com revealed in its most recent survey that almost one in ten Australians have lived in a caravan in the past year.
Previously a sought after lifestyle for retirees, Money.com research found younger generations appealed to this lifestyle – many could afford traditional housing.
One in five Gen Z and Millennials were open to living in a caravan, temporarily or permanently.
More than half of Millennials were driven by the lifestyle and freedom to travel.
Relationship changes was the second most common reason, with almost one quarter of those that had lived in a caravan was due to a relationship break down.
Gen Z and Millennials are embracing van life. Photo: Supplied
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The response showed that households earning $100,000 to $149,000 annually, were the highest portion willing to permanently (5 per cent) or temporarily (7 per cent) live in a caravan.
More than one in ten (13 per cent) said they chose this option out of necessity due to not being able to afford to rent or a mortgage. It comes as home prices spiked 8.5 per cent from last April.
Money.com.au’s Nick Burgess said living life in a home with wheels was no longer just an option for retirees wanting to travel or even those who couldn’t afford a mortgage or rent.
“Caravans are becoming less of a ‘fringe’ lifestyle traditionally associated with grey nomads and more of a serious housing option for Australians who feel squeezed by rising property prices and living costs. It beats sleeping in your car,” he said.
Money.com’s Nick Burgess. Photo: Supplied
“For some, it’s a short-term fix while the cost of living is so high and for others it could become permanent. And with no real relief on the cost-of-living front, we’re likely to see this trend grow.”
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Zachary Biddulph, a van traveller who spent fitted out his Mercedes van so he could travel Australia in style. Photo Jeremy Piper
For many it’s a short-term fix to reduce living costs while they look for their next brick-and-mortar home, or while they get back on their feet after a major life event like a separation, redundancy or retirement, he added.
“For others, caravans are a lifestyle choice – they value the freedom, flexibility and ability to travel without being tied to a traditional home,” he said.
Ms MacDougall is part of a growing group of professionals who are choosing a movable-home address on four-wheels.
The 37-year-old criminal lawyer told the ABC the stress of a mortgage and the price of renting pushed her towards van life.
Phoebe MacDougall, a Sydney lawyer who has switched life to live in a caravan. Photo: Instagram
She had previously owned an apartment in Coogee and was forced to rent out the second bedroom to afford the repayments, according to the report.
In 2021, she sold her apartment in Coogee in exchange for a $600 per week rental in Manly.
Despite having the ability to pay for a rental, Ms MacDougall said she enjoyed being able to live by herself and avoid paying a hefty mortgage.
“The stress that came with the mortgage for me was not worth it,” she said.
She said there was a lot of pressure to own a house while working as a lawyer in the city.
Partner’s in Sydney law firms typically earn around $210,000, according to Payscale.
“Once I was in Sydney and in that corporate lifestyle, it felt like that was the goal that you had to get to,” she said.
“It was more rewarding to be living on my own, even if it was a small tin can on wheels.”
She also liked the lifestyle it offered, which half of Money.com’s respondents agreed with.
Mr Burgess said it was important to note there were still costs that came with living in a van.
“Site fees, utilities, maintenance, registration and insurance … but for many they can still work out far cheaper than traditional rent or a mortgage.”
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