Feb 5, 2024
Rising rents have become a substantial burden for many Americans, prompting some to resort to innovative strategies to cut down on their housing expenses.
Just look at Arslan Shono. Shono's home is a 2014 Chevy Suburban, which he has ingeniously converted into a compact dwelling complete with a bed, a portable toilet, a kitchen and even solar panels on the roof.
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Shono currently parks his Suburban the parking lot of the hospital where he works as a registered nurse.
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“My journey of alternative living began after I was fed up with the high cost of rent in the United States,” he writes in the description of one of his YouTube videos, where he brings viewers along with him for a regular day in his life.
From preparing coffee in his micro kitchen at 6 a.m. to resetting the van to drive to a gym to shower after his nursing shift 14 hours later, more than 1.5 million viewers watched as Shono comfortably navigated his compact — but well organized — space. Clearly, it resonated with his audience — is he on to something?
Saving tons of money?
Shono's creative living arrangement sparked a lively debate in the video's comment section. Many viewers praised his resourceful approach to a challenging situation, noting it was a financially savvy decision, especially given his profession.
One of the top comments reads, “As an RN, you must be saving tons of money living in your vehicle while you are young.”
The commenter raises a good point: nursing can be a well-paid profession. The average annual wage for registered nurses in the U.S. is $89,010, according to data from the Bureau of Labor Statistics.
Although Shono’s reasoning for living out of his van isn’t necessarily that he can’t afford it, posting on YouTube that he simply “hates paying for rent,” he definitely has been able to save significant amounts of money by avoiding rent.
In a 2022 TikTok, he revealed his former apartment cost him $1,800 a month with utilities by living in his van for nine months (and crashing with friends and family the other three), he was able to save a whopping $16,200 in a year.
Read more: Don't miss out: Jeff Bezos reveals the secret to prime real estate profits — say goodbye to landlord headaches
America’s rental crisis
While Shono seems to enjoy his unique living situation, many Americans don’t share his enthusiasm for van living.
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For those who need (or just want) to live in a traditional home, that’s becoming increasingly difficult to afford.
Anyone paying more than 30% of their income on rent and utilities is considered cost-burdened. As of 2022, more than 50% of American renters were considered cost-burdened, according to a report from Harvard’s Joint Center for Housing Studies. That’s a 3.2 percentage point increase from 2019.
And it appears many Americans simply can’t keep up with rising rent. The Harvard study reported that homelessness in America reached an all-time high of 653,100 people in January 2023. Moreover, the number of unsheltered homeless people surged by 48% from 2015 to 2023, reaching 256,610 — also a new record.
Older Americans are especially vulnerable.
The study offers a glimmer of hope, suggesting that rental markets in America are “finally cooling as a decades-high volume of new supply has come online.” Nevertheless, recent figures from the consumer price index indicate that despite a slowdown in the headline inflation rate, housing costs remain elevated. In December 2023, the rent index had risen by 6.5% compared to the previous year.
It remains to be seen what 2024 holds for Americans who rent, but some see reason for optimism ahead.
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
