Is It Cheaper To Live In All-Inclusive or Rent? Seattle Man Does The Math

As many tighten their belts during the cost-of-living squeeze, one man has done the math on whether he'd be better off swapping his Seattle apartment, social life and current expenses for permanent housing in the form of an all-inclusive resort.

Ben Keenan (@ivebentraveling), a content creator based in the Washington city, shared his thoughts on the matter online back in February, sparking debate and plenty of laughter.

"Have we ever considered that it's actually cheaper, at this point, to live in an all-inclusive resort than it is to live in the apartments that we currently occupy," the influencer asked in a TikTok video.

He proceeded to run some calculations—albeit with a generous injection of his trademark humor —on how his expenses would fare if he packed up and left for a resort tomorrow.

The creator revealed in the post that his personal monthly expenses come to around $4,000, and so he decided to scour the internet for the "best" all-inclusive resorts in Mexico that can offer accommodation and all the leisure expenses that he currently funds in the U.S., like his gym membership, for the same price.

Keenan learned that he could stay in a high-quality all-inclusive resort in the Central American nation for only $450 more than what he's currently spending to survive in Seattle per month.

Read more: How to Budget

And, when he checked how he'd fare in the Dominican Republic, he saw that the price dropped to well below his current monthly expense. The influencer added that couples would be able to stay in a more luxurious resort for the same price or less, due to sharing the total expense.

Keenan's viral clip has been viewed more than 7 million times.

"Some of my friends and I would sit around during the winter and ask ourselves whether we could live somewhere sunny for cheaper than living in the rain and the cold. That quickly modified to 'could we live somewhere sunny, BY THE BEACH', which then became 'what about just living at an all-inclusive resort'," Keenan told Newsweek.

"I poked around and realized that it actually isn't that infeasible to compare what a month at an all-inclusive might look like in direct comparison to my monthly expenses just living in a big city."

"I added up my monthly expenses and what I could get at an all-inclusive and found that they're actually pretty close in cost. It was a surprise to us all, but I'm not surprised that this lighthearted idea of living at an all-inclusive resonated with so many people. Life is expensive and it so often feels like a lot of us are being taken advantage of bills-wise," he added.

The viral post has invited plenty of opinion and debate, and it has been commented on more than 8,000 times to date.

"I met a guy on my cruise last year who LIVED on the ship. Paid for WiFi and works remotely. Blew my mind," one user shared.

Another wrote: "EX-hotel employee here! If you did this, you can contact the sales department and negotiate, you might be able to get a better deal."

Have Living Costs In The US Risen?

While he may have been joking, the content creator may not be wrong. The U.S. is grappling with a persistent cost-of-living crisis, and many American families have found themselves caught in an economic whirlwind that threatens the very essence of the American Dream.

The squeeze is marked by stagnant wage growth, even as inflation slowed following its 2022 peak. It has pushed millions to the brink, compelling them to rethink their financial strategies and question the sustainability of their current living standards. Around 60 percent of Americans are living paycheck-to-paycheck, and the relentless rise in rent costs has become an added challenge.

"Average Living Costs Have Grown"

Sadly, the rental market has not been spared by the economic fluctuations. According to a report by NerdWallet, as of February 2024, asking rents have increased by 3.5 percent compared to the same time last year.

This trend suggests a slight slowdown from the drastic spikes witnessed in 2021, but still places a considerable strain on renters and those planning to rent.

Factors contributing to this growth include a surge in construction for rental housing and a slowdown in economic growth, which, paradoxically, keeps vacancy rates low and rents high.

Jason Anbara is a mortgage broker and the president and founder of NorthLend Financial, a mortgage administration company located in Ottawa, Ontario. Anbara's firm is fully licensed to receive mortgage payments from borrowers and send them to lenders. Although he spends much of his time in Canada, the broker is equipped to comment on the living costs affecting both Americans and Canadians at present.

Read more: What Is a Mortgage? Types & How They Work

"The average living costs have grown exceptionally, with one of the main cost increases being rent and home prices," Anbara told Newsweek.

"For both Americans and Canadians, many urban areas are in an affordability crisis, where the cost of living has risen well past what is affordable on average incomes. Affordable housing is usually benchmarked at costing less than 30 percent of an individual's monthly income. Right now, in big cities, the average income to afford rent in a two-bedroom is around $70,000 more than the average household income."

"One of the biggest reasons is broader economic shifts, a slowdown in housing starts, and an overall increase in inflation. Housing start slowdowns were already an issue prior to the pandemic, although the pandemic did worsen issues around supply chain disruptions and worker shortages," he added.

Without the necessary supply of housing to meet demand, the prices of vacant rentals are driven up. In addition to this, inflation causes the value of the dollar to depreciate, leading to further issues around the affordability of all living costs, and not just rental prices.

In Minnesota, Marisa Simonetti runs a real estate business that buys and flips outmoded properties.

She told Newsweek: "Here in Minneapolis, gas prices increased roughly 40 percent overnight. All costs have gotten higher, and some would say that it is due to the political climate. Since the Biden administration took office, overall costs are up 18 percent, food is up 21.2 percent, rent is up 20 percent, electricity is up 28.4 percent."

"We are seeing increased costs but people are not seeing increased salaries to match it. There is an overall level of discontent and stress that does not bode well," she added.

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