California Housing Crisis: How RVs Became Homes for Thousands

The soaring cost of living in the San Francisco Bay Area and across California is driving a growing number of residents into a precarious housing situation: recreational vehicles. As traditional housing becomes increasingly unaffordable, even those with full-time jobs are turning to RVs as a last resort, creating a shadow rental market and prompting local governments to seek solutions.

Across California, the number of people living in vehicles has surged in recent years. County data from Santa Clara County – home to tech giants Apple and Google – shows that the portion of homeless individuals sleeping in vehicles more than doubled between 2019 and 2025, rising from 18% to 37%. This trend reflects a broader statewide crisis; California accounts for nearly a quarter of the nation’s homeless population despite representing only 12% of the total US population, according to federal housing data.

Experts estimate California faces a massive housing shortage, potentially needing as many as 3.5 million more homes to meet demand, according to a McKinsey report. This scarcity has fueled a new, exploitative market where individuals rent out aging RVs, often without the protections afforded to traditional tenants. These individuals have become known as “vanlords.”

The Rise of the ‘Vanlords’

The arrangements facilitated by “vanlords” typically involve renters paying hundreds of dollars per month to live in RVs parked on public streets, with no formal leases or tenant protections. One San Francisco resident told CNBC he splits the cost of an RV rental with a friend, paying a total of $500 per month – a fraction of the cost of a traditional apartment in the city. However, local lawmakers are increasingly concerned about the exploitative nature of these arrangements.

David Cohen, a San Jose city councilmember, described the practice as individuals “using our public streets for revenue, to make money without any kind of permitting or process.” He sponsored legislation aimed at banning the practice to protect both the community and those living in the vehicles. Despite these efforts, the underground market persists, and cracking down on vanlords has proven difficult.

Simultaneously, cities across the Bay Area have increased parking enforcement, issuing citations and towing RVs, but this approach hasn’t stemmed the growth of vehicle homelessness. This has prompted officials to explore alternative solutions.

Safe Parking Sites: A Different Approach

The city of San Jose has taken a different tack, establishing a “safe parking site” with space for 86 RVs. Opened in 2025, the Berryessa Safe Parking Site, operated by the nonprofit WeHope, offers residents a secure location to park, along with access to showers, laundry facilities, and case management services. The site consistently maintains a full waiting list.

Salena Alvarez, a full-time in-home care worker and resident of the safe parking site, previously lived in a car before moving into an RV. “The RV was a lot better,” she told CNBC. “The car is smaller… you can’t cook, you can’t wash your dishes, you can’t take a shower, you can’t go to the bathroom. You’ve got to go somewhere.” A key requirement for residents of the safe parking site is engagement with case workers to help them secure permanent housing.

The city expects the site to cost $24 million over five years, including the cost of services. Since opening, the site’s manager, Victoria Garibaldi, says they have helped over 40 residents find permanent housing.

However, the need far outweighs the available capacity. San Jose has only 128 spaces across two safe parking sites, while estimates suggest nearly 1,000 people live in vehicles within the city limits.

Rethinking RV Parks and the Broader Housing Landscape

Other cities in the Bay Area have attempted similar safe parking initiatives, but have faced challenges. San Francisco established a site in 2022, but it never reached its intended capacity of 150 vehicles, hampered by infrastructure issues and neighbor complaints. The city ultimately shut it down, citing cost and operational difficulties.

Candlestick RV Park in San Francisco, originally designed for tourists, has increasingly become a long-term housing option for workers who cannot afford traditional rentals. Spots at the park now rent for $2,500 per month, a recent increase from $2,000. Park manager Tsin Fung notes that he’s observed some tenants subletting their RVs, contributing to the “vanlord” phenomenon.

Adrian Covert, senior vice president of public policy for the Bay Area Council, argues that a broader rethinking of RV parks is necessary. “We’re coming off of 30- or 40-year trends of hostility from local governments… toward mobile home parks and RV parks,” he said. “They’ve been seen as a blight. But what we’re seeing now is that doesn’t just make low-income people go away.”

Covert suggests that well-managed RV parks should be considered part of the region’s housing strategy, particularly in the near term, as the construction of traditional housing struggles to keep pace with demand. Until more permanent housing becomes available, he believes cities may need to accept RVs as a component of the housing landscape.