Enjoy living in small spaces? I live on a 28ft sailboat

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So, for over 2 years now I've been living on a 28ft sailboat.
I grew up in the desert, lived on land until I purchased my boat, so not something I have had experience with before.
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One reason I moved onto a boat was the rent for a boat slip was FAR below what any apartment would cost me.
Another reason was the ever-so-more feeling of isolation I would have.
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• -I have always appreciated living in small spaces vs large spaces. There's a certain 'comfort' I feel in such a tight living quarter compared to a house with many rooms.
• -The motion of the boat while tied to the dock is gentle (well... unless there are high winds or some boat speeds by creating large wake).
• -There are no streets near my boat, no sidewalks, no people walking by making noise that wakes me up at night.
• -I'm forced to keep my possessions down to a manageable number so I can move about inside the boat.
• -I wake up most mornings, open the hatch, and see beautiful sunrises over the water (I do not live where it snows, or the water freezes, but I also do not live where it is sunny most of the year... we have our rainy season to be sure! lol).
• -I have very few neighbors... aka liveaboards. I have 2 other people who liveaboard their boats on my dock. The other boats are commercial fishing boats and personal recreation boats like sailboats.

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It's not a perfect world. There are issues from time-to-time. If I don't want to use the bathroom on my boat (which I often do not, since I have to empty it later), I walk up the dock to the bathroom building nearby.
Overall though... I've been really happy living here.
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Other small places I've lived have been...
- in a cave in West Texas... I wound up with a job close by with employee lockers, bathroom, and showers.
- in a camping tent... again, out in the desert of West Texas.
- in my pickup truck camper shell... on the streets of Long Beach, CA.
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Sounds quite comfortable with the exception of the toilet situation. I've experienced plumbing issues in my house that went on for a few months but are resolved now. I know the inconvenience of having to go someplace else. Having it all working now is heavenly. It doesn't sound like you have to go very far and the California coast has mostly tolerable weather for a potty hike.
Does the water keep bugs away? I don't like bugs in my house!

Bugs... not a problem for the most part. Maybe a mosquito or two sometimes, but no flies to speak of or anything else.
The seagulls, herons, and other birds do like to hangout on the dock and pull fish and crab up from the water... and in so doing poop on our dock!
But instead of having a lawn to water and mow... I just hose off the bird splats... really easy!
I don't mind the walk up to the bathroom... unless my timing is off! But I have a head on the boat to use, or a bucket/bag setup like camping for some folks.
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I was given a slightly larger boat... 30ft... by an older couple who just didn't want to deal with it anymore.
Same dock, btw!
So now I'm working on it in order to move aboard it and out of the smaller one.
The one I'm in now is really designed inside, as a weekend fun sailing boat.
The one I'm working on was designed inside for people who are cruising out at sea... so much better to move about in.
Also the V-berth is slightly larger, and I have headroom enough I don't have to tip my head sideways to avoid bumping into the ceiling like my current liveaboard.
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I have some possessions in storage and elsewhere, but they're all easy to get to.

I considered this option when I was young. I lived in California and home prices were going up radically. Living aboard a boat has a certain romantic flavor. And the boat docks were located near some phenomenal seafood restaurants. But my wife was deathly afraid of water because she almost drowned once by being sucked into a whirlpool. And then there was the item of expense. Boat maintenance can be very expensive.

You got new boat for free? That's pretty awesome! Hope you can sell your smaller one once you get the bigger one fixed up to pay for your repairs. Or, maybe you can rent out the smaller one as an AirBnB??? And make some nice side income. Just be sure to disable the engine or lcok the the mast or whatever it takes so the renters can't sail away during the night with your boat!

I have lived in a 21 foot by 8 foot trailer for 2 and 1/2 years; never been happier.
The trailer park where I live has its own laundromat and showers and toilets, 24 hours, combination locks on the doors.
The rent is around $1000 monthly, propane is paid when the delivery is made.
Very nice lifestyle.

I lived in my small camper van with my dog for 2½ years when we went travelling, and a further 2 years outside the house I bought when I stopped travelling. The living space is about 12ft x 6ft, including kitchen, toilet and shower. I was quite involved in promoting the tiny house movement in the UK, and currently live in what is effectively a tiny home in part of my much bigger house. The rest of it is currently hobby space and building site!

Want a Tiny House.

All interesting concepts.

We have one 36ft sailboat that operates as an AirBnB, at our Marina.
Mine wouldn't be so roomy and nice, I imagine. But still a good idea!
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The boat I got for free is an 80's sailboat. I have to rewire the whole thing, finish plugging up little rain leaks, recover the interior cabin surfaces after ripping out the slightly moldy headliner, and a few other things.
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I basically did a lot of this with the Hunter 28.5 I currently live aboard. Loved delving into the whole technical stuff about boat builds!
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I appreciate the extra interior room and open spacing of the Islander Bahama 30 I got. Not too worried about getting it ready to sail soon... just watertight (from rain) and comfy for liveaboard.

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For the two slips and electricity I use for both boats, I pay around $380.00 USD a month.
Currently we have no fee for liveaboard... but that's fixing to change. We've had meetings with the Harbor District about it.
Still... it's going to be cheaper than living on land in a house or apartment, by myself.
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My brother had trouble with water for the same reason your wife does. He took a long time to get back in open water and start swimming again.
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Yes.... definite maintenance concerns... although land-based housing has similar maintenance concerns, you can put them off and won't sink into the water! hahaha
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My biggest problem with maintenance currently, is keeping the outside of the boat(s) clean. The green growth keeps growing!
It's a matter of taking advantage of the sunny, warmer days, and spraying down then scrubbing and rinsing off the deck and hull(above water line).
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I actually work as a diver, so I could clean my hull below the waterline... but I'm pretty bad about not doing my own boats, just doing client's boats.

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There are so many similarities between trailer living and boat living!
My marina has a laundromat, showers, and toilet facilities also.
Laundry is way cheaper to wash on the island than on shore at other laundromats.
Showers are 8 minutes for $0.50.
Toilets... free! Oh! And they are locked except for tenant use.
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I pay $380.00 for 2 30ft slips (one for each boat), and little for electricity, each month.
I do have to pay county property taxes (around $130.00/yr), and state vehicle registration (around $30.00/yr).
We're also required to have an inspection of our boat for liveaboard status. I'm fine with that... there are many derelict boats that are prone to sinking and/or leaking bad fluids into the surrounding waters.
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All-in-all, I'm still enjoying living there after 2 years.

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Previous to moving onto the boat, I lived in a small 2-bedroom mother-in-law house on a hillside, many yards away from the main house.
I had a 24x40ft metal shop building at my disposal also!
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The good side... even though the house, at times, felt too big... it was still a fairly small house compared to others I've live in.
The shop building was GREAT! I could do so many different projects in it! As many as my ADHD brain could come up with and my wallet afford!
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The downside... there was a natural amphitheatre effect living on the side of the hill and I caught way too much of the town noise below me. The shop building became a filled-to-the-gills depository of all my junk!
I had to make pathways so I could get around to all my different stuff... but at least I had a system for my chaos!