During the last decade, the recreational vehicle industry boomed, with dealerships selling more units than previous years. And the increased demand continues. Subsequently, RV park and campground reservations are solidly booked throughout most of the country. The result is everyone in the industry is reaping the reward of a high return on their investment (ROI).
Recent studies by the Kampgrounds of America Inc. (KOA), IPOS, and the Recreational Vehicle Industry Association (RVIA) concluded ownership demographics have shifted to a younger group, promising park membership longevity. Currently, 11.2 million households own an RV, reflecting an increase of 2.3 million new owners in the past decade.
Historically, the majority of owners were 55 and older. However, this demographic has shifted, pushing this group into minority status; slightly. Those 54 and younger own 5.7 million recreational vehicles.
“In fact, those in the 18-34 years old age range now make up 22% of the market. These Millennial and Gen Z RVers aren’t going anywhere. The research shows 84% are planning to purchase another RV at some point, with 78% preferring to buy a brand-new RV,” writes Mike Gast for RV Travel.
The demographic shift means several things for park and campground owners. First, younger adults enjoy a more rigorous lifestyle than many older adults who prefer a quieter vacationing experience. Next, Millennials and Gen Zers are more likely to use their recreational vehicles for weekend or day trips than their older counterparts. Third, the significant growth in the industry means more vacationers are filling existing parks more quickly, leaving many frustrated and having to boondock rather than enjoy the luxuries of an RV park.
As a result of the recent studies, industry leaders and investment counselors see owning a park or campground as a wise choice. Frank Rolfe, who is an avid RV and mobile home park investor, points out that “RV parks are a very high-yielding investment, with returns from 10% to 20%+ on your money. RV parks are among the highest-yielding of all real estate asset classes. So if your goal is to maximize the return on your money, RV parks are not a bad starting spot.”
Rolfe concludes that owning an RV Park is a worthy investment. Ownership in a park or campground can provide benefits — financially and quality of life — which exceeds the outreach of any stock, bond, CD, or any other form of real estate.
Written by Cathy Milne-Ware
RV Park University: HARNESS THE POWER OF BIDEN TO MAKE MONEY WITH RV PARKS; by Frank Rolfe
RV Park University: IS BUYING A RV PARK WORTH THE INVESTMENT? By Frank Rolfe
RV Travel: Study shows millions more Americans will soon own RVs; by Mike Gast
Images Courtesy of Darlene Hildebrandt’s Flickr Page – Creative Commons License