The COVID-19 pandemic caused a lot of businesses and facilities to shut down or close permanently. However, RV dealers and manufacturers are surprised sales of Recreational Vehicles have been booming. With continued sales, the need for new RV parks and campgrounds to be opened increases. At this time, most parks are solidly booked through the end of 2022.
RV Park owners report a high return on their investment (ROI). Frank Rolfe, who has been an active RV park investor for over a decade, says this is a prime time for people looking to bump up their investment portfolio — with the number of RV units sold, this type of real estate is a sound choice.
As RV Sales Increase So Does the Need for More RV Parks
According to Go RVing, shipments for the year 2020 finished off at 430,412 units. These sales surpassed 2019 by six percent, despite having to shut down for two months.
Latest projections predict 2021 RV shipments surpassing last year’s sales by 33.8 percent. As a result, experts believe travelers will purchase around 576,065 to 586,281 units. The 2020 year-to-end RV shipments totaled out at 430,412 units. If the sales rate continues in 2021, they could be looking at a 14.1 percent gain over its current, comparable record made in 2017 at 504,600 units sold.
As of 2019, there were 13,000 privately owned RV parks and 16,000 public lands with parking for recreational vehicles. Some parks are as small as a few acres, whereas others are 15. KOA requires its franchisees to have a minimum of 10 acres, and the general rule of thumb is 10-12 RV spaces per acre of land. Of course, the size of a park is set by local municipalities.
If there are 28,000 parks, which are ten acres each with 10 rental spaces, it seems obvious why reservations are solidly booked for more than a year. Moreover, advisors recommending investing in RV parks for the expected 10-20+ percent ROI. Rolfe and others say:
“They’re among the highest-yielding of all real estate assets. If your goal is to maximize the return on your investment… RV parks are a pretty good place to start.”
Written by Sheena Robertson and Cathy Milne-Ware
RV Lifestyle: 2021 Camping Season Predictions from 24 Top RV Experts [EXCLUSIVE]; by Mike Wendland
Go RVing: RV Industry Facts and Figures
RV University: WHAT YOU DO TODAY DEFINES YOUR TOMORROW? By Frank Rolfe
Top and Featured Image Courtesy of Tony Webster’s Flickr Page – Creative Commons License
Inline Image Courtesy of wgossett’s Flickr Page – Creative Commons License