Recreational vehicle (RV) communities, once considered a niche market and even more niche investment opportunity, have transformed into a booming long-term investment strategy.

Driven by shifting travel trends, affordability, favorable demographics and the rising popularity of the RV lifestyle, the demand for high-quality RV communities has surged since 2020, overwhelming current supply. With lower overhead costs compared to traditional real estate and a potential for strong returns over the long-term, RV communities are quickly becoming a hidden gem for real estate investors.

Highlights and Drivers

• Approximately 16,000 RV communities throughout the U.S.

• Revenue over the past five years has increased at a CAGR* of 3.1% to $10.7 billion.

• Typical monthly site rental rates at an RV community or campground range between $300 and $500.

• RV ownership has increased more than 62% in the last twenty years.

• 65% of RV owners are under 55 years old.

What is an RV Community

RV communities are locations where recreational vehicles can park and stay overnight, or longer, in allotted spaced called sites or campsites. RV communities are typically in highly-sought-after vacation destinations across the U.S. For example, proximity and convenience relative to National Parks, lakes/rivers, mountains and tourist destinations are common locations. While RV communities typically experience shifts in occupancy depending on the season, some benefit from steady year-round demand.

• Occupancy rates are highest during summer months and holidays.

• In popular destinations, like national parks and coastal areas, occupancy can be close to 100% during peak seasons.

• Regions with mild climates, like California, Florida, and parts of the Southwest, have higher and more consistent occupancy rates and act as temporary homesteads for lifestyle RVers

Types of RV Communities

• Campgrounds - An RV campground is the place to pick for RVers interested in a more traditional camping experience. Campgrounds are better suited for shorter stays, offering the basics and often with no service hook ups.

• RV Parks - RV parks are geared toward vacationers looking to have guaranteed hook-up access for air conditioning, water, electric and sewer. These types of RV parks, good for short or long stays, may offer amenities such as showers, laundry, swimming pools and other basic recreational activities.

• RV Resorts - RV resorts are a good option for full-time RVers wanting a “home away from home” that includes quality facilities and amenities. These communities – many with spacious common areas, modern bath facilities, restaurants, clubhouses and recreation centers – typically offer basic hook ups (i.e. water, sewer), plus bonuses, such as internet access and digital television. Imagine a collection of beautiful cottages in one location, with wheels.

Strong industry growth and favorable demographic trends for RV communities present a compelling real estate investment opportunity. As another form of housing, these communities have become an increasingly commonplace option for Baby Boomer and Gen X travelers. As outdoor travel continues to gain popularity and the demand for affordable accommodations rises, RV communities offer a long-term growth and income investment strategy for investors.

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This article was originally published by Inland. Please contact Inland with any questions.