RV Park Industry Outlook 2025: Data-Driven Trends in Occupancy, Revenue & Cap Rates

Aerial view of a large waterfront RV resort with high site occupancy, paved pull-through sites.

Industry Performance: Slowing Growth After a $10.9B Peak

The U.S. RV park and campground industry reached an estimated $10.9 billion in annual revenue in 2025, following a strong post-pandemic rebound. Over the past five years (2018–2023), industry revenue expanded at roughly 4.3% CAGR on the back of surging camper demand. This growth was amplified by the 2021–2022 camping boom when domestic travelers embraced RVs and campgrounds as a socially-distanced vacation option. However, forecasts now point to near-zero growth through 2030 – essentially a flat trend of ~0% CAGR in coming years. In fact, IBISWorld projects slight revenue stagnation or even a -0.3% annual decline from 2025 to 2030, leaving industry sales hovering around the $11 billion mark. The dramatic deceleration reflects the normalization of demand after the pandemic surge and potential economic headwinds. Investors should temper forward expectations: the ~8% yearly revenue boom seen since 2020 is unlikely to continue, and a “new normal” of ~0–2% annual growth is anticipated.

Several factors explain this slowdown. First, the initial wave of pent-up camping demand has eased – 2024 saw flat or slightly lower occupancies (down ~3–5%) compared to the prior year as some COVID-era campers returned to traditional travel modes. Secondly, economic conditions (inflation, higher interest rates) are restraining consumer discretionary spending, which can soften longer RV trips or big-ticket RV purchases. Volatile fuel prices also loom as a wildcard: while fuel costs spiked in 2022, they are expected to moderate, potentially encouraging road trips. But any renewed fuel price surges could dampen demand for long RV journeys, a risk the industry is keeping an eye on. In short, after a decade of expansion, the RV park sector is entering a phase of maturity with modest growth prospects. Revenue is projected to inch up to only about $11.4 billion by 2028 (roughly 1% annual growth) under current forecasts. For investors, this means underwriting deals with conservative growth assumptions and focusing on operational improvements as the main avenue for boosting returns in a slowing top-line environment.

Occupancy Trends: High Demand Meets Limited Supply

One defining strength of the RV park industry has been its robust occupancy levels nationwide. On a national basis, average occupancy rates hover around 60–70% of sites occupied annually. This indicates that the typical park has over half its sites filled at any given time – a healthy utilization rate comparable to other hospitality assets. During peak season (summer months and holiday weekends), occupancy spikes dramatically. Popular destination parks often run at near 100% capacity in peak summer, with many reporting fully booked campsites during July–August. The pandemic camping craze pushed some parks to 100% occupancy for extended periods in 2021, a record-high utilization as Americans embraced road trips in lieu of cruises or international travel. Occupancies dipped slightly in 2023 from those pandemic highs as travel patterns normalized, but demand remains elevated relative to pre-2020 norms. Early 2024 data showed a strong rebound, with major operators like KOA reporting a surge in advance reservations and 56% of campers having difficulty finding available campsites due to full bookings. This high utilization environment underscores a favorable supply-demand balance that continues into 2025.

What’s driving these strong occupancies? Simply put, demand has grown faster than supply. The U.S. today has roughly 15,000–16,000 RV parks and campgrounds nationally, and that count has grown only marginally (~1% per year) in recent years. New park development is notoriously challenging – zoning barriers, land costs, lengthy permitting and NIMBY opposition all constrain new supply. Industry surveys indicate only ~5% of park operators plan to open new parks in the coming year, and even expansions of existing parks are usually modest (a few sites added here or there). The result is an aging infrastructure: many parks are decades old, and 78% are independent “mom-and-pop” operations with limited expansion capital. Essentially, supply has not kept pace with the surge in camping demand, creating a persistent capacity gap. Even as private and public operators add campsites where possible, it’s not enough to materially loosen the market. This supply-constrained scenario supports high occupancy – parks stay full because there are few new alternatives for campers. As one analysis put it, the RV park sector is now a “high-demand, limited-supply environment,” which bodes well for park owners’ pricing power and occupancy durability through 2030.

Importantly, high occupancy is not just a summer phenomenon in certain regions. The Sunbelt markets (Florida, Arizona, Southern California, etc.) enjoy year-round strong occupancy, even during traditional off-season months. Warm-weather destination parks benefit from seasonal “snowbird” migration – e.g. retirees and remote workers wintering in Florida or Arizona keep parks near capacity in winter, almost as busy as summer. This regional balance helps smooth out some seasonality: a Florida RV resort may have winter occupancy nearly as high as summer thanks to these long-term winter guests, whereas a park in the Northeast or Midwest may close or see very low occupancy in the cold season. Overall, the occupancy trend is upward over the past decade – gradual increases driven by broader appeal of RVing and longer seasons of use. Even shoulder seasons are getting a boost (e.g. many parks report stronger spring and fall visitation now than in years past, partly due to more flexible work schedules and school breaks). For investors, consistently high occupancy translates to steady cash flow, and the lack of new supply coming online suggests occupancy will remain robust. Barring a major economic downturn, most analysts expect parks to stay busy and potentially even tighten further during peak periods through 2025 and beyond. It’s a landlord’s market in many popular camping regions – a trend likely to persist given the structural supply constraints.

Investment Yields: Cap Rates Remain Elevated

From an investor’s perspective, RV parks offer attractive income yields relative to many other real estate asset classes. Cap rates for RV parks typically range around 7%–10% (often cited up to ~12% in some cases). These cap rates (net operating income divided by purchase price) are significantly higher than those of mainstream property types like apartments or industrial properties, which often see cap rates in the 4%–6% range in today’s market. For example, stabilized manufactured housing communities (a comparable asset class with long-term pad rentals) traded at roughly 5.5% cap rates in 2024. Multifamily apartment cap rates average around 5.5–6% as of late 2024, and self-storage facilities around ~6%. In contrast, RV parks changing hands at 8%–10% yields are not uncommon. In short, investors can obtain higher going-in yields on RV park assets than almost any other real estate category aside from perhaps niche hospitality or tertiary-market retail. These higher cap rates indicate investors expect a bit more return to compensate for perceived higher risk or more hands-on management in the RV park sector. Parks are active businesses with nightly turnover (more akin to hotels than to apartments), and historically they were a fragmented, mom-and-pop domain – factors that kept institutional capital at bay and cap rates relatively high.

Notably, cap rates had been compressing during the 2020–2022 boom as more investors piled into the space, but 2024 saw cap rates tick back up alongside rising interest rates. Higher financing costs and a general repricing of real estate have put upward pressure on RV park cap rates, resulting in slightly lower property valuations versus the peak frenzy of 2021. Even so, relative to other sectors, RV parks still offer a superior spread. Brokers report that in 2024 many buyers stepped back as the spread between borrowing rates and RV park cap rates narrowed (with debt costs ~7% and cap rates often in the 7%–9% range, the cash-on-cash became less compelling). Nonetheless, for cash buyers or those with low-cost capital, RV parks can deliver strong cash-on-cash returns. Investors often see opportunity to add value and drive cap rates down (and values up) through better operations: for instance, upgrading amenities or adding premium glamping units can increase NOI and thus justify a higher price (lower cap rate). Well-run parks have achieved EBITDA profit margins in the mid-teens, and with average operating expense ratios ~50–70% of revenue, there is room to optimize costs. A feasibility analysis example shows that a project at a 10% cap rate (first-year NOI of $1M on a $10M cost) is attractive given industry norms of ~7–12% cap rates. In practice, double-digit annual returns are attainable for savvy operators – many existing parks still have mom-and-pop inefficiencies that, when corrected, boost NOI significantly.

Comparing returns across asset classes: The elevated cap rates in RV parks reflect both risk and reward. For instance, top-tier apartment REITs often trade at 4–5% cap rates, and manufactured home communities at ~5.5% as noted. Even limited-service hotels (a closer cousin to campgrounds) might see 6–8% cap rates on average. Thus, an 8% cap RV park can potentially yield 150–300 basis points more than a comparable multifamily or self-storage deal. This means an investor can pocket more income per dollar invested – a compelling proposition if the asset’s risk can be managed. It’s important to note that higher cap rates don’t necessarily mean poor performance; rather, they indicate the sector is earlier in its institutionalization. Indeed, the fragmented ownership (90%+ of parks are independent) suggests room for professional operators to consolidate and modernize parks, potentially compressing cap rates over time as the asset class gains mainstream acceptance. In the meantime, 2025 cap rates in the ~7%–10% range make RV parks one of the higher-yielding real estate investments. Investors should underwrite with realistic exit cap assumptions (given higher interest rates, assume cap rates stay elevated or only compress slightly). But for those focused on current income and long-term cashflow growth, RV parks offer an appealing spread. The bottom line: relative to many other real estate investments, RV parks can generate superior yields, with cap rates often 2–4 percentage points higher than stabilized traditional asset classes. This yield premium is a key part of the investment thesis, alongside the secular demand growth story.

Regional Highlights: Sunbelt Strength and Top Markets

Like most real estate, performance varies by region in the RV park industry. Overall, the Sunbelt states and tourism-heavy regions are leading the pack in both occupancy and revenue metrics. Florida and California stand out as top-performing states. Florida in particular is an RV camping powerhouse – it accounts for about 9% of all U.S. RV park locations, the most of any state. With its warm climate and year-round tourist draw, Florida parks enjoy high occupancy even in winter, fueled by snowbirds and vacationers escaping colder climates. Many Florida parks operate near full capacity in peak season and remain busy through the shoulder months. California also hosts a large share of RV parks (no other state has more than ~7% of U.S. parks besides FL). California’s diverse landscapes and huge population of outdoor enthusiasts make it a robust market – coastal campgrounds and national park-adjacent RV resorts in California often sell out months in advance for summer weekends. Texas, the Southwest (Arizona, New Mexico), and other Sunbelt areas (Nevada, Southern Utah) are similarly benefiting from strong demand. These regions combine popular destinations with milder winters, allowing longer operating seasons. For instance, an Arizona or South Texas RV resort might have 80–90% occupancy in January when a Midwest park is closed for winter. This geographic diversification of demand means that southern and western parks can generate income year-round, boosting annual revenue per site.

Importantly, high-demand regions are also seeing the most development and investment interest. Florida leads in new RV park projects – an estimated 3,600 new RV campsites were added in Florida from 2022 to 2024 through new resorts and expansions, more than any other state. The Carolinas, Tennessee, and Mountain West states like Colorado, Idaho, and Utah have also attracted new campground developments, albeit on a smaller base. Interestingly, while California and Florida have the most parks, some of the fastest growth (in percentage terms) is occurring in smaller markets such as the Mountain West and Southeast beyond Florida. This indicates investors are looking for the “next” Florida – areas with natural attractions and growing tourism where new parks can capture unmet demand. The Western U.S. national park circuit (e.g. Utah’s canyon lands, Montana/Wyoming near Yellowstone) has seen surging RV tourism, pushing up occupancies in those regions and spurring upscale campground projects to cater to that influx.

Still, from an investor returns perspective, the Sunbelt and coastal states remain the most reliable. These areas not only have strong occupancy but often higher average daily rates (ADR) due to tourist willingness to pay. A site in coastal California or the Florida Keys can charge double or triple the nightly rate of a rural Midwest campground. High-performing parks in California, Arizona, Florida, and Texas are achieving some of the highest revenue per site in the nation, thanks to a combination of high ADR and long seasons. For example, an upscale RV resort in a prime Florida location might generate $15,000+ in annual revenue per site, versus perhaps $8,000 for a basic park in a less trafficked region.

To summarize regional trends: Florida is a standout with year-round demand and the largest share of parks. California and Arizona (and the broader Southwest) are also top regions, especially given their popularity among both retirees and younger adventure travelers. The Sunbelt in general (South and West) is capturing outsized growth, while some Northern states remain highly seasonal (great cash flow in summer, near zero in winter). Investors often focus on Sunbelt RV parks for their superior occupancy and revenue metrics. However, opportunities exist in emerging outdoor destinations in the Mountain West and others – these can yield growth if purchased right. Ultimately, location remains critical: parks near major attractions or in climate-friendly zones command premium valuations and deliver stronger, more stable returns. As one industry report noted, parks in vacation destinations or mild climates have a built-in customer base and year-round income potential, whereas a remote park in a low-tourism area might struggle unless it offers something truly unique. Thus, investors in 2025 are targeting the Sunbelt and tourist corridors as they evaluate RV park acquisitions, drawn by the resilience and upside these regions offer.

Demand Drivers: Younger Campers, Rentals and Glamping

A key reason the RV park industry has thrived is shifting demographics and new travel trends that are expanding the customer base. What was once seen as a retirement-centric activity has transformed into a diverse, multi-generational market. Several demand drivers stand out:

• Younger Demographics Fueling Growth: Gen Z and Millennials are now the engine of camping demand. In 2024, 61% of new campers were Gen Z or Millennial – a huge generational shift toward youth. These younger campers are not just dabbling; they are enthusiastic. Kampgrounds of America (KOA) reports that Gen Z campers spend an average of $266 per day on trips, far higher than Baby Boomers’ $134/day, indicating a willingness to splurge on experiences. Younger travelers often seek out unique, social-media-worthy adventures, and camping fits that bill. They also tend to camp outside the traditional summer window – taking fall trips, weekend getaways, even working remotely from campgrounds (more on that below). The influx of Millennials and Gen Z means over 65% of RV owners are now under age 55, and younger cohorts made up one-third of new RV buyers recently. This demographic broadening is making camping more mainstream and reducing seasonality, as working-age adults and families take trips year-round. KOA projects 1 million new U.S. camping households in 2025 alone, largely driven by younger first-timers. This is a bullish sign that fresh demand is continually coming into the pipeline.

• Peer-to-Peer RV Rentals and “Try-Before-You-Buy”: The rise of RV rental platforms (peer-to-peer) like Outdoorsy and RVshare has lowered the barrier to entry for camping. Many people who don’t own an RV can now easily rent one from a peer owner for a weekend, which has greatly expanded the pool of potential campers. According to industry analysis, these P2P rental services have made camping more accessible – especially to young people – by mitigating the need for hefty RV ownership costs. In essence, someone curious about the RV lifestyle can “try before you buy,” taking a rented camper to a park to see if they enjoy it. This has converted many novices into repeat campers, fueling occupancy as new customers flood in via the sharing economy. Campground operators benefit from this trend not only through increased foot traffic but also through partnerships (some parks team up with rental companies or allow delivery of rental rigs to campsites). Over one-third of campers now report working while on trips too, indicating how remote work is blending with these new ways of accessing RVs. The net effect is a broader, younger, and more inclusive customer base for RV parks, thanks in part to the flexibility that rentals and remote work provide.

• Glamping and Upgraded Experiences: Another major trend is the rise of “glamping” (glamorous camping) and demand for higher-end outdoor experiences. 34% of new campers in 2024 tried glamping – e.g. staying in safari tents, yurts, or cabins with hotel-like amenities. Nearly half of first-time glampers are Millennials with higher incomes, seeking nature without giving up comfort. The industry has taken notice: many RV parks and campgrounds are adding glamping options to attract this segment. KOA, for example, has introduced luxury canvas tents with electricity and Wi-Fi at some locations. This upscaling of amenities – from pools and spas to furnished cabins – aims to compete with boutique hotels and vacation rentals for the “experiential travel” dollar. It appears to be working: parks that invested in upscale amenities report a wealthier client base spending more per night. The global glamping market was valued around $12.4 billion in 2024 and is growing rapidly, reflecting the sizable revenue potential of this trend. While some glamping demand is absorbed by standalone glamping resorts or private Airbnb listings (indeed, the glamping boom has drawn new competitors like private landowners listing luxury tents online), many traditional RV parks are successfully capturing it by diversifying their lodging mix. For investors, parks with glamping or upscale amenities can achieve higher ADRs and longer stays, boosting profitability. A single luxury tent or cabin can rent for several times the nightly rate of a basic RV site, often yielding strong margins if occupancy holds. This trend also means campgrounds are increasingly competing with hotels in terms of service and amenities – blurring the line between outdoor hospitality and traditional hospitality.

• Remote Work and “Work-from-RV” Lifestyle: The normalization of remote work has enabled a new segment of campers: the digital nomad and work-from-campsite crowd. Many professionals now take extended road trips, working weekdays from their RV and enjoying leisure time on the side. Parks that provide reliable high-speed Wi-Fi (now considered the most important amenity by 48% of campers) and quiet work-friendly environments are reaping the benefits. Nearly one-third of campers report they have worked remotely while camping. This has materially lengthened average stays and boosted mid-week occupancy at many parks. Rather than just weekend warriors, remote workers might remain at a campground for weeks or months, effectively living there. Sunbelt RV resorts now host “workcation” guests even in off-peak months, keeping sites occupied year-round. This convergence of work and play is expected to persist long-term, as younger generations value flexibility and outdoor experiences. For park investors, catering to remote workers (e.g. upgrading internet infrastructure, creating co-working spaces or private Zoom rooms) can be a differentiator that drives occupancy in periods that traditionally were slow.

Collectively, these demand drivers – younger campers, rental access, glamping, and remote work – are expanding and diversifying the RV park customer base. The industry is no longer reliant solely on retirees or summer vacationers; it’s attracting tech-savvy millennials, families seeking affordable travel, digital nomads, and luxury travelers alike. This bodes well for long-term demand. So far, data shows that even as travel options reopen, many new campers are sticking with the hobby (KOA finds the “camping boom has staying power”). The challenge for park operators will be to keep innovating – offering the amenities and experiences these new customer segments want. But for investors, the key takeaway is camping’s popularity has broadened structurally, supporting occupancy and revenue trends for the foreseeable future.

Risks and Headwinds: Fuel, Weather, Labor and Competition

No investment is without risks, and RV parks have a few headwinds to monitor in 2025 and beyond. Here are the primary risk factors to consider:

• Fuel Prices Volatility: Fuel costs are a critical swing factor for RV travel. RVs are not known for fuel efficiency, so spikes in gasoline or diesel prices can discourage long-distance trips or increase costs for campers. A sharp rise in fuel prices could lead some would-be guests to stay closer to home or skip trips. That said, the industry has shown resilience to past fuel shocks – many campers “trade down” to RV vacations instead of flying when times get tough, since an RV trip can still be 25–60% cheaper than other travel options. During the 2022 fuel spike, many people still chose regional camping over costly air travel and hotels. IBISWorld actually expects global oil prices to decline slightly over the next five years, which could make RVing more affordable. However, fuel remains a wildcard; sustained high gas prices would be a clear headwind for campground attendance (particularly for distant destination parks). Investors should stress-test what $5/gallon gas might do to occupancies, especially at parks that rely on cross-country travelers.

• Climate and Weather Variability: Outdoor hospitality is inherently exposed to weather and climate risks. Extreme weather events – from wildfires in the West to hurricanes in the Southeast – can directly impact parks through property damage or temporary closures. Recent years have seen fires force evacuations of campgrounds in states like California and Colorado, while rising sea levels and storm surges threaten coastal RV parks in Florida and the Carolinas. Even less catastrophic variability (like an unusually cold spring or rainy summer) can dampen occupancy in affected regions. Climate change is leading to more unpredictable patterns, which could shorten seasons or increase off-season downtime for some parks. Additionally, insurance costs are rising in response to climate risks: for example, manufactured housing communities have seen insurance premiums jump 15–20% year-over-year in storm-prone states, and campground operators are likely facing similar increases to insure their properties. Over the long term, parks may need to invest in resilience – e.g. better fire mitigation, flood control measures, backup power for heatwaves, etc. – which can raise operating costs. In sum, weather is a less predictable factor that could create year-to-year volatility in certain locales. Diversifying geographically or focusing on areas with milder climates can help mitigate this risk at a portfolio level.

• Labor Shortages and Operating Costs: Running a campground is a hands-on business, and labor availability is an ongoing challenge. Many parks are in rural areas or rely on seasonal staff (students in summer, retirees as work-campers, etc.). The broader labor shortage in hospitality has affected campgrounds too, with operators in 2023–2024 reporting difficulty hiring enough maintenance workers, front-desk attendants, and groundskeepers. Labor costs have been rising due to wage inflation, squeezing margins (indeed, IBISWorld notes industry profit margins ticked down from ~15% to ~11–12% recently as labor and utilities costs climbed). If a park cannot find staff, service quality can suffer – a risk for reviews and repeat business. Larger operators are somewhat insulated by scale, but mom-and-pop parks may struggle to compete for workers. Moreover, specialized skills (plumbers for RV hookups, technicians for pool maintenance) can be hard to find in remote locales. The industry is addressing this by embracing technology (self-check-in kiosks, automated reservations) to reduce labor needs, and by recruiting work-campers (campers who trade labor for a free site). Still, investors should evaluate the labor market around a target park – e.g. is there a nearby town to draw employees from? – and budget for potentially higher wages or incentives to attract and retain good staff. Labor availability and cost are now key considerations in due diligence, as one analysis emphasized.

• Competition and Alternate Accommodations: While the overall camping pie is growing, competition is also increasing. Private equity and new entrants have poured into outdoor hospitality, meaning a new RV resort or glamping campground could open down the road from a subject property. If an area becomes trendy, it can quickly go from undersupplied to slightly oversupplied with campsites (though high barriers to entry temper this risk). More broadly, campgrounds compete with other lodging options: as pandemic fears subside, some travelers who tried RVing are going back to hotels and air travel. A campground broker noted that a chunk of COVID-era campers “have gotten back on planes,” contributing to softer demand in 2024. Traditional hotels, vacation rentals (Airbnb), and emerging glamping resorts all vie for the same leisure dollars. In particular, the rise of professionally operated glamping chains (e.g. Under Canvas, AutoCamp) means consumers interested in outdoorsy trips might choose a upscale tent at one of those properties instead of an RV park, if the RV park hasn’t kept up. Peer-to-peer rentals can also be a double-edged sword: while they bring in new campers, they also introduce alternatives (like turnkey RVs delivered to private land or national parks). Platform-based competition is growing – for instance, some landowners rent out private campsites via Hipcamp, bypassing traditional campgrounds. All this means RV parks must continually improve their offerings to remain competitive. Investors should assess the competitive landscape: What other accommodations are nearby? Is the park differentiating itself (unique location, better amenities, strong reviews)? The good news is the demand surge has outstripped supply, so even with new entrants, many parks report they are still full in peak season. But in a downturn or in a saturated tourist spot, campgrounds could face rate pressure from discounting by competitors. Prudent underwriting will account for some occupancy softening if new supply comes online locally or if consumer preferences shift again.

Despite these headwinds, it’s worth noting the RV park industry’s historical resilience. During economic recessions, camping often holds up better than expensive vacations as people seek cheaper getaways. During COVID, it thrived when other travel shut down. Even fuel price spikes haven’t completely derailed RVing – committed RV enthusiasts adapt rather than abandon the lifestyle. That said, investors in 2025 should approach with eyes open to these risks. Building in higher expense contingencies (for labor, insurance), ensuring properties have unique demand drivers (location, amenities), and possibly diversifying across regions can all help manage these challenges.

Conclusion: Outlook and Investment Implications for 2025 and Beyond

As we head into 2025, the RV park industry presents a nuanced picture for investors. On one hand, the sector boasts strong fundamentals – high occupancies, limited new supply, and multiple demand tailwinds from younger campers, remote work, and evolving travel preferences. The industry has firmly established itself as a growing niche within real estate, with 2025 revenue around $10.9B and a customer base broader than ever. Parks in prime locations (California, Florida, Arizona, etc.) are performing exceptionally well, often nearing full capacity and enjoying pricing power in peak seasons. The asset class also offers attractive income yields, with cap rates in the high single-digits translating to solid cash flows. Furthermore, fragmentation in ownership suggests an opportunity for consolidation and professional management to unlock value – many parks can still benefit from operational upgrades, modern marketing, and amenity improvements, providing upside for savvy investors.

On the other hand, growth is clearly moderating. The days of 4–8% annual revenue growth have given way to a forecast of essentially flat growth (0%–1% a year) through the end of the decade. The post-pandemic surge was an anomaly; moving forward, the industry’s trajectory is more about steady, incremental gains than explosive expansion. Investors must adjust to this reality: underwriting should assume low revenue growth and focus on margin improvement and value-add as the paths to higher NOI. Additionally, macro headwinds like interest rates have already re-priced the sector somewhat (higher cap rates in 2024), and they warrant caution in deal structuring (e.g. using reasonable leverage and expecting higher exit cap rates).

Investment strategy implications: In 2025 and beyond, successful investment in RV parks will likely involve selective acquisition of well-located assets, active management, and amenity differentiation. Core parks in high-demand regions (Sunbelt, destination spots) will continue to be sought-after for their stability. There is also opportunity in acquiring under-managed parks and modernizing them to meet new consumer expectations – for instance, adding Wi-Fi, glamping tents, or improving facilities to justify higher rates. Given the high cap rates, investors can achieve favorable cash-on-cash returns, but they should also plan for capex and improvements to keep properties competitive (e.g. adding EV charging stations as 24% of campers now own EVs, or enhancing recreation options to cater to families and millennials).

From a portfolio perspective, RV parks can provide diversification in a real estate allocation, with returns that are less correlated with traditional office or retail assets. They have a unique demand profile driven by lifestyle trends as much as economics. However, investors should ensure they are comfortable with the operational intensity – this is not a passive, triple-net asset; it requires hospitality management and marketing savvy. Partnering with experienced campground operators or third-party management firms can mitigate this risk.

In conclusion, the 2025 outlook for RV parks is cautiously optimistic. The industry’s growth is leveling off, but at a high plateau of performance. Occupancies are expected to remain strong, supported by Americans’ enduring love of the outdoors and the fact that new campsite supply will be limited. Revenues will grow more slowly, but should be stable given the entrenched demand. Cap rates offer a buffer for returns, and potential future cap rate compression (if the asset class gains more institutional acceptance) is an added bonus. Investors should monitor the key risks – fuel, weather, labor – but none of these appears likely to derail the sector in the near term, barring an extreme scenario. RV parks have proven to be resilient, niche assets that can thrive even in challenging times, as demonstrated in recent years.

For investors willing to roll up their sleeves, RV parks in 2025 present an intriguing mix of reliable income and growth-by-improvement. The freedom of the open road continues to captivate a new generation of travelers, and that broad appeal, combined with constrained supply, suggests that campgrounds will continue to enjoy favorable economics. In a world where many real estate sectors face uncertainty, the RV park industry offers a unique “real estate without a roof” investment opportunity – one backed by lifestyle trends and solid cash flows, even as it transitions into a slower growth phase. The outlook calls for steady if unspectacular growth, but with the right strategy, investors can still find plenty of adventure and profit in the RV park space in 2025 and beyond.

Sources:

• Kampgrounds of America (KOA) 2025 North American Camping Report;

• RV Industry Association;

• ARVC Benchmarking Report;

• Loan Analytics RV park feasibility studies;

• RVBusiness/Woodall’s;

• Houlihan Lokey “Real Estate Without a Roof” (Fall 2024); Statista/FRED data.