U.S. RV Park Industry Trends & Analysis (2025)
- michalmohelsky
- Jun 1
- 32 min read
Updated: Aug 9
Overview of the RV Park Landscape in the U.S.
The United States has a vast and mature RV park and campground industry. There are roughly 15,000–16,000 RV parks and campgrounds across the country, reflecting steady growth in recent years This includes a mix of private parks (by far the majority) and public campgrounds operated by federal, state, and local agencies. Industry revenues reached about $10.7 billion in 2023, and are projected to continue growing modestly to around $11.4 billion by 2028. The sector expanded at an estimated 4.3% annual revenue CAGR from 2018–2023 on the strength of rising camper demand. In terms of businesses, the RV park industry is highly fragmented – over three-quarters (78%) of U.S. parks are independently owned “mom-and-pop” operations. Fewer than 10% are owned by large corporations or chains although a few big players (like REITs and franchise networks) have been acquiring parks in prime locations. The typical park size is on the order of 90–120 sites, often on 20–30 acres of land, though this varies widely. Many parks have been in operation for decades (40+ years on average), indicating a limited new supply – new development has been slow due to various barriers (discussed later), which has kept market occupancy and pricing power relatively strong in recent years.
Table: Key U.S. RV Park Industry Metrics (2023 unless noted)
Metric | Value | Source |
Number of RV parks & campgrounds | ~15,000 in U.S. (16,000 incl. Canada) | IBISWorld via RoverPass |
Annual industry revenue | $10.7 billion (2023) | IBISWorld |
5-year revenue growth (CAGR) | 4.3% (2018–2023) | IBISWorld |
Projected revenue (2028) | $11.4 billion (forecast) | IBISWorld |
Average occupancy rate (annual) | ~60–70% of capacity | ARVC Survey |
Peak season occupancy (popular areas) | Near 100% at summer/holiday peak | Industry Data |
Typical capitalization (cap) rate | ~7% – 12% yield range | RVIA/RoverPass |
Total U.S. households owning an RV | 11.2 million (2021) – ~11% of households | RVIA/University survey |
Share of RV owners under age 55 | ~65% | RVIA/KOA survey |
Monthly site rental (typical) | $300 – $500 per month (long-term stay) | Industry analysis |
Profit margin (industry average) | ~14% (EBITDA as % of revenue) | IBISWorld |
(Sources: RV Industry Association, IBISWorld, ARVC, RoverPass, Inland Investments, KOA, MMCG rv park feasibility study)
As shown above, the RV park sector constitutes a significant niche of the real estate and outdoor hospitality market. Despite its size, it remains relatively undiscovered by institutional investors, leading to higher cap rates and many value-add opportunities for seasoned real estate investors. The landscape is characterized by a low concentration of ownership, with ~90% of parks owned by operators with fewer than 5 properties Nationally recognized brands (e.g. Kampgrounds of America/KOA, Sun Communities, Equity LifeStyle Properties) own or franchise only a fraction of total sites, meaning most parks are small businesses competing on location and guest experience rather than brand aloneohi.org. This fragmentation presents consolidation opportunities for investors, but also means operational standards vary widely from rustic campgrounds to upscale RV resorts. Overall, strong consumer demand in the past decade – accelerated by the COVID-19 pandemic – has elevated the RV park industry into a financially attractive, yet operationally unique asset class for real estate and infrastructure investors.
Occupancy Trends and Demand Drivers
Occupancy levels at RV parks have trended upward over the past decade, reflecting the growing popularity of RV travel and camping across diverse demographics. On a national basis, average annual occupancy rates typically hover around 60–70% of sites occupied, though this varies significantly by season and region. Seasonality plays a major role: parks see peak occupancy in summer months and holiday weekends, often reaching near 100% capacity at popular destinations during July–August and long holiday weekends In contrast, off-season or mid-week occupancy can be much lower, especially in colder climates where many parks close or operate at reduced capacity in winter. Year-round destinations (e.g. Florida, Arizona, Southern California) enjoy more consistent occupancythroughout the year, often maintaining high usage even in traditionally “off” seasonss For example, a sun-belt RV resort might have winter occupancy nearly as strong as summer due to snowbird travelers, whereas a park in the Northeast may only be full for a few peak months.
Historical trends: Over roughly ten years, surveys indicate a gradual increase in average RV park occupancy ratesnationwide This is attributed to multiple demand drivers: the rise of RV ownership, the influx of younger campers, and improved park amenities (which encourage longer stays). Notably, the pandemic period (2020–2022) introduced a new wave of campers seeking safe, distanced travel, which pushed occupancy to record levels in many parks. Many parks reported being fully booked for much of 2021 as domestic road trips surged. Occupancy dipped slightly in 2023 from those highs – industry operators observed a modest pullback in 2023 occupancy in certain markets likely due to a normalization of travel patterns and a cooldown in RV sales after the 2021 boom. However, this dip is viewed as temporary; early indicators for 2024 showed a rebound in bookings. For instance, Kampgrounds of America (KOA) reported a surge in early 2024 reservations, with 64% of campers having trips booked ahead (up markedly from prior years). This includes a trend of shorter booking lead times – many travelers are making last-minute plans, reflecting confidence that they can find spots or a desire for spontaneity. The overall outlook remains that occupancy will resume its upward trajectory in the near term, bolstered by robust demand from both new and returning campers.
Several key demand drivers underpin these occupancy trends:
Broader Demographics: RV camping is no longer dominated by retirees. Millennials and Gen Z campers now represent a large and growing segment, which has expanded the pool of RV park users. KOA’s research found that one-third of new campers in 2022 were millennials, and the average age of RV owners has been dropping. These younger travelers often have jobs or families that allow for weekend getaways or even full-time RV living, contributing to higher year-round occupancy in some parks.
Remote Work and “Workcations”: The rise of remote work has enabled a trend of “working from the road.” Many professionals now take extended trips in their RV while maintaining their jobs, effectively blending work and travel. This has led to longer average stays and more off-peak occupancy (e.g. weekdays) as digital nomads settle into campgrounds for weeks or months at a time. Parks that cater to remote workers with reliable internet and quiet work areas see guests staying beyond just the weekend, smoothing out some of the traditional occupancy valleys.
Travel Preferences Post-Pandemic: Road travel and outdoor destinations gained favor as safer alternatives to crowded urban vacations. Even as general travel resumes, many people who discovered RVing are continuing the habit. Surveys indicated 61% of Americans planned an RV trip in 2023, up from 48% the year before – a sign that heightened interest in RV camping has persisted. Families are drawn to the flexibility and perceived safety of RV travel, keeping demand high.
Special Events and Destinations: Localized spikes in occupancy occur around major events (festivals, sports, rallies) and at destinations like national parks. Parks near popular attractions can command full occupancy during event periods. This has spurred some investors to target parks in tourist-heavy regions (e.g. near National Parks, beaches, or theme parks) where demand is reliably high and growing
Infrastructure & Tech: Better reservation technology (online booking platforms) and the peer-to-peer RV rental market (Outdoorsy, RVshare) have made RV travel more accessible. People can rent an RV easily and secure campsite reservations online, lowering barriers to entry. This has introduced new first-time campers who fill sites, especially during peak travel seasons
Given these drivers, most industry analysts foresee solid occupancy for the foreseeable future. One cautionary note is supply: in regions where new RV parks or expansions are being added rapidly, localized saturation could temper occupancy. For instance, if a region experiences a boom in new campground development (perhaps due to cheap land and lenient zoning), operators may face competition that drives down their occupancy and daily rates. However, in many high-demand areas, barriers to entry (zoning, land costs) keep supply growth modest, which in turn supports high occupancy at existing parks. Overall, pent-up demand for outdoor recreation, increasing acceptance of the RV lifestyle, and demographic tailwinds suggest U.S. RV park occupancy will remain healthy, with peak-season full bookings becoming the norm in popular areas and shoulder seasons gradually strengthening nationwide.
Financial Performance: Cap Rates, Income Potential, and Valuations
From an investment perspective, RV parks offer attractive income potential and higher yields compared to many other real estate asset classes. Cap rates for RV parks typically range from roughly 7% up to 10% or more, depending on the property’s location, quality, and income stability. Industry sources often cite an 8%–12% cap rate range as common for RV campgrounds, which is notably higher than cap rates for apartments, self-storage, or other core real estate. These higher yields reflect the perceived higher risk and hands-on nature of RV park operations, but they also mean well-run parks can generate strong cash-on-cash returns. For instance, one RV investor notes targeting 7–8% cap rates on acquisitions with upside to 11%+ after improvements, and even higher yields (9–12% going-in cap rates) in more remote or tertiary market. In short, RV parks can produce double-digit annual yields for investors willing to manage or improve them, making the sector a “hidden gem” for yield-seeking real estate investors.
Income streams: RV parks derive revenue from multiple streams, contributing to steady cash flow. The primary income is rental fees for sites – charged nightly for short-term campers or monthly/seasonally for long-term stays. A typical park might have a mix of transient campers and longer-term occupants (seasonal snowbirds or even year-round tenants in some cases). This mix of short-term and long-term stays helps stabilize occupancy and income. For example, a portfolio might aim for ~70% of sites on annual or seasonal leases (providing baseline income) and 30% transient sites (for higher nightly rates and flexibility). Nightly rates can range widely – anywhere from ~$30–$100+ per night depending on location and amenities – while monthly site rentals typically range $300–$500 for long-term occupants at many campgrounds. Many parks also charge premium rates for “pull-through” RV sites or waterfront spots. Beyond site rentals, ancillary revenues boost the bottom line: parks often earn extra from amenities and services such as on-site stores, propane sales, firewood, laundry facilities, equipment rentals, guided tours, and storage fees (some RV parks offer storage for RVs/boats. Higher-end resorts might have added income from cabins or glamping unit rentals, food and beverage sales, or recreation (boat rentals, etc.). This diversification means that even if transient occupancy dips, other revenue sources can buffer income. According to industry benchmarking, the median RV park earned about $3.5 million in revenue in the past year (for parks ~90 sites in size), with roughly 40% from nightly/weekly rentals and 30% from monthly/seasonal rentals (remainder from other sources). Operating expenses for RV parks typically range from 50–70% of revenue depending on labor and utility costs, yielding profit margins in the mid-teens on average.
Valuation benchmarks: When valuing RV parks, investors look at both income metrics and per-site pricing. As noted, capitalization rates in the high-single to low-double digits are common, so a park generating $200,000 in NOI might be valued on the order of $2–3 million (depending on 8–10% cap rate). Another rule of thumb is price per site: recent transactions show a wide range per campsite, roughly $15,000 up to $50,000+ per site depending on amenities and location. For example, an older no-frills campground might sell for ~$10k per pad, whereas a modern RV resort with full amenities can command $50k per site or more. One 2024 sale in Wisconsin saw a 273-site RV resort trade for about $14.95 million (≈$54,700 per site), reflecting its high quality and income. By contrast, a basic KOA park in a rural area was listed at around $16,800 per site with relatively lower net income. This underscores the valuation premium for upscale parks: buyers pay up for properties with strong cash flow, tourist location, and amenities (pools, clubhouses, etc.), whereas mom-and-pop parks with fewer amenities trade cheaply per site. Notably, even at $50k per site, RV parks often still appear financially compelling because each site can generate a few thousand dollars of annual net income, yielding the high cap rates mentioned. A rough metric used by some investors is annual revenue (or net income) per site – for instance, a well-performing park might gross $6,000–$10,000 per site annually, and net about half that after expenses. Investors will seek to improve underperforming parks (via higher rates, better marketing, or added sites) to increase the income per site and thus raise the property’s value.
It’s important to emphasize that RV parks are operational businesses as much as real estate. This is one reason valuations are higher-yield: the buyer must run the property actively or hire capable management. The sector’s historically lower institutional participation (fewer big firms bidding) also contributes to higher cap rates. However, as more investors discover the strong cash flows, there is growing competition for quality assets. Cap rates for premium RV parks have compressed somewhat in recent years (mirroring other real estate), with top-tier “resort” assets in destination locations sometimes trading in the 6–7% cap range. Meanwhile, interest rate fluctuations also play a role: as general borrowing costs rise, cap rates tend to adjust upward to maintain spread. The recent high-interest-rate environment (2023–2024) has put upward pressure on RV park cap rates in some cases, although robust demand and income growth have partly offset this.
Overall, the income potential for RV parks is strong: they can produce steady cash flow with relatively low default risk(people paying nightly or monthly in small amounts, rather than a single tenant). During downturns, RV parks have shown resilience – many travelers downshift to more affordable RV vacations instead of expensive hotels, keeping parks occupied. Additionally, the tax treatment can be favorable (owners often depreciate improvements and write off expenses liberally). When managed well, an RV park investment can yield both ongoing income and long-term appreciation, especially if the owner expands or upgrades the facilities. The combination of high cap rates, diverse revenue, and value-add opportunities (e.g. improving a mom-and-pop park’s operations or adding amenities) makes the valuation outlook positive, albeit with hands-on management required.
Emerging Trends in Amenities and Services
Customer expectations at RV parks have been rising, driving park operators to upgrade facilities and diversify offerings. Amenities and services are a key competitive battleground, as modern campers seek more comfort and convenience alongside the outdoor experience. Several notable emerging trends include:
Glamping and Alternative Accommodations: Perhaps the biggest trend is the “glamping” boom, which has pushed parks to offer unique, upscale lodging beyond the RV pad. Many RV parks are adding luxury cabins, safari tents, yurts, or tiny homes on-site. These glamping units cater to travelers who want the ambiance of camping without owning an RV, and they often command premium nightly rates. The popularity of glamping has raised guest expectations for design and comfort. As a result, even traditional RV parks are elevating their offerings – from stylish bathhouses to furnished cabins – to tap into this high-end market. Park owners report that glamping accommodation can significantly boost revenue per site and broaden the customer base (attracting non-RVers). Upscale RV resorts increasingly resemble full-service vacation resorts, complete with cottages and glamorous tents integrated alongside RV sites. This trend responds to the demand for “Instagram-worthy” stays and unique experiences, allowing parks to differentiate themselves and charge resort-like prices.
Connectivity (High-Speed Wi-Fi): In today’s world, reliable internet connectivity is virtually a must-have at RV parks. Guests – from remote workers to families with streaming kids – expect strong Wi-Fi coverage across the campground. This has pushed operators to invest in better broadband infrastructure (fiber backhauls, mesh networks, etc.). Parks advertising “high-speed Wi-Fi” or even offering site-level wired internet see a competitive advantage, as remote workers specifically seek out such locations. In fact, campgrounds now market themselves as remote-work friendly, some even creating designated quiet coworking spaces or business centers. For example, one new RV park concept features a coworking lounge on-site for guests to use as an officer. The emphasis on connectivity is so strong that Wi-Fi is often listed among the top amenities alongside restrooms and hookups that campers consider. Going forward, integration of cell-signal boosters, community workspace, and perhaps tech like smart campsite management (apps for check-in, etc.) are likely to become standard as the industry modernizes.
EV Charging Infrastructure: With the rise of electric vehicles (and even electric RVs on the horizon), RV parks are beginning to add EV charging stations to serve guests’ needs. Many RVers tow their trailer with an electric truck, or drive an electric car in addition to their motorhome, and they will seek places to charge. A handful of parks now provide EV chargers at certain sites or in common areas, but adoption is still nascent – only about 8% of parks currently offer EV charging at campsites, and 5% have standalone charging stations, according to a 2023 survey. However, interest in installing chargers is growing; industry associations like RVIA are actively advocating for pull-through EV charging stations that can accommodate trailers. Future park designs may incorporate high-amperage charging as a norm. In the short term, offering even a couple of Level 2 chargers can be a draw for EV-driving campers, and some parks are experimenting with small fees for charging as an extra revenue stream. Upgrading electrical infrastructure to handle EV loads (on top of RV air conditioners, etc.) is a challenge, so many operators are watching this trend and planning phased electrical upgrades. Over the next few years, expect EV charging availability to be a differentiator, especially along travel corridors popular with RVers.
Remote Work Facilities and Longer-Stay Comforts: Tied to the connectivity trend, parks are adding features to accommodate guests who stay for extended periods or work from the road. This includes creating comfortable lounge areas, desks or work nooks in clubhouses, and private meeting rooms. Some forward-looking parks have built covered outdoor workspaces or “digital detox” zones where remote workers can focus in nature. Additionally, amenities that make long stays easier (beyond work needs) are gaining traction: full hookups (water/sewer/electric) are standard at most RV sites now (89% of parks offer them), and many parks are adding conveniences like on-site LP gas refill, dog parks (“pet runs”), modern laundry rooms, and fitness areas to serve guests who treat the park as a home-away-from-home. The goal is to entice travelers to extend their stay, or choose one park as a base for weeks at a time. Examples: Some RV resorts now feature small gyms or exercise classes, reflecting how health-conscious campers want to keep routines; others host social events (barbecues, live music) building a community feel for long-term guests.
Upscaled Recreational Facilities: The arms race in amenities also includes more resort-style recreation. In the past, a campground might have a simple playground and picnic tables. Now, higher-end parks boast swimming pools or splash pads (nearly half of parks have pools, and up to 81% of larger parks do) hot tubs, mini-golf, nature trails, and even luxury touches like spas or golf courses. Waterfront parks offer kayak or boat rentals, and some destinations include guided hikes or off-road vehicle rentals. “Campground resorts” often come with a full clubhouse, game rooms, and scheduled activities to keep all ages entertained. This trend is driven by the influx of younger, often more affluent campers who desire a vacation experience comparable to hotels or cruise vacations. By providing these amenities, RV parks justify higher rates and attract guests who might otherwise choose a hotel or Airbnb. The data shows parks have indeed been investing: many operators report adding amenities and larger, higher-quality sites in recent years to meet customer preferences. Offering unique experiences on-site not only brings in additional revenue (equipment rentals, etc.) but also serves as a marketing tool – parks can distinguish themselves as a destination.
Overall, the amenity and service upgrades in the RV park industry reflect its evolution from basic campgrounds to a form of outdoor resort hospitality. Investors should note that customer expectations will likely continue rising, and keeping a park competitive may require capital improvements (Wi-Fi upgrades, new facilities, etc.). However, these enhancements can significantly boost a park’s financial performance. As one industry publication put it, park operators are “capitalizing on premium amenities to attract and retain customers,” allowing them to charge higher rates and improve income. In summary, trends like glamping, better connectivity, EV charging, and work-friendly features are shaping the next generation of RV parks – those that stay ahead of these trends are poised to capture the growing and higher-spending segment of campers.
Shifts in Customer Demographics and Travel Behavior
The profile of RV park customers has diversified in the past decade, leading to shifts in how and when parks are used. Baby Boomers and retirees still constitute a core part of the RV community (especially for long, leisurely trips and winter snowbird stays), but younger generations are now driving growth in RV travel. As of 2025, over 65% of RV owners are under the age of 55, and the largest share of new RV buyers/renters are millennials in their 20s and 30s. This is a significant change from previous decades when RVing was often stereotyped as a retirement hobby. Several demographic and behavior trends stand out:
Millennials and Gen Z Campers: Millennials (now roughly late 20s to early 40s) have embraced camping and RVing in large numbers, especially boosted by the pandemic-era travel shift. They have become the largest generational segment of campers. KOA’s research noted millennials made up one-third of all new campers in 2022. As this cohort advances in their careers, they also have more disposable income to spend on vacations, which translates into demand for higher-quality experiences (hence the appetite for glamping and upscale amenities). Gen Z (teens and early 20s) are also entering the scene, often via family trips or van-life social media trends. Parks have observed younger guests who value a mix of adventure and connectivity – they might go hiking by day but expect to charge devices and maybe play online games at night. This blending of outdoor recreation with digital life is characteristic of younger travelers.
Rise of the RV Renter and First-Timer: Another demographic shift is the increase in people who don’t own an RV but rent one or use a family member’s. The proliferation of RV rental platforms and the sharing economy means many who show up at RV parks are first-timers or occasional users. They may need more assistance (for example, learning how to hook up water/sewer or back in a trailer). This has led some parks to adapt with more beginner-friendly services – e.g. having staff guide people to their site or partnering with rental companies for delivery/setup. This trend expands the customer base beyond the traditional RV owner community. It also means peak camping demand is less tied to RV ownership rates; even if RV sales dip, rentals can fill the gap, keeping parks busy.
Long-Term and Full-Time RV Residents: On the other end of the spectrum, there is a noticeable subset of customers who use RV parks for long-term living arrangements. These include full-time RVers (often retirees or traveling workers) and those who live in an RV as an affordable housing alternative. Many parks limit how long one can stay (some avoid “residential” use), but others welcome month-to-month tenants, effectively operating like mobile home communities. The interest in tiny homes and minimalism has also channeled some people into RV or park model living. As housing costs remain high in many areas, some working-age people choose RV living and use campgrounds as their home base. This can provide a stable income for parks (monthly rent) but can also raise questions about zoning (residential vs. transient use). Demographically, the full-time RV crowd includes not just retirees now but also younger remote workers and families homeschooling on the road.
Travel Behavior Changes: Several shifts in how people travel impact the RV park business. Firstly, shorter but more frequent trips have become common – rather than the traditional one big summer vacation, many families now take multiple weekend trips or short getaways throughout the year. RV ownership (or ease of rental) facilitates this, and campgrounds see more consistent flows of weekend warriors. Secondly, as mentioned, remote work enables extended trips, where a family might travel for a month and the parents work during weekdays. This blurs the line between peak season and off-peak; parks may see high occupancy mid-week if a cohort of remote workers is present, whereas previously mid-week was always quiet. Thirdly, road trips have made a comeback as a preferred mode of travel. Surveys show a strong preference for integrating road trips with camping – e.g., 59% of campers in one report preferred a road-tripping style of travel (moving from place to place) versus 49% who preferred staying at one campground (“stationary” camping). This means many RV travelers are covering longer distances and seeking out multiple RV parks along a route, rather than staying put. It creates opportunity for parks along major travel corridors to capture one-night stopover traffic, while destination parks can capture those who decide to linger.
Diversity and Inclusion: The new generation of campers is also more diverse in terms of ethnicity and background. Organizations like Black Folks Camp Too and others have worked to broaden the outdoor community. KOA reports in recent years have shown increases in camping participation among minorities. As the customer base diversifies, marketing and amenities are slowly adjusting – for instance, offering a wider variety of activities, being pet-friendly (a huge consideration for many travelers), and ensuring campgrounds feel welcoming to all types of guests.
Strategic Considerations for Development or Acquisition of RV Parks
For real estate and infrastructure investors evaluating RV park development or acquisitions, it’s critical to approach the sector with a strategic, due-diligence mindset. RV parks are unique assets that straddle hospitality and real estate, and successful investment requires attention to location, operations, and market dynamics. Key considerations include:
1. Location and Market Demand: Just as in conventional real estate, location is paramount. Investors should analyze the local demand drivers: Is the park near a major attraction (national park, beach, theme park, etc.) that guarantees tourist traffic? Is it along a popular travel route or interstate highway where overnight traffic is strong? Parks in desirable vacation destinations or mild climates (Florida, Arizona, etc.) often have a built-in customer base and the potential for year-round income. Conversely, a park in a remote or economically depressed area might struggle unless it has a destination in itself. Market research should cover the existing competition – how many other campgrounds are in a 30-mile radius and what is their quality? A region with few RV parks and high camping demand can be very attractive, whereas an oversaturated market could be risky (requiring one to compete on price or spend heavily on improvements to stand out). Also consider local camping trends: areas with growing tourism or in migration (e.g. booming Sunbelt regions) present better prospects than those with declining visitor counts.
2. Property Infrastructure and Expansion Potential: Evaluating an RV park property involves assessing its current infrastructure and any room for expansion. Key infrastructure includes utility hookups (electrical capacity, water supply, sewage or septic systems) – these must be sufficient and up to code for the number of sites (adding more sites may require major utility upgrades). Check the condition of bathhouses, roads, and any structures. Modern RVs often need 50-amp electric service and high water pressure, so older parks sometimes require electrical or plumbing upgrades to accommodate today’s rigs. Many parks – about 65% according to surveys – report having extra land available for future development or expansion If you acquire a park with unused acreage, that presents an opportunity to add sites or amenities (pending zoning approval) which can boost revenue. Even within the existing footprint, there may be chances to reconfigure or slightly increase density. However, be cautious: any expansion plans should be vetted against zoning limits and environmental constraints (discussed more below). In terms of site mix, consider if the park has the right balance of pull-through sites (for big rigs), back-in sites, tent sites, cabins, etc., based on demand – adjustments here can capture new segments of customers.
3. Operational Complexity and Management: Unlike a triple-net commercial property, an RV park is an operating business requiring day-to-day management. Investors need a plan for who will manage the park – whether it’s hiring an on-site general manager (many parks have one, with typical salary around $50) or contracting a professional management company that specializes in campgrounds. For smaller acquisitions, sometimes the previous owners (often a couple) handled everything; a new owner must be ready to either assume those duties or invest in staff and training. The quality of management directly affects guest satisfaction, online reviews, and repeat business. Consideration should also be given to the use of technology – modern reservation systems, dynamic pricing for sites (higher rates on holidays, etc.), and marketing strategies (social media, partnerships) can significantly improve performance. Many mom-and-pop parks haven’t optimized these, so an investor can often add value quickly by implementing better systems (yield management, online booking, etc.). However, this requires operational know-how or hiring those with experience. The labor aspect is also non-trivial: parks need maintenance crews, front-desk staff, groundskeepers, especially in larger properties. Labor availability and cost in the area (seasonal staff etc.) should be weighed; the industry is finding it harder to hire qualified employees without paying well above minimum wageohi.org.
4. Financial Metrics and Value-Add Opportunities: Investors should scrutinize a park’s financials: nightly rates, occupancy breakdown (transient vs long-term), ancillary income, and expense profile. Many parks, especially those run by long-time owners, have operational inefficiencies or under-market rates that present an upside. For instance, a park might be charging well below market nightly fees due to lack of online marketing or just owner preference – this is a value-add opportunity to gradually raise rates to market levels (keeping an eye on occupancy impact). Expanding revenue streams is another strategy: can you add glamping tents or a few cabins on underutilized land to attract a new customer segment? Can you introduce RV storage or offer boat storage if the land permits? Often, simple additions like a propane filling station or upgraded camp store can increase income. Reducing expenses can also improve NOI – e.g. installing energy-efficient lighting, or leveraging software to reduce admin overhead. The goal is to increase NOI, thereby increasing the property’s value (since value is roughly NOI/cap rate). Cap rates in this sector also reward increased stability; if you can convert more travelers into seasonal campers (with deposits or long-term leases), the perceived risk goes down and the value may go up. An example value-add case: a buyer acquires a park at a 9% cap, invests in a new swimming pool and high-speed Wi-Fi, and through better marketing attracts more families and remote workers, boosting occupancy and allowing a 15% rate hike. The resulting higher NOI could, at resale, justify an 8% cap, yielding a significant gain. Finding these under-managed parks is part of the strategy – as noted earlier, the prevalence of small owners means many parks have “good bones” but untapped revenue potential.
5. Exit Strategy and Flexibility: When developing or buying an RV park, consider the exit. Is the goal to hold long-term for cash flow, or reposition and sell to a larger operator? The buyer pool for RV parks is growing, including larger real estate funds, but it’s still more limited than for apartments or self-storage. This means illiquidity can be higher; you might not flip an RV park as quickly. However, as consolidation increases, established portfolios or REITs might pay a premium for a well-located, well-run park. Another angle: some RV parks can be converted or redeveloped partly – for instance, adding mobile home sites or tiny home communities if local regulations allow, which could transition the asset to a manufactured housing community (with potentially lower turnover). While this isn’t always feasible, having a sense of the property’s highest and best use is wise. For raw land development, also consider an exit if plans fail – is the land versatile for other uses?
In summary, due diligence on an RV park should cover market feasibility, property condition, regulatory checks, and operational planning. Engaging experts – from campground consultants to environmental engineers – during acquisition can save headaches later. The strategic appeal of RV parks lies in their strong cash flows and multiple paths to create value (rate increases, amenity additions, expansion, etc.). But the flipside is they demand active involvement. Investors who succeed in this space typically either partner with experienced operators or build that operational expertise themselves, effectively marrying real estate investment with hospitality management. Given the right strategy and improvements, RV park investments can yield substantial returns and even be positioned as institutional-grade assets as the industry matures.
Zoning and Permitting Challenges
One of the toughest aspects of developing new RV parks (or significantly expanding existing ones) in the U.S. is navigating zoning and permitting hurdles. Unlike more standard real estate categories, RV parks often don’t fit neatly into zoning codes. They can be viewed variably as commercial enterprises, recreational facilities, or even as temporary housing, depending on local ordinances. Zoning regulations and approval processes therefore present a major barrier to entry in many regions, which in turn impacts industry dynamics (limited new supply in strict areas, preserving incumbent operators’ market share).
Key challenges and patterns in RV park zoning include:
Lack of Specific Zoning Classifications: Many jurisdictions do not have a dedicated “RV park” zoning category. Instead, a proposed RV park might need to fall under a broader category like “campground,” “recreational use,” or be pursued as a special use permit within a commercial or agricultural zone. It is not uncommon for an aspiring developer to find that the local code simply doesn’t contemplate RV parks, requiring them to seek a zoning amendment or special exception. This process can be lengthy and uncertain – involving public hearings, planning commission reviews, and sometimes opposition from neighbors. For example, developers recount experiences of applying to rezone land for an RV park only to discover they must invent a new category or convince officials to treat it akin to a mobile home park (which carries different connotations).
Multi-layered Approval Process: Building an RV park typically triggers multiple permits and agency reviews – beyond just zoning. Local government will review site plans for compliance (road access, density, setbacks, etc.), but one may also need state environmental approvals, health department clearance for water and septic systems, and even Department of Transportation input for highway entrance permits. This patchwork of approvals can be time-consuming and requires expertise to manage. A delay or issue with any one agency (for instance, environmental impact assessment) can hold up the entire project. Investors often underestimate how time-consuming the entitlement phase can be: it’s not unusual for the full zoning and permitting of a new park to take 12–24 months (or more if there are legal appeals). Even expansions within an existing park may need new permits if adding sites, especially if it means upgrading utilities or altering drainage.
Environmental and Infrastructure Regulations: Campgrounds must comply with a host of environmental regulations, which can be a sticking point. Requirements like stormwater management, wetlands protection, and endangered species habitat conservation can limit where on a parcel development can occur. Sewage disposal is a critical issue – many rural parks use septic systems and must get health department approval to ensure no groundwater contamination. If a property is near a river or lake, extra scrutiny on runoff and water quality will apply. Some states require an environmental impact study for larger parks. Additionally, providing utilities can be challenging in remote areas: if city water/sewer is not available, the cost to drill wells or build a wastewater treatment system can be a limiting factor. Electrical capacity is another concern – large RV parks draw substantial power (especially with modern RVs running multiple A/C units), so developers might need to work with utilities to upgrade transformers or bring in 3-phase power, which requires planning and capital. These infrastructure hurdles often mean that not every piece of land is suitable for an RV park; finding a site with the right zoning, no fatal environmental constraints, and accessible utilities is a tall order.
Community Resistance (NIMBYism): Like many developments, RV parks can face local opposition. Nearby residents sometimes raise concerns that a new RV park will bring traffic, noise, or undesirable activities. There can be stigma, with opponents equating RV parks to trailer parks or assuming it might attract transient populations. Zoning hearings may get contentious with citizens objecting, which puts pressure on officials. Successful developers address this by demonstrating the economic benefits (tourist spending, jobs) and by agreeing to conditions (e.g. buffering the park with landscaping, enforcing quiet hours, etc.)quora.com. Nonetheless, community pushback has killed or delayed many RV park projects. In areas where residents are particularly sensitive (for instance, high-end communities or environmentally pristine locales), approvals can be extremely hard to secure. Conversely, some communities eager to boost tourism actively welcome new campgrounds – it varies widely by location.
State and Regional Differences: Certain states are known for more stringent regulatory environments. For example, California has complex regulations for campgrounds and often strict local planning processes, making it one of the tougher places to develop new RV parks (California’s RV park codes overlap with mobile home park regulations, adding complexity). States like Washington and Colorado also have high environmental standards and growth management laws that can limit rural development. On the other hand, states in the Southeast or Midwest might have more straightforward paths, seeing campgrounds as beneficial use of land. High-barrier-to-entry states have seen less new campground supply in recent years, which means existing parks in those states often enjoy high demand and less competition. For an investor, buying in a state where new entrants are effectively kept out by regulation can be advantageous (creating a semi-moat around your asset). However, those same regulations might limit how much you can expand or improve the property.
Permitting for Improvements: Even after acquiring a park, any substantial improvements (adding 50 more sites, building new structures, etc.) will likely require permits. Renovations might need to comply with updated building codes (ADA accessibility in restrooms, for instance). Adding rental cabins might trigger lodging taxes or different fire/safety codes. Some owners have been caught off guard that adding a few park model RVs for rental was viewed by the county as a “mobile home development” requiring different permits. It’s crucial to engage with local planners early and often to clarify what is allowed and what paperwork is needed. As one guide put it, be prepared for a “multi-agency review process that can take months”, and build that timeline into your project budget.
Despite these challenges, perseverance can pay off. The difficulty in obtaining permits means that once a park is approved and built, it enjoys a kind of scarcity value. For instance, in a coastal town that finally allowed one new RV resort after years of discussion, that resort may face virtually no new competition for a long time, making it extremely valuable. Zoning hurdles thus contribute to the industry’s supply-demand favorability. For investors, the key is to do homework upfront: understand the zoning designation of the target property, consult with local land use attorneys, and factor in a generous time (and cost) contingency for entitlements. If acquiring an existing park, verify that it has a valid permit to operate and that all sites are properly permitted (some older parks may have expanded informally over time). Compliance issues can usually be resolved, but they might require investing in infrastructure upgrades or reducing site count to meet spacing regulations.
In summary, zoning and permitting for RV parks can be a complicated maze, but it’s a crucial piece of the puzzle. Markets with tough zoning create high barriers to entry (benefiting incumbents), whereas areas with permissive zoning might invite more competition but allow easier expansion. A strategic investor will weigh these factors – sometimes acquiring in a strict area for long-term monopoly-like advantages, or alternatively targeting an area where they can more easily execute a development to capture unmet demand. Navigating the regulatory landscape is as important as the physical development itself in the RV park business.
Impact of Economic Cycles and Fuel Prices on RV Travel Demand
The RV park sector, like all travel-oriented industries, is influenced by broader economic conditions and fuel costs. However, it has shown a degree of resilience through cycles, often behaving a bit differently than luxury travel segments. Here’s how economic booms, busts, and gas price swings tend to affect RV park demand:
Economic Cycles: During strong economic periods (rising incomes, low unemployment), one might expect more leisure travel in general – and indeed, RV park revenues have grown in the past decade alongside economic growth. A healthy economy means people have the disposable income to buy RVs or take vacations. That said, RV vacations are often viewed as a cost-effective alternative to pricier travel. In times of economic uncertainty or mild recessions, many travelers don’t eliminate vacations entirely, but they may opt for closer-to-home or cheaper trips. RVing can fit that bill. For example, during the 2008 recession, RV sales took a hit (big-ticket purchases were postponed), but campground attendance eventually rebounded as families substituted campground stays for expensive fly-away trips. More recently, surveys have indicated over half of RV owners plan to use their RVs as much or more even during economic downturns. This suggests that once someone owns an RV, they see it as a sunk cost and will maximize its use rather than spend on hotels. Moreover, RV parks can capture business from budget-conscious travelers “trading down” from hotels during recessions. Overall, the industry often touts RV parks as “recession-resistant” investments mmcginvest.com. Parks benefit from a loyal customer base that prioritizes camping; people may forego a costly international trip but still book a weekend at the campground to get away. Indeed, during the COVID-19 economic shock (early 2020), when many hospitality sectors collapsed, RV parks fared relatively well after the initial lockdown – by summer 2020, many parks were booming as RV travel was seen as a safe, economical escape.
That said, severe or prolonged economic downturns can still have negative effects. If unemployment spikes and incomes drop significantly, new RV purchases will fall (as seen by a sharp decline in RV shipments in such times). Fewer new RV owners could mean a lagged impact on campground usage. Additionally, some campers might shorten their trips or opt for state parks and boondocking (free camping) to save money, which can affect private park occupancy. Commercial park operators might respond by offering discounts or seasonal specials to entice budget travelers. But compared to, say, hotels in a recession (which might see business travel dry up and occupancy plummet), RV parks often maintain a baseline of business from full-time RVers and committed campers. In summary, moderate recessions tend to shift consumer behavior in ways that can actually sustain RV park demand (vacation substitution effect), whereas only a severe sustained downturn would likely cause notable drops in occupancy.
Fuel Prices: Gasoline (and diesel) prices are a more direct swing factor for the RV world. RVs, especially motorhomes and trucks towing trailers, are fuel-hungry. Intuitively, sharp increases in fuel prices can dampen RV travel as it becomes more expensive to drive long distances. Historically, when gas spiked (e.g. 2008, 2022), some RVers adjusted by traveling shorter distances, taking fewer trips, or staying longer in one spot to reduce driving. However, the impact of fuel costs is often less dire than assumed. For one, fuel is just one component of an RV vacation’s cost. Studies have found that RV vacations can be 25–60% cheaper than other travel even when factoring in fuel. A press release from Go RVing highlighted that a family of four can save ~60% by RVing versus other vacation types, and a couple can save ~46% on average These savings provide a buffer; even if gas prices rise, an RV trip may still be cost-effective compared to flights, rental cars, and hotels. Many RV owners seem to accept fuel price volatility as part of the lifestyle and will budget accordingly. For instance, in 2022 when fuel prices hit multi-year highs, surveys by RV associations reported that while some RVers planned slightly shorter trips, the majority still intended to travel – they might cut spending elsewhere or stay closer to home, but they weren’t going to abandon their camping plans.
Moreover, as mentioned earlier, rising incomes can offset fuel costs. In recent years, disposable income growth has outpaced some of the fuel inflation, and forecasts suggested this would “mitigate volatile oil prices” and keep road trip demand strong. People might complain about $4 gas, but they still fill up the tank for summer vacation if they’ve been cooped up. Another factor is that once a large capital expense (buying an RV) is made, owners are psychologically inclined to use it to justify the purchase – they’ll absorb higher fuel costs rather than let the RV sit idle. Of course, extremely high prices (say, an oil crisis scenario) would be a different story, potentially curtailing non-essential driving significantly.
For RV park investors, fuel price swings typically manifest as shifts in travel patterns rather than total demand. When gas is expensive, campers may choose destinations closer to home (so a regional park might still do fine, while very far-flung destinations see a dip). Parks might see longer average stays (to make the most of the fuel spent getting there) instead of many short trips. On the flip side, if fuel prices drop considerably, it can spur more and farther travel – benefiting parks in remote scenic areas. There’s also a trend to watch: emergence of electric vehicles and more fuel-efficient RVs. Electric tow vehicles and improved mileage RVs may reduce the sensitivity to fuel costs over the long term. If charging infrastructure grows (as discussed), the “fuel” for RV trips might increasingly be electricity, which could decouple RV travel from oil price volatility. We’re not there yet at scale, but investors can monitor e-RV developments (a few electric motorhome prototypes are in the works, though widespread adoption is years away).
Other Economic Factors: Beyond GDP and gas, a few other macro factors influence RV parks:
Interest Rates: Indirectly, higher interest rates can affect RV park development and acquisition (cost of capital), but for demand, it also affects RV financing. When interest rates are high, financing an RV purchase is costlier, potentially slowing RV sales – which in turn could mean fewer new RVers entering the market in the short term. However, the large existing base of owners (over 11 million households) provides momentum; not every camper is a new buyer.
Inflation: Inflation in food, campground fees, etc., might impact how much campers spend on ancillary services, but people may simply adjust budgets. Notably, many parks increased their nightly rates in 2022–2023 in line with inflation and high demand – about 64% of parks raised main-season rates in 2023 over 2022. The fact that they could do this and still see strong occupancy indicates solid pricing power, although continued inflation could test price sensitivity.
Outdoor Recreation Trends: During economic or global disruptions (like the pandemic), preferences can shift. The pandemic uniquely boosted RV camping as a perceived safe haven, which might not be replicated in a typical recession. But it did expand the customer base permanently.
In summary, RV parks have proven relatively robust through economic cycles, often benefiting from the affordability perception of RV travel. Fuel prices do introduce some headwinds when high, but so far the industry has weathered fuel spikes with only minor adjustments by travelers. One reason is that the RV lifestyle itself has a strong pull – it’s not just a rational economic choice, but a passion for many. People who love camping and RVing will cut corners elsewhere before they give up their trips. For investors, this implies that well-located RV parks can maintain occupancy even in lean times, though one should plan for slight revenue dips if, say, a recession coincides with $5 gasoline. Diversifying customer mix (transient travelers and long-term renters) can also hedge against volatility; long-term occupants are less likely to leave due to a short-term fuel price spike. Ultimately, the long-term trendline is positive – outdoor recreation continues to grow in popularity across generations, and that underpins a promising demand outlook for RV parks regardless of short-term economic swings.
Conclusion: The U.S. RV park industry sits at the intersection of real estate, tourism, and lifestyle trends. Recent years have demonstrated its capacity for growth and adaptation – from surging occupancy and revenues, to rapid amenity upgrades and a broadening customer base. For investors, RV parks offer compelling cash yields and diversification, with the caveat of operational intensity and regulatory complexity. Key metrics like occupancy and ADR (average daily rate) have been rising, fueled by demographic tailwinds (younger campers with enthusiasm and means) and a sustained love affair with the outdoors. Going forward, industry experts foresee sustained demand as millions of Americans continue to seek the freedom of the open road and the comfort of well-appointed campgrounds. Investors entering this space should leverage data-driven insights – such as those in this report – to identify opportunities where market demand, property potential, and strategic execution align. With prudent management and vision, RV park investments can deliver strong income and long-term value, all while enabling the great American tradition of exploring nature on wheels.
Sources:
RV Industry Association (RVIA) – Campground Industry Market Analysis and Press Releases
National Association of RV Parks & Campgrounds (ARVC) – 2023 Industry Benchmarking Report
Inland Investments – RV Communities Investment Opportunity (2025)
MMCG Invest – Current State of the RV Park Industry 2024
RoverPass – Industry Statistics and Guides
Kampgrounds of America (KOA) – Annual North American Camping Reports (2023–2024)
Statista – Market Size and RV Ownership Statistics
Go RVing / RVIA – RV Travel Cost Savings Study(Press release, Dec 2024)(Additional citations inline.)