Openpath
Newsroom

RV park investments are quickly becoming today's most exciting opportunity in real estate. These large tracts of land provide temporary living quarters for travelers and van-dwellers alike, allowing them to explore the outdoors without compromising access to convenience.

These properties are nothing new, with the average age of American RV parks being 40 years old. But with the recent uptick in demand, supply is now outpaced, and the market has become a fertile ground for innovation. Today's investors are challenged to reimagine these spaces with sustainability and value creation in mind, making them even more appealing to pursue.

Understanding the Growing Demand for RV Parks

That time in history ignited a desire for self-contained experiences in nature among travelers who could afford to work remotely, and a growing need for practical, cost-effective housing solutions for those who could not. RV parks offered a viable answer to these dilemmas, and the industry continues to reap the benefits today as the appeal of RV living remains strong.

Are RV parks profitable? Well, the global market was valued at $38.9 billion in 2022 and is now projected to grow by nearly 5% annually, reaching over $56 billion by 2030. Around 11% of U.S. households now own an RV, driving up occupancy rates and revenue streams for RV park operators.

While these parks used to be dominated by retirees, the scene looks quite different nowadays. These parks have evolved to meet the needs of a broader audience, including seasonal and transient workers who travel out-of-state for short-term job assignments. For these workers, RV parks serve as a cost-effective housing alternative, allowing them to save significantly compared to hotel stays or apartment rentals. This demand greatly contributes to the increase in investment potential of these properties.

At the same time, younger travelers are reshaping the demographic. Half of all RV-ers are now aged 18 to 44, with millennials making up the majority at 62%. Many of these younger travelers are embracing remote work and virtual education to complement their life on the road. With over 70% of RV-ers aged 25 to 34 working remotely, RV parks have become hubs of both work and play.

To meet the demands of this tech-savvy, work-oriented crowd, operators must step up their game with amenities that align with the lifestyle. However, the current industry is heavily fragmented. Over 90% of America's 8,000+ RV parks are operated by “mom-and-pop” owners with fewer than five properties. These owners often lack the resources or desire to improve and modernize their parks. In fact, despite over 493,000 RVs being produced in 2022, only 15,000 new RV pads were developed. This leaves remarkably large value untapped — something investors like you can certainly capitalize on.

What Makes RV Parks a Good Investment?

There is no doubt that RV parks are the latest sought-after asset class for anyone looking to invest, but does it have actual growth potential? You’ll be pleased to know that all signs are pointing in the affirmative. The following are some factors that make RV park investments an excellent choice.

Low Maintenance for High Returns

Unlike apartment complexes or commercial buildings, RV parks don't require heavy upkeep. Guests bring their own living spaces, so investors can sidestep costs associated with maintaining residential units. You may be asking, “How much do RV parks cost?” Building new RV parks is largely cost-efficient, with pads priced at around $55,000 to build and valued between $85,000 and $120,000 upon completion. There are also fewer structural repairs and lower operational expenses in the long run.

Sustainable by Nature

A standard RV park already leaves a lighter environmental footprint than most real estate developments. With smaller-scale infrastructure needs and lower resource consumption, they align with sustainable investing goals. If you want to amplify a park's sustainability credentials, you can incorporate green technologies such as solar energy, efficient water systems, and recycling to offer consumers more ethical travel options.

Recession-resistant Assets

When the economy takes a hit, you can expect RV parks to remain resilient. They provide an affordable travel option, attracting both budget-conscious tourists and long-term renters. There's steady demand that readily translates into consistent cash flow, even during economic downturns.

Tax-friendly Investment

Investors can benefit from tax strategies like bonus depreciation for the first year and Section 179, which is an immediate expense deduction for purchases of depreciable business equipment. RV parks also offer various other tax advantages, including deductions for maintenance and utilities. In certain states, RV park owners may also qualify for property tax exemptions, which can boost profitability even further.

Key Considerations and Strategies for RV Park Investments

Like any investment, RV parks come with their own set of challenges. No matter how promising the market is, there are still non-negotiables and considerations to ensure your RV park investments don’t fall short.

1. Invest in Differentiating Amenities to Withstand Market Fluctuations

Rising fuel costs and economic instability may cause fluctuations in the market, deterring some travelers from reaching RV parks. The same can be expected during winter months, which may mean slower business for parks.

To offset any dips in short-term occupancy, you can diversify your revenue streams. In this case, add vending machines or premium amenities available year-round, such as high-speed internet and co-working spaces. Such features can also keep occupancy rates steady during slower months, since your parks remain attractive to remote workers and long-term tenants.

This can also be a chance to tap different markets. Most RV parks cater to budget travelers, leaving a significant gap in the high-end segment. You can leverage “value-add” opportunities to cater to other travelers by acquiring underperforming parks and developing them into modern, luxury parks with superb amenities like resort-style pools and wellness facilities.

2. Perform Due Diligence, Particularly with Location

Another factor that may pose a challenge is your location. Often, the success of an RV park hinges on where it is on the map. Parks near tourist hotspots or major highways tend to see higher demand, while remote or seasonal locations may struggle.

To avoid such a dilemma, research the market thoroughly. Focus on locations with growing RV ownership and thriving local tourism. Evaluate zoning regulations, climate conditions, and proximity to attractions to ensure you're making a sound investment.

3. Adapt to Rising Trends

The sharing economy has already penetrated the RV market. Peer-to-peer RV rentals have become a means to meet increasing demand. While this can be a challenge in terms of maintenance and broadening the capacities of an RV park, it also poses a chance for investors to reimagine parks as modern, adaptable spaces for a new generation of travelers.

4. Enlist the Help of Experts Who Share Your Values

To find uninterrupted success in your investments, it helps to get support from seasoned experts in the field. Work with firms like OpenPath to manage your RV park investments and take the guesswork out of finding the perfect property to add to your portfolio. OpenPath's leadership boasts more than 20 years in acquisitions and implements a vertically integrated management system that allows us to manage investments successfully.

For investors who value sustainability as much as financial growth, OpenPath is the perfect partner. Our approach places environmental and social responsibility at the core of every decision, ensuring long-term value across our entire portfolio. We work with local charities, encourage tenant participation, and actively seek ways to improve community outreach and impact on a hyper-local level.

Make Your First RV Park Investment with OpenPath

Compared to other real estate ventures, RV parks represent a niche market with relatively low competition. Investors looking to diversify will find RV parks a compelling alternative to traditional property types, especially if you want a property that successfully blends sustainability, profitability, and economic resilience.

The growing demand for RV parks, coupled with their cost-efficient development and potential for social impact and high returns, makes them an attractive investment for discerning investors.

If you’re after steady cash flow, long-term growth, and a way to make a positive impact, RV park investments present a promising path forward. Contact OpenPath today and discover how you can combine profit and progress in every step of your investment journey.