The United States is currently in the middle of three catastrophes at one time: 1) Covid-19 2) economic disaster brought on by the quarantine and 3) urban unrest. But the end result is that these three events are actually pushing RV park occupancy ever higher. In fact, many Americans who did not even own RVs before the crisis began are now buying them up and hitting the highway to escape what they feel to be unsafe housing options in the cities. In fact, some RV dealerships are showing sales 30% to 50% higher than before any of this began. That makes RV parks one of the greatest contrarian investments in a troubled America. But why are RV parks doing so well?
They are all about social distancing
RV parks fit in perfectly to the new national directive of staying a safe distance from others. Many doctors have stated that the safest place to be in a Covid-19 environment is in the outdoors, which is exactly what RV parks are all about. Most people can interact as little or as much as they like while maintaining good social distancing. Sure, there are some RV park activities that must remain closed for the time being (such as square dancing) but just about everything else works well (fishing, walking, mini-golf, swimming, cooking around the fire, etc.).
They are all about economy
One of the strong points about RV parks has always been the low cost compared to other forms of travel. At a daily cost of around $30 vs. $100 + in a hotel, RV parks are popular for their financial stewardship, as well as the value they represent. Dollar for dollar there are few lodging options that can match the amount of activities at such a low cost. While this value for the dollar was popular before the pandemic, with many Americans losing confidence in the economy it has ignited even greater passion to conserve the family dollar.
They are all about being in control of your surroundings
Those who are buying RVs and hitting the road with them are in search of a more peaceful, controlled location, in which there is no poverty or urban decay. Everyone around them is similar in mission and they are trading protests and Covid-19 for beautiful scenery, nature and serene quiet. It should be easy for anyone to understand why RV parks are more popular than ever right now – just turn on the national news and watch it for ten minutes.
RV parks have always been great investments, as they are right in the middle of all the national megatrends such as the 10,000 Baby Boomers retiring per day, and the back-to-nature interests of the Millennials. But with the sudden addition of a national pandemic, national recession and urban rioting, the need and desire for RV parks is only escalating.
For more information on RV park investing – such as how to identify, evaluate, negotiate, perform due diligence on, renegotiate, finance, and operate them – then consider our RV Park Investing Home Study Course, written by the 5th largest owners of RV and mobile home parks in the U.S. Now that the future of investing has become painfully transparent, RV parks stand alone as one of the few real estate niches that still work (certainly not the case for retail, office, industrial or lodging properties).