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September 1st, 2013

Memo From Frank & Dave

My daughter is off on another RV trip as I write this newsletter. She’s with her best friend and her family on a trip in a fifth-wheel to a Missouri lake. People don’t know much about Missouri, but it has the largest man-made lake in North America (Lake of the Ozarks) and about 202,000 acres of park and recreation land, ranking 15th in the U.S. Here in a few days, I’m going to hear all the stories from the trip, and all the fun she had in the RV. That same story is happening across America right now. More and more people are learning about all the fun they can have – and money they can save – by taking vacations in RVs. Don’t believe me? Just drop by any RV sales center right now and you’ll see more people than you’ve ever seen before. Want the real statistics? See the article below.

Report Shows Robust Growth For The RV Park Industry

The RV Park business is a simple concept. You provide spaces for RV’s to park. As a result, the more RVs on the road, the more customers in RV Parks. If that’s the case – and it has been for decades – then the RV Park industry is in for a great ride, thanks to demographic shifts in the U.S. and in consumer tastes for the RV product.

RV sales are predicted to go up 4.8% per annum through 2017

Thanks to many demographic issues, the RV business seems to be in the right place at the right time right now. If you thought you’ve been seeing more RVs on the road than you have before, you’re right. The industry is currently growing by around 5% per year. Considering the fact that we’re in a national recession, that’s pretty impressive. When you factor in compounding, the sales of RV’s by 2017 will be up 30%.

The industry will hit sales over $10 billion per year by 2017

$10 billion is a giant figure. With sales that large, the industry will gain a huge amount of marketing exposure, which will lead to even more sales interest. Expect expanded financing programs to cater to such a large market, which will also result in stronger sales. There are roughly 300,000 units sold each year currently, which will rise to 400,000 by 2017. In addition, there are currently 9 million RVs on the road. That’s a phenomenal number of RVs.

Phenomenal growth in the 55 to 64 year old buyer pool

This is just a matter of good luck – nothing that the RV industry had anything to do with. The “baby boomers” are finally growing old, and have fallen into the 55 to 64 age bracket, which is the largest pool of RV buyers. There are roughly 10,000 baby boomers per day retiring in the U.S., and this will continue on until around 2025. The “baby boomers” have impacted just about every supply/demand feature in the U.S., and now their mass is impacting RV sales in a very positive way.

New products are helping this trend

The RV industry has been refining its products as a result of the U.S. recession beginning in around 2007. They have strived to build more attractive models with better features and lower prices. I was in a decked-out travel trailer recently that sells for under $15,000. It was an amazing value. If you have not seen the current RV models, you owe it to yourself to head to the nearest dealer and see the values that they now provide.

The south and west are the hot spots in sales

While RVs are being sold across the nation, the highest concentration of RV sales will be in the west and south. Why is that? Among other items, that’s where most of the baby boomers are. Additionally, the weather is more conducive to camping and there is more wide-open space to camp in. While RV parks do well in most every state, parks in the south and west stand to have higher occupancy as a result of this concentration.


New statistics show that the RV industry is alive and well, and getting stronger every day. As the sale of RV’s increases, so will the occupancy in RV parks. Things are looking bright for RV park owners, and the fundamentals look strong for decades to come.

Hunting For An RV Park Deal?

RV Park Deals

If you are looking for an RV park to buy, you need to enlist several different sources at the same time. These include listings on RVParkStore.com and Loopnet.com, as well as calling on all industry-specific brokers and direct contact, via mail and phone, with existing RV park owners. You should not just follow one path, but create the power of multiple sources of leads at the same time. Finding an RV park to buy is a volume business. The more deals you look at, the better your odds of finding the right one. In addition, you’ll get more familiar at discerning between a winning deal and a loser as you get more accustomed to looking at park financials and locations. Don’t forget that many brokers carry “pocket listings”, which are not advertised publicly. When you call a broker about a specific RV park, ask them if they have any other properties you might look at. Most brokers have at least a couple that they are holding in reserve – possibly a seller who does not want the fact that his park is for sale to made public. Some of these “pocket listings” are the best source of great deals. But the most important thing to remember is that the secret to success is volume, volume, volume.

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