Why Real Estate Investors are Paying More Attention to RV Parks

For years, RVs have been associated with retirees who spend their golden years traveling the country. But that’s changing, and real estate investors have noticed. Encouraged by these changes and seeking higher returns than those offered by traditional property types, these investors are putting more of their money toward RV parks and campgrounds, according to a report by WealthManagement.com.

“We have seen investor demand for outdoor hospitality properties explode as other sectors have continued to erode,” says Yogi H. Singh, partner of National Land Lease Capital (NLLC), a private investment firm that owns close to a dozen campgrounds, RV parks and marinas across the nation. “The national shortage of professionally developed, resort-quality assets, along with the high barriers to entry, provide insulation to the sector that we find attractive.”

New generation of RVers

Since the start of the pandemic, a growing number of Americans have vacationed in RVs or gone camping. After being cooped up for months, people craved wide open spaces and the opportunity to see new places. Today, RVing and camping remains a popular alternative to other types of travel.

While the traditional RVing retiree segment has expanded, due to the aging of the baby boomers, it’s younger generations that are currently driving most of the growth in the outdoor hospitality sector. Valuing experiences over possessions, millions of millennials and Gen Z are choosing to spend their money on travel, both domestic and international.

“Underlying consumer demand drivers for outdoor hospitality are strong,” says Carl Kruelle, chief investment officer of Blue Water Development Corp., an Ocean City, Md.-based firm that develops, acquires and operates resort-level outdoor properties, including RV parks and campgrounds. “There’s heightened interest amongst consumers to get outdoors and experience nature. That’s been a consistent trend over the last several years.”

Read the full report by WealthManagement.com.

Source: https://rvbusiness.com/why-real-estate-investors-are-paying-more-attention-to-rv-parks/