Quick answer: RV parks and glamping campgrounds are one of the fastest-growing segments of recreational real estate, fueled by surging camper demand, low operating costs, strong tax advantages, and a highly fragmented, "mom and pop" ownership base ripe for consolidation. Industry reports point to annual returns in the 8% to 12% range, and the sector has historically held up well even during recessions.
How I Got Started Investigating RV Park Investing
My interest in the recreational real estate sector, and specifically the meteoric growth of luxury RV and glamping campgrounds, started with a personal purchase. Spending north of half a million dollars on an Entegra or Newmar motorcoach, or up to $3 million for a Newell or Prevost coach, just to park and sleep in a campground once seemed hard to understand. That changed when the COVID-19 pandemic hit and we bought our own forty-five-foot diesel pusher Class A motorcoach in 2020, so we could keep traveling for work while enjoying recreation time with less unnecessary contact during active social distancing.
That purchase opened the door to a range of industry experiences, some good and some not so good. We found that our coach's size and electrical demand sometimes ran into real infrastructure limits: some parks only offered 30-amp service, others had just a few 50-amp spots or lacked the physical space we needed, and some hadn't matched road and tree-trimming maintenance to the size of the rigs now visiting. Every one of those experiences pointed toward an investment opportunity, and the RV and glamping park sector turned out to be backed by strong market trends along with compelling financial and tax advantages.
Top Reasons RV Parks and Glamping Campgrounds Are a Compelling Investment
1. Demand for Quality RV Parks Has Outpaced Supply
Demand for quality RV parks has been soaring, especially during and after the COVID-19 pandemic. In 2021, 93.8 million people went camping, and KOA's 2022 camping report found that more than 22 million new households took up camping as a regular activity between 2014 and 2021. This surge has outpaced available campsite capacity, pushing prices and investor returns higher, while rising sales of luxury motorcoaches and fifth-wheels have made it harder for campers to find suitable spots at older parks with limited electrical, water, waste, and road infrastructure.
2. RV Parks Provide a Steady Source of Income
RV parks generate income through a mix of monthly, long-term, short-term/transient, and daily rentals, plus upsell recreational amenities. This diversified income mix helps ensure consistent revenue regardless of seasonal swings or broader market fluctuations that hit other real estate sectors harder.
3. Low Maintenance With Long-Term Growth Potential
Operating an RV park typically requires minimal maintenance, since many areas are kept naturally grassy and gravel or are paved and need little active upkeep. That keeps operating costs down while the underlying real estate still benefits from long-term appreciation, giving the sector more upside potential than identifiable downside risk.
4. Meaningful Tax Benefits
Many RV parks sit in agricultural zoning districts that enjoy lower taxation rates than other commercial properties. Investors can deduct expenses such as repairs and equipment upgrades, and many states offer property tax exemptions for properties held in LLC or corporate structures.
5. Low Barrier to Entry
Initial capital requirements for RV park investing are generally lower than for other types of real estate. Many parks reach cash-flow positivity within their first few years of operation. While luxury parks with extensive amenities cost more to enter, the overall barrier remains well below that of ventures involving permanent structures and complex development.
6. Multiple Ways to Diversify Revenue
Beyond traditional campsite rentals, RV parks can generate income from glamping and cabin rentals, RV storage, boat and equipment rentals, laundry and vending amenities, and food or merchandise concessions. This diversification improves profitability while reducing risk.
7. A Highly Fragmented Market
The U.S. RV park industry is highly fragmented, with over 8,000 parks, 90% of which are owned by small "mom and pop" investors with five or fewer properties. That fragmentation creates significant opportunities for investors to acquire and consolidate properties, adding value and achieving higher returns faster.
8. Rising RV Ownership
Although 2023 and 2024 delivered lackluster sales for many RV manufacturers, largely due to elevated interest rates, RV ownership has still climbed more than 62% since 2001, with an estimated 11 million RVs now owned nationwide. The RV Industry Association's 2024 report projects 5% year-over-year growth in RV shipments, and KOA's 2023 report found that 44% of glampers plan to choose camping over other leisure trips in the coming year.
9. A Historically Recession-Resistant Asset
RV parks are often considered recession-resistant thanks to low operational costs, steady rental income, multiple revenue streams, and broad tax benefits. During downturns, they can remain profitable by offering a more affordable alternative to hotels and resorts; historical data from the 2008 recession shows RV parks continuing to see revenue growth while other asset classes declined.
10. Higher Occupancy Through RV-Sharing Apps
RV-sharing apps such as Dirt, Trip Wizard, Harvest Host, Outdoorsy, and GoodSam have expanded the market by making RV rental sites easier to find and book, driving increased demand and occupancy for reputable RV parks.
What Kind of Returns Can Investors Expect?
According to industry reports, investors can expect annual returns ranging from 8% to 12%, with some high-demand locations achieving even higher returns, supported by high occupancy rates and diversified revenue streams.
What Are the Risks of RV Park and Campground Investing?
As with any asset class, RV park investing carries risks worth evaluating carefully:
- Dependence on a single employer or attraction: Parks in markets that rely heavily on one major employer or attraction can suffer if that anchor experiences a downturn, downsizes, or relocates. Investors should confirm economic diversity in the local market, or look for parks that are themselves a destination.
- Aging utility infrastructure: Parks established more than 50 years ago may have outdated utilities, leading to higher upfront investment or ongoing maintenance costs. Thorough inspections and upgrade budgeting help manage this risk.
- Property management challenges: Managing a park with high guest volume can be difficult without an experienced management team, potentially leading to inefficiencies and lower guest satisfaction. Investors should either manage hands-on or carefully vet a property management company's track record.
How Can Investors Mitigate These Risks?
Risk can be managed through thorough due diligence and strategic planning, including detailed market analysis of the local economy and demographics, comprehensive infrastructure assessments before purchase, and selecting a property management partner with a proven record in similar properties. Investors who approach the sector with experience, discipline, and a methodical process can meaningfully reduce these risks.
The Bottom Line
Investing in RV parks and campgrounds is a promising opportunity for real estate investors looking to capitalize on the growing trend in outdoor recreation and camping. With a low barrier to entry, multiple ways to diversify revenue, and a recession-resistant nature, the sector offers an attractive combination of upside and manageable risk, especially for investors who don't have the larger capital typically required for ground-up site and building development.