Wall Street Discovered RV Parks
Randy Hendrickson has never seen anything like it.
The CEO of United Park Brokers watches a flood of REITs, private equity and high net worth individuals pour into outdoor hospitality. The transformation happened fast.
What changed? The numbers tell the story.
The Fragmentation Opportunity
I've been tracking this sector's evolution from sleepy family operations to institutional-grade investments. The math is compelling.
90% of RV parks in the U.S. are owned by small investors with fewer than five properties. This creates a massively fragmented market with limited institutional competition.
Think about that dynamic. While Wall Street consolidated hotels, apartments, and office buildings, RV parks stayed local.
The opportunity window is closing fast.
Return Profile Analysis
The investment thesis centers on yield compression and operational efficiency gains. RV park investments can deliver 21% annual returns compared to traditional 2% investment options.
That spread attracts capital quickly.
RREAF announced a $157M deal to acquire five RV parks, with plans for a second round totaling $550M. KKR, Starwood Property Trust and Sun Communities doubled down after the pandemic revealed the sector's resilience.
The institutional validation creates a feedback loop. Higher prices, better operations, more capital.
Market Mechanics Drive Growth
The underlying demand fundamentals support the investment flow. RV wholesale shipments totaled 333,700 units in 2024, up 7% from prior year.
But here's what most investors miss about the customer base transformation.
The average age of a first-time RV buyer dropped to 32 years old. Millennials represent 38% of buyers, shifting demographics toward tech-savvy consumers who demand premium amenities and digital experiences.
This creates upgrade and expansion opportunities across existing park portfolios.
The Consolidation Play
I see three distinct investment approaches emerging from this institutional interest.
Value-add operators acquire underperforming parks and upgrade amenities. Growth investors target high-traffic corridors for new development. Yield players focus on stable, cash-flowing properties in established markets.
Each strategy benefits from the same underlying trend: professional management replacing family operations.
The fragmented ownership structure won't last. Institutional capital brings systems, technology, and operational expertise that individual owners can't match.
Scale advantages compound quickly in this business model.