What’s the Best State to Invest in RV Parks?

Introduction

The recreational vehicle (RV) industry has experienced significant growth in recent years, transforming RV parks from simple campgrounds into lucrative investment opportunities. As more Americans embrace outdoor adventures and the flexibility of the RV lifestyle, the demand for quality RV accommodations continues to surge. This sustained interest, coupled with evolving demographic trends and the rise of remote work, positions RV parks as an attractive asset class within the real estate market. However, not all states offer the same level of profitability or present the same opportunities for investors. This blog post will delve into the current market outlook for RV park investments, explore the key factors that contribute to a state’s investment potential, and highlight the top states that stand out as prime locations for RV park development and acquisition in 2025.

RV Park Investment Market and Trends

The U.S. RV industry is currently on a stabilizing growth trajectory, following a period of volatile expansion. Industry forecasts predict a modest increase in RV sales, with shipments expected to hover in the range of 350,000–400,000 units per year by the late 2020s [1]. While elevated interest rates may present a headwind for big-ticket RV purchases, consumer enthusiasm for RVs remains strong, underpinning a resilient market.

Despite the rising demand, the supply of RV parks and campgrounds remains constrained. The nation currently has approximately 15,000–16,000 RV parks, a figure that has grown only gradually over time. New RV park development has been limited, with an annual growth rate of only about 1% [1]. This scarcity is primarily due to significant barriers such as restrictive zoning regulations, high land acquisition costs, and lengthy permitting processes. Many existing parks are decades old, and the pipeline for new developments is relatively small, creating a notable supply gap in many regions across the country. Florida, however, stands out as a leader in new construction, having added approximately 3,600 RV sites between 2022 and 2024 [1].

This imbalance between growing demand and limited supply has led to consistently high occupancy rates in RV parks. Typical RV parks operate at an average of 60–70% occupancy annually, with peak summer seasons often seeing utilization rates near 100% at popular destinations. Analysts widely anticipate robust occupancy levels through 2030, as demand continues to outstrip the availability of sites in numerous markets [1].

Several key drivers are fueling this long-term growth in RV park usage:

•Demographic Expansion of RVers: The demographic profile of RV owners is shifting, with over 65% now under the age of 55. Millennials and Gen Z represent a rapidly expanding segment of campers, driven by lifestyle changes that emerged during the pandemic. This influx of younger enthusiasts broadens the customer base and contributes to a more resilient and less seasonal demand for RV parks [1].

•Remote Work and “Work-from-RV” Lifestyle: The widespread adoption of remote work has enabled a growing number of professionals to embrace a

“work-from-RV” lifestyle. This trend has led to longer average stays and increased mid-week occupancy, as campgrounds become semi-residential bases equipped with Wi-Fi and other amenities necessary for remote work. This cultural shift is expected to continue driving RV park usage across all seasons [1].

•Domestic Travel & Outdoor Recreation Trends: Even with the resumption of international travel, many Americans continue to prioritize domestic road trips and outdoor vacations. RV travel is perceived as a safer, more flexible, and cost-effective alternative to traditional air travel and hotel stays. Surveys indicate a significant increase in Americans planning RV trips, suggesting that the camping boom has enduring appeal. This positions RV parks as a relatively recession-resilient sector within hospitality, as budget-conscious travelers often opt for campgrounds during economic uncertainties [1].

•Housing Affordability and Alternative Living: The escalating cost of housing in many regions has prompted some individuals and families to consider RVs and campgrounds as an affordable living solution. A segment of RV park users now includes long-term or full-time residents, contributing a stable, year-round income stream for parks. This demand for affordable and flexible housing options is likely to remain a significant factor, particularly in areas with high real estate costs [1].

In summary, the RV park sector is characterized by healthy demand growth against a backdrop of tight supply. This environment is conducive to strong occupancy rates and pricing power for RV park operators through 2025–2030. Investors focusing on operational efficiency, strategic capital deployment, and targeting high-demand submarkets are well-positioned for success [1].

Factors for Profitable RV Park Investments

To identify the most profitable states for RV park investments, it’s essential to consider several key factors [2]:

•Tourism Growth: States with high inbound tourism, particularly those known for outdoor activities, are ideal for RV park investments. A robust tourism sector ensures a steady flow of potential visitors to RV parks.

•RV Ownership Rates: Areas with higher concentrations of RV owners naturally generate more demand for RV accommodations, leading to higher park occupancy rates.

•Economic Stability: States with stable and growing economies are more likely to sustain strong tourism and recreational spending, providing a reliable market for RV park services.

•Seasonal Demand: Regions that experience mild or year-round favorable weather conditions can ensure consistent visitor flow throughout the year, maximizing revenue potential and reducing seasonal fluctuations.

Top States for RV Park Investments in 2025

Based on the factors outlined above, several states emerge as prime locations for RV park investments in 2025 [2]:

Florida

Florida consistently ranks as a top destination for RV enthusiasts, primarily due to its warm climate and an abundance of attractions. Popular spots such as the Florida Keys, Orlando, and the Gulf Coast beaches draw millions of visitors annually. This high tourist footfall, combined with a large population of

snowbirds (seasonal residents) who prefer RV living during the winter months, creates strong rental demand, especially in areas near beaches and theme parks. Florida’s proactive approach to new RV park construction also indicates a favorable environment for investors [1, 2].

Texas

Texas offers a diverse range of attractions, from the scenic Hill Country to the vast expanse of Big Bend National Park. Its expansive land and welcoming business environment make it an attractive state for RV park developments. The growing population of RV owners in Texas, coupled with affordable land costs compared to other states, presents significant opportunities. High demand for RV accommodations is further fueled by numerous outdoor festivals, rodeos, and nature tourism activities throughout the state [2].

Arizona

Arizona is another highly sought-after location for RV travelers, particularly retirees seeking its sunny weather and iconic landmarks like the Grand Canyon. The state boasts a high percentage of RV-friendly destinations and experiences steady demand from both snowbirds and retirees. Investors in Arizona have opportunities to cater to the luxury RV market, as there is a growing demand for upscale amenities and premium services [2].

California

California’s breathtaking scenic landscapes and iconic attractions make it a perennial favorite among RV enthusiasts. While the cost of land in California can be higher than in other states, the potential return on investment can be substantial, particularly in areas near popular tourist destinations such as Yosemite and Joshua Tree National Parks. The state benefits from a large base of in-state RV travelers and a growing demand for eco-conscious and luxury RV parks [2].

Tennessee

Tennessee is rapidly emerging as a desirable state for RV park investments, thanks to its vibrant music scene in cities like Nashville and the picturesque beauty of the Great Smoky Mountains National Park. These attractions drive tourism throughout the year, contributing to a rapidly growing tourism sector. Tennessee also offers more affordable property prices compared to many other states, making it an ideal location for investors looking to develop family-friendly and nature-focused RV parks [2].

Conclusion

Investing in RV parks presents a compelling opportunity within the real estate market, driven by sustained demand and limited supply. The best states for RV park investments in 2025—including Florida, Texas, Arizona, California, and Tennessee—offer a unique combination of strong tourism appeal, favorable economic conditions, and high RV ownership rates. By carefully considering these factors and understanding the evolving market trends, investors can strategically position themselves to capitalize on the growing popularity of the RV lifestyle and achieve significant returns.