Bridging the RV Park Supply Gap in the US: How Limited Development and Surging Demand Are Impacting Occupancies and RV Park Investment
- Viola
- 3 days ago
- 16 min read
Excerpt: RV park investment opportunities in the US are heating up as surging demand for campgrounds collides with a limited supply of new parks. Post-pandemic travel trends have younger generations flocking to RV campsites, driving up occupancy rates and revenue. Yet zoning hurdles, costly land, and slow development are constraining new supply – creating a supply gap that has occupancies near capacity and investors eyeing the sector’s robust profit margins.
RV Park Investment Outlook Amid Surging Demand and Limited Supply
After a boom in domestic travel, RV parks and campgrounds in the US have witnessed unprecedented demand growth coupled with tight supply. Industry revenue surged at an 8.3% annual rate over the past five years to reach $10.9 billion in 2025. This growth far outpaced the modest increase in new campgrounds, indicating that much of the demand has been absorbed by existing parks. Many facilities are reporting elevated occupancy rates, especially during peak seasons, as Americans embrace camping and RV travel in record numbers. On a national basis, average occupancy now hovers around 60–70% of capacity annually, with popular destinations often fully booked (near 100% occupancy) during summer peaks.
However, development of new RV parks has not kept up, leading to a supply-demand imbalance. Most campgrounds in operation today are decades old, and limited new supply in recent years has kept occupancy and pricing power high. This supply gap, fueled by surging demand, is driving strong interest in RV park investments – as existing parks enjoy high utilization and new projects face less competition, investors see potential for robust returns.
Constrained Supply: Zoning, Permitting, and Land Cost Hurdles
Several factors have constrained the expansion of RV park supply in the US. Zoning and permitting hurdles are chief among them – acquiring the necessary approvals for a new campground can be costly and time-consuming for developers. Local zoning regulations often limit where RV parks can be located and how large they can be, which curbs the pace of new development. Even when a suitable site is found, lengthy permitting processes and community opposition can slow down groundbreaking. These regulatory hurdles effectively raise the barrier to entry on the front end, even though ongoing operational barriers are relatively low once a park is up and running.
High land costs and scarcity of prime locations also pose challenges. Desirable campground sites – for example, scenic areas near national parks or lakes – are finite and often expensive to acquire. There are only a fixed number of prime destinations like national parks, and most already have established campsites nearby. A new entrant must purchase a significant plot of land in a location attractive to campers, which can be difficult and expensive to secure. Particularly in hotspot regions, suitable large parcels near tourist attractions or with ideal climate conditions are both rare and pricey. This means many would-be developers either settle for less-trafficked areas or abandon projects due to unfavorable economics.
Beyond land acquisition, infrastructure costs can further deter new park development. Building out utilities (water, sewer, electricity), access roads, and amenities on raw land requires significant capital. If zoning limits the number of RV sites or the density of the park, it can be hard to achieve economies of scale to justify these upfront costs. The result is that relatively few new RV parks come online each year, even though demand is growing. In fact, the call for new campsites is growing loud in many regions, especially in rural areas outside cities where urban residents seek nature getaways. Bridging this supply gap has proven difficult due to the combination of regulatory friction and high development costs.
Shifting Demand Demographics Post-COVID: From Gen Z to Baby Boomers
On the demand side, the profile of campers and RV travelers has been shifting – a trend accelerated by the COVID-19 pandemic. Younger generations are now a driving force in the campground industry. Generation Z (born 1997–2012) has emerged as a crucial demographic for RV parks, as the oldest Gen Zers enter their mid-20s and begin planning their own trips. In fact, about one-quarter of all campers are from Generation Z, according to recent industry surveys. With generally smaller budgets, these young adults see camping and RV trips as affordable vacation options, especially compared to costlier hotel or resort travel. Peer-to-peer RV rental platforms (like Outdoorsy) have further lowered the barrier for youth to try the RV lifestyle, since they can rent vehicles instead of buying. Gen Z now accounts for roughly 22% of U.S. campground revenue – about $2.4 billion in 2025 – a share that is expected to grow as more of this cohort reaches adulthood.
At the same time, other age groups are shifting their travel habits. Millennials (born 1981–1996), now in their late 20s to 40s, were a mainstay of the camping market but are beginning to favor more upscale travel as their incomes rise. This group’s share of RV park revenue fell from over one-third in 2020 to about one-quarter in 2025 as higher disposable incomes enabled them to opt for pricier vacations. Many Millennials who enjoyed camping in their 20s have “traded up” to hotels or vacation rentals in their 30s, contributing to a slight normalization of campground demographics after the pandemic spike of young campers. Generation X (born 1965–1980), typically in peak earning years, also tends to seek more comfort. Gen X travelers can be enticed to camp only if higher-end amenities are available – accordingly, parks with deluxe facilities have the best chance of attracting this group. Gen X still represents the single largest segment of campground revenue at about 31% (see Table 1), but their share has declined as younger campers flood in and older campers remain steady.
Baby Boomers (born 1946–1964) and older generations continue to be an important market for RV parks as well. Many Boomers are now retired or semi-retired, giving them more leisure time to travel by RV. On fixed incomes, they often favor camping and road trips as a budget-friendly way to vacation. This segment contributes about 21% of industry revenue (nearly $2.3 billion in 2025). Boomers’ presence at campgrounds actually dipped during the height of COVID-19 (as older individuals were more cautious about travel), but older campers have since returned, bringing demographics back toward historical norms. Looking ahead, the industry does face a demographic challenge: as Boomers continue to age into their late 70s and 80s, some will drop out of the camping market due to health or mobility issues. The torch is being passed to younger generations – and so far, Gen Z and Millennials are picking it up enthusiastically, offsetting the gradual decline in senior campers.
To summarize the generational demand shifts, Table 1 provides a snapshot of campground revenue by generation:
Table 1: U.S. RV Park Industry Revenue by Generation (2025)
Generation | 2025 Revenue (US$ billion) | Share of Industry Revenue |
Generation X (1965–80) | 3.4 | 31% |
Millennials (1981–96) | 2.8 | 26% |
Generation Z (1997–2012) | 2.4 | 22% |
Baby Boomers & Older (≤1964) | 2.3 | 21% |
Source: 2025 IBISWorld Campgrounds & RV Parks in the US Report.
The growing influence of Gen Z campers and the sustained participation of Boomers illustrate a broadening customer base for RV parks. Notably, the pandemic drew in a wave of first-time campers from more diverse backgrounds, including many urban and minority youth, due to the appeal of outdoor, distanced recreation. While some of those trends have normalized, the overall effect is that camping is no longer just the realm of retirees – it’s now a mainstream option for vacation across multiple generations. This bodes well for long-term demand. A wider demographic mix – from young adventurers and remote-working “digital nomads” to budget-conscious families and retirees – is filling campsites year-round. Younger campers’ enthusiasm, coupled with Boomers’ leisure time, has kept occupancy rates high even as travel patterns evolve.
Financial Performance: Revenue Growth, Profit Margins, and Occupancy Trends
The financial performance of the RV park industry has strengthened considerably in recent years, reflecting the demand surge. As noted, industry revenue climbed to $10.9 billion in 2025, exceeding pre-pandemic levels. Even adjusting for the anomalous spike in 2020 (when camping saw a unique boost), revenues are firmly above trend. Looking forward, forecasts predict continued growth – albeit at a more modest pace – with revenue projected to rise roughly 1.9% annually to around $11.9 billion over the next five years. This steady growth outlook is underpinned by solid fundamentals: a larger camping customer base, rising consumer incomes, and an enduring affinity for outdoor recreation.
Crucially for investors, profitability has improved alongside revenue. Average industry profit margins reached about 11.4% in 2025, up approximately 3.4 percentage points from 2020. Strong demand allowed many park operators to increase rates and fees, while operational costs (labor, maintenance) grew more slowly, boosting margins. On a per-business basis, annual profit now averages around $75,000 per campground, though of course larger parks and premium resorts can earn much more. It’s worth noting that larger corporate park owners tend to achieve higher profit margins than single-site “mom-and-pop” operators. Bigger companies can leverage economies of scale, sophisticated revenue management (dynamic pricing during peak seasons), and cost efficiencies. Still, even small campground proprietors have enjoyed margin uplift due to the high occupancy and the ability to upsell amenities.
Occupancy rates are a key driver behind these financial metrics. Simply put, more campers in sites translate to higher income from site fees, as well as ancillary sales (like campground stores, equipment rentals, or food and beverages). Industry data shows that when occupancy rates rise, parks benefit from additional spending per guest on items like food and non-alcoholic beverages, boosting overall revenue. Over the past decade, nationwide RV park occupancy has trended upward, thanks to the growing popularity of RV travel across age groups. The pandemic in 2020–2021 pushed occupancies to record highs in many parks, with reports of fully booked sites for much of the 2021 peak season. There was a slight dip in 2023 as travel patterns normalized and some COVID-era campers took other trips, but early indicators show a rebound in bookings for 2024. Overall, the occupancy outlook remains strong, which underpins confidence in the financial performance of the sector. High occupancy not only drives current revenues but also gives park owners pricing power – many have implemented rate increases or minimum stay requirements during peak periods given the excess demand.
From an investor’s perspective, these financial trends are attractive. Healthy profit margins in the low double-digits and rising top-line growth suggest that well-run RV parks can generate solid returns. Indeed, capitalization rates (cap rates) for RV parks often range around 7%–12%, which is higher yield than many traditional real estate assets. The combination of strong consumer demand, limited new supply, and improving revenues/profits has positioned the RV park industry as a compelling niche within real estate. The caveat is that operations can be unique – seasonal fluctuations and hands-on management requirements differ from, say, apartment buildings – but the financial trajectory is positive. As long as occupancies remain elevated and supply lagging, the financial performance is expected to stay robust.
Geographic Hotspots: California, Texas, Florida Lead the Way
Geography plays a significant role in the RV park sector’s dynamics. Certain states and regions have a higher concentration of campgrounds and stronger demand drivers than others. Generally, places with abundant natural attractions or favorable weather see the highest occupancy and revenue. Waterfront sites and scenic vistas are top draws for campers, and travelers are often willing to pay a premium for parks located near beaches, lakes, or panoramic national park views. Moreover, temperate climates that allow a longer camping season attract more tourists, as stable weather supports more consistent occupancy and reduces off-season downtime.
In terms of market size, California stands out as the leading state for campgrounds and RV parks. California boasts nine national parks (the most of any state) along with extremely varied landscapes – from deserts and mountains to coastline and forests – making it a magnet for outdoor recreation. Not surprisingly, California has the highest number of RV park establishments of any state and generates roughly 10% of total U.S. industry revenue (about $1.08 billion). The state’s popularity for camping is amplified by its large population (many local campers) and tourism appeal to out-of-state RV travelers.
Other states with large campground industries include Texas and Florida, which along with California form the top three by revenue. Texas accounts for about 7.1% of U.S. RV park establishments and around 6.5% of industry revenue. Texas benefits from a big population of RV owners and diverse attractions (from Gulf Coast beaches to hill country and desert parks). However, the extremely hot summers in parts of Texas can be a deterrent during peak heat – parks without ample shade or cooling amenities may see lulls in the hottest months. Florida, on the other hand, offers a warm climate that attracts year-round campers, especially snowbirds in winter. Florida represents roughly 6.0% of industry revenue with popular RV destinations along its coasts and central Florida’s theme-park adjacent campgrounds. The mild winters and beach access keep Florida’s parks busy outside the typical summer season, giving it a demand profile that complements the northern states.
Beyond these three, other geographic hotspots include states rich in natural parks and leisure travelers. For example, New York (with the Adirondacks and Catskills) and Pennsylvania (with its state forests and proximity to Northeast urban centers) each hold about 5% of industry revenue. Arizona is another notable market – its warm winters and iconic landscapes (Grand Canyon, Sedona) draw many RVers, especially in cooler months, contributing about 3.3% of industry revenue. Colorado and Washington also punch above their population weight in terms of campgrounds, thanks to the Rocky Mountains and Pacific Northwest scenery. In contrast, some populous states like Illinois or New Jersey have relatively few RV parks (their shares of industry activity lag far behind their share of U.S. population), due to less public land or less year-round camping appeal.
It’s useful to note the pattern: states in the Mountain West and Sunbelt tend to have the highest concentration of RV parks relative to their population. The Rocky Mountain region has a particularly high share of campgrounds vs. population, reflecting the draw of national parks and open lands in states like Montana, Wyoming, and Idaho. Meanwhile, areas with harsh climates see fewer parks despite natural beauty – for instance, Alaska has almost as many national parks as California but only about one-quarter the number of campgrounds, because its short summer season limits viable operations. On the opposite end, extremely hot and humid regions can also struggle: states like Mississippi or Alabama have fewer destination campgrounds, as oppressive summer weather makes them less attractive compared to milder regions unless a unique attraction is present.
For investors and developers, these geographic trends highlight where demand is strongest and where new projects might be most viable. Prime opportunities often lie in areas that combine natural attractions with accessibility. Parks near major national parks (think Utah or California) or near water and temperate climates (Florida, Carolinas, Pacific Northwest) generally see high occupancy. Additionally, proximity to urban centers matters: campers often travel by car or RV from home, so campgrounds within a few hours’ drive of large cities are perennially popular. A balance of “close to nature, but not too far from home” is ideal. Locations that hit that sweet spot – for example, the outskirts of metro areas like Denver, Phoenix, or Atlanta – are seeing rising demand. On the flip side, remote areas with no nearby population and no major attraction struggle to draw enough visitors. In essence, geography dictates both the current hotspots and the whitespace for future RV park development in the US.
Development Trends: Luxury Amenities, Glamping, and Tech Adoption
Facing intensifying competition for campers’ dollars (including competition from other travel options), RV park operators are upscaling and innovating. A clear trend in recent years is the rise of luxury amenities and “glamping” experiences at campgrounds. As more affluent travelers (Gen X, young professionals, etc.) consider camping, parks have responded by adding high-end facilities to differentiate themselves from basic tent sites. It’s not uncommon now to find campgrounds featuring resort-style amenities such as swimming pools, hot tubs or spas, fitness centers, and even tennis courts. Many parks have built modern cabin rentals, yurts, or upscale safari tents to appeal to those who want a “cozier” experience than a standard tent. These glamping accommodations often come furnished with beds, electricity, and stylish décor, blurring the line between camping and boutique hotel stays. By offering unique upscale lodgings, park owners can attract guests who might otherwise opt for a hotel – capturing a share of the luxury travel market within a campground setting.
Another area of development is technology adoption to enhance guest experience and operational efficiency. For today’s campers, especially younger ones and remote workers, reliable high-speed Wi-Fi is now an expected amenity at many RV parks. Parks that invest in good internet infrastructure find it easier to lure the growing segment of travelers who mix work with leisure (“workcations”). In fact, over one-third of campers report working remotely during their trips, and roughly half say that Wi-Fi availability is important when selecting a campground. To cater to this, forward-thinking campgrounds are not only adding Wi-Fi, but also creating dedicated co-working spaces or quiet zones for those logging in from the road.
Beyond Wi-Fi, campground operators are embracing online booking platforms and mobile apps. The ease of finding and reserving campsites via apps (including third-party platforms and proprietary park apps) has become crucial, particularly as the demographic of campers skews younger and more tech-savvy. This digital shift also opens up new marketing channels – parks can engage guests with loyalty programs, push notifications about on-site events, or upsell services (like equipment rentals or guided tours) through apps. Peer-to-peer platforms have also become part of the ecosystem: just as RV rental apps allow campers without RVs to rent one easily, site-sharing platforms help park owners advertise available spots and maximize occupancy.
Furthermore, environmental and sustainable features are trending in new park developments. Many campers appreciate eco-friendly practices, so new RV parks are incorporating solar lighting, EV charging stations for electric RVs, and sustainable waste management systems as part of their design. Some upscale RV resorts are also integrating with master-planned communities, offering long-term pads for seasonal residents (snowbirds) with luxury clubhouses, organized activities, and even concierge services. The overall theme is professionalization and enhancement of the camping experience – today’s best-in-class RV parks are a far cry from the rustic campgrounds of the past. They are more akin to outdoor resorts, a shift that not only attracts a wider customer base but also supports higher daily rates and revenues to justify investment.
Competitive Landscape and Barriers to Entry
Despite the supply constraints mentioned earlier, the campgrounds and RV parks industry has relatively low formal barriers to entry, resulting in a highly fragmented competitive landscape. Unlike some industries, running a campground does not require any specialized licenses or complex regulatory compliance beyond standard health, safety, and environmental regulations. Once the land is secured and permits obtained, operating an RV park is not legally onerous, and ongoing costs mainly involve maintenance, utilities, and labor. This means that, at least in theory, small entrepreneurs can enter the market by opening a single campground. Indeed, there are over 16,000 campground businesses in the US (mostly small, independent owners), and the top four companies combined control only about 11% of the market. This extreme fragmentation is evidence of the low concentration – no single operator dominates the industry. Most competitors are mom-and-pop establishments or regional chains, each with a tiny fraction of national market share.
However, “low barriers” does not mean “no barriers.” The initial obstacles of zoning, permitting, and land acquisition still act as significant barriers to entry in practice for many potential competitors. These hurdles can discourage new, undercapitalized entrants or delay their projects by years, effectively keeping the number of new players low relative to demand growth. Even though anyone can technically try to open a campground, success requires navigating local land-use approvals and having the capital to invest in property and infrastructure. As discussed, these factors have limited the pool of newcomers and thus limited over-saturation in prime markets.
Competitive forces within the industry are shaped by these dynamics. Since the market is fragmented and most campgrounds are small, price competition is tempered by the fact that many parks operate in distinct local niches. A campground near Yosemite, for instance, is not directly competing with one near the Florida Keys – their markets are geographically separate. This gives operators some pricing power during high-demand periods, especially if they offer unique location benefits or superior amenities. On the other hand, customers do have alternatives: they can choose other vacation accommodations (hotels, Airbnb rentals) or other destinations if prices rise too high. This keeps campground pricing in check to some degree (competition from substitutes like hotels is a moderate force in the industry). To remain competitive, park owners focus on differentiators such as cleanliness, recreational facilities, and family-friendly or pet-friendly policies to build loyalty.
Consolidation trends are gradually emerging as a competitive factor. In recent years, a few larger companies (including real estate investment trusts and national franchises like Kampgrounds of America) have been acquiring parks in strategic locations. This has led to modest increases in industry concentration – for example, the largest park owners have been expanding their portfolios and upgrading properties, often leveraging easier access to credit to finance these expansions. Still, given the sheer number of parks nationwide, even the biggest player holds just about a 4% market share. So while consolidation is increasing, the industry remains far from concentrated. The low-to-moderate barriers to entry and the availability of independent parks to purchase mean new players (or existing ones expanding) can still enter local markets relatively easily, keeping competition alive. In fact, the ease of small-scale entry (one can start a modest campground on a plot of land) has historically kept the market open and competitive, with many owners coming and going. This churn makes it hard for any one company to corner the market.
From an investor viewpoint, the competitive landscape implies two things: opportunity and selectivity. The opportunity lies in the fragmentation – with so many undercapitalized independent parks, there is room for roll-up strategies or value-add acquisitions. A savvy investor can acquire a mom-and-pop campground and improve it (add hookups, add glamping tents, modernize facilities) to quickly increase revenue and yields. Some investment groups are doing exactly this, banking on the supply gap and demand growth to realize upside. On the flip side, the necessity of navigating local regulations and the localized nature of campground markets mean that success isn’t guaranteed simply by entering the industry. Barriers to entry may be officially low, but finding the right location and obtaining approvals remain critical challenges that require expertise and patience. Those are the gating factors that have kept new development limited – and conversely, they protect existing players from being swamped by a wave of new competitors.
In summary, the RV park industry in the US is at an intriguing juncture. Demand is surging across generational lines, occupancies are high, and revenues are growing, making the sector increasingly attractive to real estate investors. Yet, the very characteristics that make it attractive – limited new development due to land, zoning, and cost constraints – also mean that investors must navigate a thicket of challenges to create new supply or expand existing sites. Geographic hotspots like California, Texas, and Florida continue to thrive, and opportunities are ripe in areas where outdoor tourism flourishes. Meanwhile, campground operators are elevating the camping experience with luxury amenities and technology, capturing a broader customer base and higher spending per guest. For investors and developers, bridging the RV park supply gap will require strategic site selection, community engagement to ease permitting, and creative offerings to stand out in a fragmented market. Those who can surmount the entry barriers and tap into the robust demand are poised to benefit from healthy occupancies, solid profit margins, and the enduring American love affair with the open road and the great outdoors.
Sources:
IBISWorld Industry Report 72121: Campgrounds & RV Parks in the US (May 2025) and others.
Analytics.Loan U.S. RV Park Industry Trends & Analysis (2025).
Additional industry data from ARVC and KOA surveys as cited in context.
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