The growing appeal of the RV lifestyle to a broader swath of the population, increased demand for a more upscale camping experience, and continued strength in operations point to solid fundamentals for those REITs that own RV resorts, according to Nareit.
Ipsos, a global market research firm that surveys RV customer characteristics for the RV Industry Association, reports that significant owner demographic changes have occurred since 2021. During that time period, RV owners have trended younger — a median age of 49 versus 53 — with a larger percentage of owners now earning more than $100,000 a year.
REITs Sun Communities, Inc. (NYSE: SUI) and Equity LifeStyle Properties, Inc. (NYSE: ELS) lease mobile home (MH) and RV sites to tenants and provide utility services for a range of needs, alongside access to resort-style amenities. In addition to their neighborhoods offering MH’s available for lease or to purchase, these REITs also aim to provide affordable vacation and new or second-home alternatives to families in desirable resort and retirement areas.
The RV divisions contribute about 30% percent of company rental revenue. All told, Equity LifeStyle owns more than 90,000 RV sites in more than 200 campgrounds in the United States and Canada, while Sun Communities, through its Sun Outdoors brand, owns 57,000 RV sites in 166 campgrounds in the U.S. Sun Communities also owns U.K. holiday parks in a separate division.
