The demand for new and used RVs has been insanely high the past couple of years. More people have started RVing (some in response to the desire to travel amid the Covid pandemic), and the supply of RVs got disrupted due to factories shutting down and delays in shipping. These delays caused a shortage of RVs in the middle of the RV industry’s largest boom in sales.
But will the demand for RVs ever go back down?
RV Industry Association reports that February 2022 saw an 11.3% increase in sales over February 2021. It seems that RV manufacturers keep beating the previous month’s record-setting number. Makers can’t keep up with demand, and many have order backlogs.
Are RV Sales Starting to Slow Down?
If Winnebago’s second-quarter fiscal report is any indication, RV sales are not slowing down any time soon. The company has yet to put a dent in its massive backlog.
Winnebago saw its backlog increase in its towable and motor home RVs. This would indicate that shoppers are still happily paying deposits on rigs that the company hasn’t even started manufacturing yet.
Will Demand for RVs Ever Go Back Down?
The demand for RVs has been growing rather constantly for the past two years. Everyone knows that the rush for RVs won’t continue.
However, it’s hard to tell when it will decrease. The massive increase in gas and diesel prices could scare many potential shoppers from jumping into RVing this year.
The best indicator for it slowing down will be as manufacturers chip away at the backlog of RVs they have amassed. Empty dealership lots will slowly fill back up with inventory. The bursting bubble of demand could be on the horizon.
Why Is There a Shortage of RVs?
The RV industry unexpectedly had a huge increase in demand for RVs. Many people sought alternative ways to get out and adventure amid a chaotic couple of years of travel restrictions. RVs became the go-to option for many families looking to continue adventures during uncertain times.
At the same time, RV manufacturers had to battle the global supply crisis and parts shortages. We saw many major players in the RV industry purchase smaller companies to help prevent future issues and minimize the chances of future disruption.
Parts shortages kept many RVs from being completed during the global supply crisis.
How Big Is the US RV Market?
The RV Industry Association’s 2019 study indicated that the United States RV market impacts the economy by $114 billion and provides 600,000 jobs.
RV sales and services account for $20 billion in revenue and $26 billion in RV campgrounds and travel expenses. They also state that 25 million Americans go RVing each year.
The national RV market is more than just dollars and cents. These dollars represent billions of memories created by families and individuals looking to adventure. You can’t put a price on these types of experiences and the lessons taught to the next generation.
These Factors Affect the RV Demand
One of the leading factors affecting the demand for RVs is the costs of ownership. RV prices are off the charts. Many that put off buying an RV last year find that the newer models cost thousands of dollars more than the previous year.
However, it’s not just the price of acquiring the RV that has risen. Costs of fuel and campsite fees have also increased. Fuel costs fluctuate constantly — that’s nothing new. However, the rising cost of camping reservations is something not many expect to see.
It’s a simple game of supply and demand for most campgrounds. These places now reach capacity on more than just holiday weekends. With more people using campgrounds, their costs go up too. This makes RVing less appealing and causes the demand to slow down.
Is the RV Craze Here to Stay?
The RV craze is here but likely not to stay. Eventually, the market will tap out, and the demand will decrease.
However, with billions of dollars in backlogged orders, it’s not looking like the new market will slow anytime soon.
Additionally, with the increase in remote jobs, many people may continue seeking a nomadic lifestyle. And the options for online school may make the RV craze something more families want to explore.
In short, now is an excellent time to sell your RV.
RV’s are a hot commodity right now and will probably continue to be for the foreseeable future. But nothing is forever. If you want to sell your RV, there’s never been a better time than now. Let us help you sell it fast and for the best price.