Demand exceeding supply for RVs

Jul 20th, 2022 | By | Category: Adventures

In the last few years, the recreational vehicle industry has seen millennials living in RVs, retirees swinging to the RV life, and the age 35-to-55-years-old crowd taking a larger market share than the typical 60-plus buyers.

According to the Recreational Vehikcle Industry Association (RVIA), 98 percent of RVs sold are manufactured in the United States. The highest number of RV sales by state are in Indiana ($6.8 billion), California ($2.2 billion), and Texas ($1.8 billion).

With all that as a backdrop, anyone in the market the market for a 2022 RV shouldn’t expect to get a deal. As long as the demand exceeds the supply, the price will keep going up. According to Nomadic News, manufacturers are increasing prices for dealers, which makes dealers less likely to cut buyers a deal.

Before the camper-buying frenzy started, purchasers could expect to take anywhere from 20 percent to 30 percent off the MSRP. However, this is increasingly rare as demand grows and supply shrinks, causing the prices for new RVs to increase. When the 2021 Airstream Flying Clouds hit the market, they started at $78,900 in 2022, the price is $85,300, just over an 8 percent increase.

Airstream isn’t alone in raising prices for new models. Grand Design is raising prices by 6 to 8 percent. Winnebago is raising prices by 7 percent. With RVIA predicting continued growth, this likely isn’t the last increase.

There are some factors that dealerships and manufacturers can’t control. Global supply chains have gotten disrupted, making manufacturing and assembling RVs difficult. Manufacturers have had to change aspects like the color of siding, television models, and even air conditioners to keep production rolling as much as possible.

With supply chain issues and high demand, it’s only a matter of time before there’s a massive backlog on new RVs. Many first-time RVers are looking for the security and assurance that warranties can provide, but they need to be patient if they want a new model, according to industry analysts.

Last Nove

Couple looking at digital tablet near campfire with their motorhome in the background

mber, RVIA reported the popularity of RVing was showing no sign of slowing down, with a new survey revealing that 72 million Americans plan on taking an RV trip in the next year in an RV they rent, own, or borrow. That number was up from 61 million in 2020. A new survey showed that interest in exploring the outdoors and traveling more with children and family were the top reasons for people planning to go RVing.

“While flexibility through remote work and school continues to be one of the top reasons for RV travel, this new data shows that interest in exploring the outdoors is by far the number one reason for people wanting to take an RV trip,” said Bill Baker, RVIA’s senior director of membership and. “There has really been a shift in people’s priorities over the past year and their desire to get outside and experience the great outdoors, so it makes sense that more people are turning to RVs.”

RV owners overwhelmingly said in recent surveys that their RVs make it easier to take more frequent weekend getaways or mini-vacations that accommodate busy family schedules.

  • More than 11 percent of U.S. households headed by 35-to-54-year-olds own an RV, exceeding the 9 percent ownership rates of adults 55 and over.