By Mark Sherman
Despite economic fluctuations in 2023-2024, the need for toy storage has grown and remains on the rise. This trend is attributed to a shift among Americans opting for local leisure travel options over expensive overseas and cross-country airplane trips. RVing and boating, considered more cost-effective forms of recreation, have gained prominence as preferable travel choices during economic downturns.
As we set sail into the promising waters of 2024, the boat and RV storage industry continues to chart a course marked by evolving trends and notable shifts. Let’s explore the anticipated developments shaping this niche sector in the coming year.
Increasing Institutional Presence
Once dominated by small-scale owners, the boat and RV storage landscape is experiencing a notable transformation, with more institutional players entering the arena. Fueled by favorable investment conditions, these larger entities are poised to impact the market significantly.
Financial Performance
According to Yardi Breeze, the financial outlook for boat and RV storage properties remains positive, with an expected continuation of robust sales. The sector’s performance in 2022, marked by $556.1 million in sales and a substantial year-over-year increase of 46.4%, sets a precedent for sustained financial growth.
Escalating Property Prices
The trend of rising property prices, particularly in terms of the average price per acre for boat and RV storage properties, is anticipated to persist. In 2022, the average price per acre soared to $661,000, reflecting a significant 53.6% year-over-year increase. Source: Yardi Breeze
Demographic Shifts in Ownership
The demographic landscape of boat and RV ownership is undergoing a notable shift. Traditionally associated with older Americans, the industry is witnessing an influx of younger enthusiasts. Millennials and Gen Z are increasingly participating in these recreational activities, leading to a diversification of ownership demographics.
Continued Growth in RV Ownership
The Recreational Vehicle Industry Association (RVIA) reports a consistent upward trajectory in RV ownership. Over the last two decades, ownership has surged by more than 62%, reaching a record 11.2 million households. The industry shows clear signs of sustained growth, with 31% of respondents being first-time owners.
Broader Appeal Among Millennials and Gen Z
The survey by RVIA highlights a significant trend—the increasing appeal of RVs among younger demographics. The study reveals that 84% of individuals aged 18 to 34 plan to purchase another RV, with 78% expressing a preference for new models. This shift in preferences underscores the broader resonance of RV culture.
S3 Partners’ 2024 Development Advice
For those interested in developing RV and boat storage properties in 2024, the question often arises as to whether now, with rising interest rates, is the right time to invest. In recent months, S3 would describe the toy storage development landscape as being in a “soft-pause.” This means development and investment are still happening, but not at the quick rate we witnessed in 2022 and early 2023. However, we do not recommend “stepping on the brakes,” but we di remind developers that the process should be strategic and thoughtfully planned.
A rebound to the sector’s prosperous days is anticipated with the stabilization of interest rates and the restoration of consumer confidence—events that are deemed inevitable. This resurgence is expected to bring back profitability, even in oversaturated markets.
As we embark on a new year, the boat and RV storage sector is poised for continued growth and transformation. The interplay of financial dynamics, demographic shifts and evolving consumer preferences promises an exciting journey ahead for industry players and enthusiasts alike. Stay tuned as we navigate these trends in the ever-evolving boat and RV storage world.
Mark’s extensive background includes management and senior leadership positions in the aviation, real estate, and communications industries. He prioritizes fostering solid relationships with S3 clients and partners.Currently residing in the Piedmont Triad region of North Carolina, Mark brings his wealth of experience and dedication to drive success for S3 Partners, where he serves as Director Operation.
S3 Partners has more than 25 years of diversified experience in managing storage facility design, engineering and construction, earning distinction as a trusted leader in the industry. S3 specializes in providing custom solutions tailored to each client’s unique needs, offering expertise in multi-unit single-stora, multi-story, conversions and large-scale urban-type self-storage facilities. Offering a comprehensive suite of consulting and management services empowers clients at every stage of the development process, from inception to completion. With a focus on mitigating potential pitfalls and maintaining budgets, S3 Partners ensures that projects progress smoothly and successfully. Learn more.
Stake Your Claim in RV and Boat Storage at the TSN Workshop, April 5, in Las Vegas
Interested in accelerating your knowledge of the RV and boat storage industry. The Toy Storage Nation Executive RV and Boat Storage Workshop is less than a month away. Our one day accelerated educational event will set you up for success in this booming industry.
