Why do campgrounds feel so misunderstood as a real estate asset?

Question

Most investors I talk to are chasing the same crowded plays like multifamily, storage, or short-term rentals. Meanwhile, I’ve been spending a lot of time learning about campgrounds and RV parks, and it’s completely changed how I look at real estate.

What stands out to me is that outdoor travel doesn’t feel like a trend anymore. It’s a lifestyle shift. People want nature, experiences, and flexibility, and campgrounds sit right at the intersection of all three.

What also surprises me is how much upside seems to come from operations, not just market appreciation. Many parks were built decades ago and barely updated. Improving the guest experience, adding better amenities, or offering alternative accommodations like cabins or glamping can materially increase revenue without relying on cap rate compression.

I’m curious how others here think about this niche.
Do you see campgrounds as more of an operating business, or as real estate with unusually strong cash-flow levers?
And for anyone who’s invested in them, what were the biggest surprises once you owned one?

Matthew Paul · Answer

There are big players doing just that , buying up campgrounds and updating them big time . Along with that they are jacking up the prices so high they are scaring away the clientele . RV prices have dramatically increased as have tow vehicles .  Those same campgrounds are now sending emails offering specials . ( its not working too well )

And its not real estate investing , its running a small city . You need mechanics , electricians , grounds equipment , skid steers , backhoes , store personal , lifeguards , etc , etc . You have live in guys who stay in campers . you also have 24 hr time security  . And on the East coast you shut down for the season and have to find 1/3 to1/2 new employees the next season .

I havent owned one , but we camp 6 to 10 times a year , its fun . But would I want to own one ?   No way in hell .

Stuart Udis · Answer

I looked at a few LP opportunities in this space a few years back and spent time trying to understand the asset class more deeply. I never seriously considered owning one actively because it felt much more like an operating business than real estate.

My biggest takeaway was that location is the highest generating amenity. The best parks in true destination areas often aren’t being marketed for sale at all. What tends to come to market are secondary locations where the business plan is to add amenities to make the park more desirable. That may help, but I wasn’t confident it would reliably drive sustained occupancy on its own if the underlying location demand isn’t already strong.  Then there’s the liability aspect. You have transient guests, outdoor amenities, and more exposure to safety issues than a typical rental property.

And ultimately, it’s just management intensive. Compared to buying well situated real estate with high barriers of entry (even multifamily or single family) that’s new construction or fully renovated with modern systems, RV parks felt less passive and more operational.

I’m sure there are great operators doing very well in the space, but for me the risk adjusted returns didn’t stand out enough relative to other assets with higher barriers to entry and less day to day complexity.

Matthew Paul · Answer

@Bruce Woodruff Glad you had fun .  Campgrounds around me on the east coast are older . Lots of trees . Two of them even have their own bucket trucks and chippers for tree work . They can be profitable , but no way are they passive .  Especially after 7 pm when the adult beverages get started

Dillon Clark · Answer

@Stuart Udis

I think this is a really fair take, and I agree with a lot of it. RV parks and campgrounds are absolutely more of an operating business than pure real estate, especially early on. You’re not just buying a box and collecting rent. You’re buying land, demand, systems, and execution all at once.

Where I think the distinction matters is that investing is really just the entry point. If someone expects this to be passive from day one, it’s probably the wrong asset class. The heavy lift is upfront: site selection, zoning, infrastructure, layout, pricing, systems, and guest experience. If those boxes aren’t checked, no amount of added amenities will save a weak location or sloppy operations.

That said, once the business is run properly and stabilized, it starts behaving much more like an investment property. With the right plan and a competent manager in place, your role shifts to oversight, financial review, and deciding which upgrades or ancillary revenue streams actually move the needle. At that point, it’s far less about daily fires and more about capital allocation and optimization.

I think the disconnect comes when people underestimate the work required to get there. This isn’t passive real estate you stumble into. It’s for operators with a legit business plan who understand that the hard work up front is what creates the passive income later. Without that, the risk-adjusted returns don’t make sense.

Dillon Clark · Answer

@Matthew Paul

That’s a fair point, and I don’t really disagree with most of what you’re saying. A lot of people underestimate how operational these properties are, especially if they’re looking at them through a traditional real estate lens. Staffing, maintenance, seasonality, and guest management are all very real challenges, particularly on the East Coast where you shut down and basically have to rebuild the team every spring.

I also think you’re right about some of the bigger players. I’ve seen parks get bought, heavily upgraded, and priced to a point where the core camper just gets pushed out. Then demand softens and the discounts start showing up. That feels more like forcing a model than working with the customer base.

For me, the appeal is more in the smaller to mid-size parks and slower, phased growth. Still hands-on, still work, but not trying to run a massive resort or turn it into something it isn’t. Improving the experience without overbuilding or pricing ahead of demand.

I completely get why someone wouldn’t want to own one though. It’s definitely not passive, and it’s not for everyone. I just find it interesting that the same complexity that turns people off is also what keeps the space from getting as crowded as other asset classes.

Dillon Clark · Answer

@Bruce Woodruff

This is exactly what draws me to campgrounds. I grew up camping and being outdoors, so the idea of a place that’s part land, part business, part experience just clicks for me.

I’ve been a bricklayer for about 16 years, so I’m not afraid of hard work or getting my hands dirty. If anything, I actually prefer it that way. To me, this kind of investment is a partnership. The money only works for you if you’re willing to work for the money too, especially early on. That balance is kind of what makes it beautiful in my eyes.

I’m in the process of developing a campground from the ground up, and the more I research and dig into the space, the more it feels like the right fit for how I’m wired. It’s not passive on day one, and I’m okay with that. I like the idea that if you build it right, run it efficiently, and eventually put the right systems and people in place, it can turn into a strong investment without losing the soul of the place.

Honestly, I don’t think I’d feel like I was “working” at that point. It’s something I’d enjoy showing up for every day, and that’s a big part of why this asset class makes so much sense to me.

Bruce Woodruff · Answer

I had an eye-opening experience last fall as I toured Arizona in a 'rented' RV. My first time using an RV. As @Matthew Paul said, these RV parks are like a small city! Lots of moving parts to be sure, and must have an on-site maintenance person (or two) to keep everything running smoothly....but still not a huge issue since the spaces themselves just have electrical, water and sewer and those do not have a lot of need for frequent maintenance.

The trip was a 10 day adventure, so I got to see 9 different Parks, from Monument Valley to Sedona down to Tombstone.... Most were very well designed and maintained and had amenities out the wazoo. There were just a couple that were average, none were really terrible, but I read reviews about some of the bad ones, and there certainly are some.

You can certainly make some $$ with these....space rents were $50 - $70...and there were 100s of spaces in most of the good parks. So 100 x $60 = $6000 per night x 30 = $180,000 per month x 365 = $2,180,000 per yr

That's $2mil+ per year (mostly profit) for what is essentially just light maintenance on a few acres of land. Mow the grass, pick up trash, clean bathrooms, etc...

Might be one of the best REI vehicles out there......!

Dillon Clark · Answer