RV sales are picking up. That’s a good sign for the economy

Channel 3000 News/CNN ^ | June 16, 2024 | CNN Staff

[Diana in Wisconsin]

At this time of year, a reservation with Chill RV Rentals isn’t usually the easiest to come by.

The Los Angeles-based company’s 16-camper fleet is typically booked solid, with the RVs oftentimes reserved weeks in advance.

That’s just not the case this year, said Nika Shneyder, who started the recreational vehicle rental business with her father in 2016. Bookings are light; plus, the people who are traveling are taking shorter trips, she said.

“We’re definitely seeing demand for RV travel slowed down compared to previous years, and I don’t think it has to do with people coming out [the pandemic] and going on different kinds of trips,” Shneyder said. “I actually think it has a lot to do with people having less discretionary spending available.”

She added: “I think we’re going to pick up this summer, in July and August for sure; but historically speaking, we would have been busier by now.”

On the retail sales side, there are similar stories at play: Businesses are seeing softer, but improving, demand; consumers are showing some hesitancy but still are spending some; and industry members are exhibiting cautious, but growing, optimism.

The industry appears to be not only getting back into gear but also settling into a familiar groove: its role as an economic bellwether.

When consumer sentiment falters or the economy starts to teeter, RV sales follow suit, said Michael Hicks, an economics professor at Ball State University and director of Indiana University’s Center for Business and Economic Research.

RVs are typically large-dollar items for individuals and families, costing about $12,000 to $15,000 for a small, pop-up, tow-behind trailer, to some that run well north of $250,000 or more for a motorhome or luxury offering.

[Diana in Wisconsin]

BS headline as usual from CNN. Keep reading:

“People don’t make these large, luxury purchases unless they’re actually feeling better about the economy,” said Hicks, who follows the RV industry closely. “It’s so sensitive to interest rate changes, which often precede a downturn.”

RV shipments, a proxy for sales, are starting to pick back up after having bottomed out last year — an aftershock of a wild, pandemic-era upheaval.

So, if business is on the upswing — especially at a time when the dual forces of elevated inflation and high interest rates are serving as headwinds — that could bode well for the economy as a whole, he said.

Still, while that economic indicator doesn’t appear to be flashing red right now, it likely will take interest rates falling from their current 23-year highs before it turns a solid green.

[Diana in Wisconsin]

Additional data about RV living:

https://www.godownsize.com/rv-motorhome-statistics-numbers/

Why many more Americans will choose RVs as their homes:

https://www.rvtravel.com/reasons-to-live-in-an-rv-1042/

[for-q-clinton]

What they aren’t telling you is people no longer have a House or Apartment but instead live in their RV.

[null and void]

“People don’t make these large, luxury purchases unless they’re actually feeling better about the economy,” said Hicks, who follows the RV industry closely. “It’s so sensitive to interest rate changes, which often precede a downturn.”

People don’t make these large, purchases unless they’re worried about losing their homes and don't want to end up sleeping in a cardboard box under a bridge..

[srmanuel]

Perhaps, RV sales are up because want to be mobile with the ability to move at any time to a location that is safer, I had good friend that retired a few years before me, he and his wife bought a big RV and sold their house and traveled to a cooler location in the summer and warmer location in winter all in red states.

If you can’t afford two houses in different climates, the choice of an RV is a valid option for people who want options on their residence.

[blackdog]

Living out of your vehicle is the logical step for unaffordable housing, taxes, inflation, and job mobility. Just wait until the criminals begin tapping that market of victims......It won’t end well.

[foundedonpurpose]

Diana you cheese head. Miss leading headline.

[George from New England]

More like a vehicle to ‘bug out’ in what the 5h!t hits the fan

[blam]

My younger brother said that old people are moving into them in droves. He says, $500.00 a month for a rental space that includes all utilities and internet wifi...no yard work or other obligations. That's within reach for even people on only SS if the RV title is clear.
(I wonder about the $500.00 rental amount though.)

At 80 years old, I'm finding my 3 BR 2 bath with a one acre yard a bit of a burden.
(My lawn mower broke down friday.)

It's Always Something.

[moviefan8]

People are buying RVs so they can live in them. This is a huge problem where I live. The city can’t do anything about it unfortunately. :(

[rdcbn1]

Yup, those are not luxury vacation toys, they are people primary home

[goodnesswins]

We are on trailer trip right now...many RV places have a majority of spots taken by Permanent RV residents.

[moviefan8]

I saw a story on the news that people buy them and then rent them out for people to live in. They get as much as a $2,000 a month in San Francisco.

https://www.msn.com/en-us/money/realestate/san-francisco-residents-rent-rvs-to-avoid-being-unhoused/ar-BB1og1bd?ocid=BingNewsSearch

[Starboard]

“Yup, those are not luxury vacation toys, they are people primary home”

*************

Yep, and manufactured homes another option.

[John S Mosby]

What idiocy— so they can make time payments they never will
finish, go to repo, and in the meantime “live on the road”
“free” parking in Wally Worlds, or renting in RV parks.

What a disaster. One which obamaumao wanted and has gotten-
when he destroyed for a while the used car market to drive
people right out of their running clinkers.

[John S Mosby]

The California solution:
Mile Long RV parking in a Wildlife Preserve

https://www.youtube.com/watch?v=QMAQwWJYQtI

[Justa]

“People don’t make these large, luxury purchases unless they’re actually feeling better about the economy,”

Or feeling worse about high property taxes, HOA fees, and city, county and state taxes and fees.

Better yet, just immigrate to non-extortion land. It’s just beyond Shangra-La.

[John S Mosby]

Vast storage areas of “used” RVs repo’d.This is so uninformed and purposely idiotic. Interest rates for loaned to RV sales are NOT coming down.

Bidenomics, but truly dating back to Obamauamao-land... “fundamental transformation” running people OUT of the explosive dangerous cities. Living on the road, surprise- isn’t safe at all. Medieval.

[diverteach]

That’s exactly why I bought mine last fall.

[SaxxonWoods]

It doesn’t mean much of anything. RV sales went through the roof curing COVID and then the RV market adjusted down once that unusual situation ended. Now RVs are selling better again like many consumer related products due to a growing economy.

Too many people spend all their time looking for ways to make everything be bad news. Get on with life, people.