The millennial generation is now the largest consumer group in the United States.”
According to estimates, Gen Z and millennial consumers are almost twice as likely as GenX and boomer consumers to express an intention to purchase a boat or recreational vehicle. In 2021, the Boat and RV industry trade group reported that over half of all boat and RV buyers were younger than 55 years old, and more than one-fifth were between 18 and 34 years old. Millennials are expected to remain the largest consumer group for boats and RVs until around 2036 when Gen Z is expected to overtake them.
Millennials are accustomed to luxury and are more likely to seek out communities with Homeowners Associations (HOA) to avoid taking responsibility for maintenance tasks. However, when purchasing a boat or RV and living in a home or rental community with an HOA, dealing with the regulations on how to store it can be a challenge. Typically, this forces the homeowner/renter to find storage options. RV and boat storage facilities offer long-term storage contracts that provide a predictable and stable income. Unlike traditional real estate investments that are affected by the ups and downs of the housing market, RV and boat storage facilities offer a secured investment that is less affected by broader market trends.
HOAs consisting of single-family homes account for 60% of the United States, while condominium communities account for 38%. Homeowners’ associations for new construction homes are on the rise, with the South Region growing by 72% and the Western region growing by 51% in 2021. In Florida, Colorado, and Vermont, over 40% of the population lives in an HOA. With the popularity of recreational vehicles and boats and the need for Millennials to store them, there is no better time to invest in the RV & Boat storage industry.
Resources:
- https://nsmanagement.net/how-millennials-are-changing-the-condo-and-homeowner-association-demographic/
- https://sports.yahoo.com/homeownership-becoming-thing-past-changing-143703768.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAGok0dopHQSf8hoGn4S6FMXH86PZXDxna0XcdGn1U53uiuMOaOGTtq75hzlaU03XYTer-Zrh-sWUzY6nnfSdhmZidboVKSBNShZ2V-JAnea47axWJcmKnxzRKQTYjKuKrl1_3G7QZ9YavuJiLT5qZ43hxJEltghdpTZnsRnCaWNd
- https://www.rubyhome.com/blog/hoa-stats/
Contact:
Luke Elliott, Vice Chairman,
Cushman & Wakefield Self Storage Advisory Group
