Signs of slowdown in RV industry after Keystone RV Company announces plant closures (2024)

FAQs

Is the RV industry slowing down? ›

“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.”

The plant closures come amid nationwide fears of a rescission. High gas prices pushed inflation to 9.1 percent in June, a 40-year high, and the Federal Reserve has begun to raise interest rates aggressively in an effort to curb it.

Driven by an increased interest in domestic travel and the shift towards more remote work, the compound annual growth rate of the North American recreational vehicle (RV) industry is expected to grow by 7%, from US $18.36 billion in 2023 to US $26.96 billion by 2028.

It predicts a slight growth in shipments (the number of new RVs bought by dealerships) for 2024. With estimates ranging from 334,000 to 365,000 RVs set to be shipped throughout the year, the average projection stands at 350,000 units. This forecast suggests a potential growth of 8.8% to 18.8% compared to last year.

Brand-new RVs start losing value as soon as they're driven off the lot and continue to lose value throughout the first year rapidly. The RV depreciation rate increases at a steady rate after that until your RV hits double digits in age. Once an RV is ten years old or older, its value drops more rapidly.

Additional growth is expected through 2025 with wholesale shipments increasing to a range of 374,200 to 408,600 with a median of 391,400 units. In March, the ITR Economics/RVIA forecast projected 2024 RV shipments to range between 334,700 to 365,500 units with a median total of 350,100 units.

In a comparison of Keystone and Forest River destination trailers, you will find them equal when it comes down to quality, livability, and more. One of the only areas of differentiation is that Keystone does not have the same reputation for quality customer service as Forest River.

Keystone RV was purchased by Thor Industries in 2001, and its new parent company helped bring Keystone to the next level. Today, Keystone owners can enjoy the durability and tech advancements that Thor helps bring to the table.

Keystone RV Company (Keystone) is recalling certain 2021-2023 Montana, 2021-2022 Montana High Country, 2022-2024 Fuzion, 2021 Crossroads Cruiser, and 2024 Dutchmen Aspen Trail LOFT vehicles. The LED backlight circuit board in the cooktop range may fail, causing the board to overheat.

Together, the THOR family of companies represents the world's largest manufacturer of recreational vehicles. We offer a comprehensive range of RVs and travel tools to inspire and empower everyone to Go Everywhere. Stay Anywhere.

Where are the most RVs sold? ›

The RV industry is expected to grow by a CAGR of 7% from 2021 to 2026. There has been approximately 30,000 RVs produced a month - a wide range of types of RVs. Over the past few years, the state that has sold the most RVs is California.

The Covid-19 pandemic forced more people into poverty. Some of the RV dwellers have jobs but either don't want to pay apartment rent, or can't afford to pay it, in a city where the average one-bedroom apartment costs around $2,500 a month.

At one point, there was a jaw-dropping 53% decrease in shipments compared to the previous year. While that gap has narrowed slightly to around 43%, it's essential to recognize that the RV industry is still facing a substantial decline in production.

For the many Millennials and Gen Z individuals embracing a minimalist lifestyle these days — such as owning fewer possessions, living in a smaller space, etc. — it's easy to see how living in an RV can be a natural extension of this philosophy.

As of May 2024, RV loans come with interest rates as low as 6.99% for borrowers with excellent credit. You may qualify for a loan if you have bad credit, but you'll pay much higher rates.

You're shopping outside of peak season

Some dealerships may even slash their prices right before winter to avoid having to winterize RVs. According to CamperFAQs, March and April were the peak months for RV shipments in 2022 and 2023, so you probably want to make your purchase well before early spring.

The Covid-19 pandemic forced more people into poverty. Some of the RV dwellers have jobs but either don't want to pay apartment rent, or can't afford to pay it, in a city where the average one-bedroom apartment costs around $2,500 a month.

The RV industry is expected to grow by a CAGR of 7% from 2021 to 2026. There has been approximately 30,000 RVs produced a month - a wide range of types of RVs. Over the past few years, the state that has sold the most RVs is California.

This new research shows that Millennials have overtaken all other generations by more than double. Furthermore, the median age of today's RV buyer is now 32, a 22% decrease from 2021 and well below where the industry has been in the past.