Baby Boomers Clamoring for RVs
The RV industry is currently benefiting from a surge of baby boomers
who are reaching retirement age. According to industry research, people
between the ages of 55 and 64 are more likely to buy
RVs than any other age group.
By 2010, the RV industry expects to sell 500,000 RVs, motor homes and
travel trailers a year, up from 350,000 now.
Used RVs are selling just as well as new
RVs. Whether they're late model RVs with low miles or older RVs with high
mileage, they disappear almost as fast as RV franchises can get them.
Some baby boomers have run into speed bumps such as higher interest
rates and unstable fuel prices when looking to buy their RVs however.
Interest rates are expected to decline in the first half of 2007 as well
as fuel prices. More consumers are also turning toward smaller units or
used RVs.
Sales of motor homes and travel trailers generate millions of dollars
for the US economy. About 5,300 motor homes
and travel trailers are sold a year just in the state of Wisconsin alone.
20% of those RV sales are made in the metropolitan Milwaukee area.
RV, motor home and travel trailer
sales are strongest early in an economic growth cycle when interest rates
are low and consumer confidence is improving. Sales languish when the
cost of borrowing money rises and the economy sputters.
It is expected that 2007 will be the start of a new economic growth cycle,
and baby boomers will be clamoring for RVs once again.
