When Will RV Prices Go Down?
Anyone looking for a new (or used) RV these days is in for a shock when they ask about RV prices. The cost of an RV is at an all-time high after 2 years of pandemic-fueled price increases. The pandemic created unprecedented demand for RVs for 3 main reasons:
- RV travel and vacations were seen as a solution to pandemic travel restrictions. This included both air travel for holidays or even work-related trips. RVs also provided a perfect way to isolate and social distance while enjoying a family vacation.
- Many jobs became remote. During the pandemic, employers and employees both realized that many positions no longer require the physical presence of employees. Widespread use of virtual meeting platforms like Zoom and Google Hangouts made it possible for many jobs to be performed from wherever employees have access to the internet. Many employees have used this new freedom to embrace a nomadic lifestyle, for at least part of the year.
- Housing prices have been skyrocketing in the last 2 years. This has had some adventurous people thinking that an RV provides all the living space they need, with the freedom to relocate whenever and wherever they want. This is perhaps especially true of those who are able to work remotely.
Between 2020 and 2022, the demand for RVs was huge. The supply of RVs, however, was not.
Supply chain interuptions and worker shortages
Aside from causing increased demand for RVs, the pandemic years also saw supply chain interuptions and shortages. RV manufacturers found themselves waiting for parts and supplies that were needed for the production of RVs. Just as importantly, there was also a shortage of plant workers and RV technicians. This didn’t bode well for the production of new RVs. Dealers soon found themselves unable to order nearly enough RVs to meet the new demand for them.
A simple rule of economics is that prices increase when demand exceeds supply. In 2021, RV prices reflected the unbalanced state of the RV market. The price for a new RV increased to higher levels than have ever been seen in the industry. And they’ve pretty much stayed there.
RV supply in 2022 will increase for both new and used RVs. RV manufacturers are finally catching up on production of RVs. This means RV dealers are once again seeing almost normal numbers of RVs on their lots. There are also a lot of used RVs coming onto the market. People are now able to hop on a plane and visit their favorite resort.
Some people who bought RVs in 2020 or 2021 are now realizing the RV lifestyle isn’t necessarily for them. Rampant inflation on everything from consumer goods to fuel has many people second-guessing their RV purchase. For some people, selling while RV prices are high just makes good sense.
Record fuel costs and rampant inflation will keep some buyers out of the RV market in 2022. As vacation options open up again, some buyers will lose interest in purchasing an RV for family vacations. However, new demand for RVs from the millenial age group is keeping demand for RVs stable.
Will RV prices go down in 2022?
There will still be enough demand for RVs to keep prices high through most of 2022. The good news is that we are unlikely to see further increases in RV prices as the market stablizes. The bad news is that we are unlikely to see prices go down substantially on new RVs. By October, when faced with either storing the RV or selling it, some new RVers will choose the latter. The fact that prices will still be high will make this even more attractive.
We will see more used RVs come onto the market around the middle of October. This increased supply and slackening demand may well lead to used RV prices going down. However, unpredictable world events continue to impact supply chains and effect the US economy. 2022 may see shortages of essential RV components such as aluminum and various RV appliances. We won’t hold our breath for RV prices to go down this year.
One of the best parts about RVing is engaging with the community of traveling enthusiasts. iRV2 forums allow folks to chat with other RVers online, and get other perspectives on everything RVing, including products, destinations, RV mods, and much more.
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