The boom and bust RV cycles of Elkhart

The latest rankings in the Emerging Housing Markets Index has Elkhart, Indiana at the top of the list:

Photo by Kampus Production on Pexels.com

Small U.S. cities dominated The Wall Street Journal/Realtor.com Emerging Housing Markets Index in the third quarter, as high housing costs and remote-work opportunities drive many home buyers to seek out more living and outdoor space…

Elkhart, Ind., which bills itself as the RV capital of the world because its region is the country’s leading manufacturer of recreational vehicles, topped the housing index this quarter, followed by Rapid City, S.D., Topeka, Kan., Raleigh, N.C., and Jefferson City, Mo…

The recreational-vehicle industry is a major player in Elkhart’s economy. The Covid-19 pandemic spurred more RV demand, as households wanted to travel while keeping their distance from others. Wholesale RV shipments in the first eight months of 2021 rose 53.8% from the same period in 2020, according to the RV Industry Association…

The median home-sale price in Elkhart County rose 12.3% in August from a year earlier to $209,900, according to the Indiana Association of Realtors. There were 163 homes for sale that month, down from 220 a year earlier.

I am glad that Elkhart appears to be doing well at the moment. Having lived nearby for five years, the area has a lot to offer and economic development would be welcomed.

At the same time, it was not so long ago that Elkhart faced a difficult time. When the economy is not doing so well, such as in the late 2000s with a burst housing bubble, fewer people had money for RVs. Demand shrunk. Jobs disappeared. Before that, this area and South Bend were home to numerous manufacturers who went out of business or left. The homes have been cheaper here for a long time because few people want to move in.

It is good that this community in the Rust Belt at least has the opportunity to at times benefit from upticks in RV sales. Such industries and jobs could leave completely. But, having so many fates tied to one industry that can go up and down is trying in the long run. Numerous communities in the United States have looked to diversify their economic base – see the recent rush to add tech companies to their portfolios – even as they might have local economies based around a few companies or a few sectors. RVs may sell well one day and then conditions change and demand drops or new technology moves in. May Elkhart take some of this positive momentum and add to lineup of industries and services.

One thought on “The boom and bust RV cycles of Elkhart

  1. Pingback: Rising real estate values in affordable markets make it harder to enter that market | Legally Sociable

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