Rental Numbers Double Near Palm Springs as Diesel Costs and a Weak Canadian Dollar Cloud the Outlook

Written by:

Steve Marcinuk

Date:

02 Sep 2026

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Most real estate investors think of RV parks as campground-adjacent assets with modest per-site economics. But a small segment of the market, deeded motor coach resort lots catering exclusively to Class A coaches, operates on a different plane entirely. These properties range from $20,000 for a bare concrete pad to $600,000 for a lot with a full casita, and they trade almost entirely in cash. With only about 30 such resorts across the United States, the market is small enough that a handful of leading indicators, diesel prices, Canadian dollar strength, rental occupancy, can shift demand in measurable ways within a single season.

As peak season approaches at one such resort near Palm Springs, those indicators are pointing in different directions.

Deeded Land, Not Residential Real Estate

A motor coach resort lot is classified as vacant land with improvements, not residential real estate. Buyers receive a deed to a specific lot within a resort community, along with access to shared amenities, golf courses, pickleball courts, and clubhouses. But they sleep in their RV, not in a structure on the lot.

The lots themselves vary enormously. At the entry level, a buyer gets a concrete pad with electrical hookups on the resort’s perimeter. At the top, a golf-course-facing lot might include a thousand-square-foot casita with a full kitchen, bathroom, and outdoor living space, everything but a bedroom. Between those extremes sit lots with pergolas – permanent aluminum-roofed sun shelters that can be upgraded with glass enclosures, shades, and privacy walls. Adding shades around a pergola alone can run $60,000 to $100,000.

The resort contains 419 custom-built lots, according to Peter Sutton, a Realtor with LPT Realty who specializes in motor coach resort properties near Palm Springs. “Every one of them is unique,” Sutton says. Buyer preferences span everything from sun orientation to proximity to friends already on-site.

Two Distinct Buyer Profiles

Sutton describes two primary buyer types. The first group shops on price, looking for the best value regardless of what’s built on the lot. The second shops on specifics, sun direction, privacy, view, and the quality of existing improvements.

What unites them is that these purchases are discretionary. Most buyers use their lots three weeks to six months per year. Some own at multiple resorts across the country and follow favorable weather. This discretionary character means the market is sensitive to factors that wouldn’t move a primary-residence transaction, diesel prices, interest rates on RV financing, and general consumer confidence among high-net-worth retirees and semi-retirees.

The buyer demographic is also shifting slightly. “We’re starting to see a little bit younger generation start to show up,” Sutton notes. “Forties and fifties are starting to show up, which is kind of exciting to see.”

Seasonal Selling Patterns Vary by Lot Type

Unlike residential real estate, where days-on-market averages provide a useful benchmark, motor coach lots follow seasonal selling patterns that vary by lot type. Casitas tend to sell early in the season because buyers want to use them immediately and avoid carrying HOA payments through an empty summer. Pergola lots sell more steadily throughout the season. Economy lots move at either end. Undeveloped lots with building potential are sensitive to local construction costs and contractor availability.

“These can take up to a year,” Sutton says of overall time on market. “But I’ve also sold some in 24 hours.”

His tracking over the past 18 months shows that economical lots sell at roughly the same rate as premium ones; buyers in the lower tier tend to be more aggressive when they find the right opportunity.

Conflicting Demand Signals

The broader Class A RV segment is not following the same trajectory as the rest of the RV industry. While trailers, fifth wheels, and smaller motorhomes are performing well, Class A deliveries have dropped 25% in just the past four months, according to Sutton. Used Class A values, however, have declined only about 2%.

For motor coach resort lots, this creates an uneven demand picture. “The latest report I pulled showed that on the Class A side, it’s good, it’s not fantastic, it’s not bad, but it’s fair,” Sutton says.

Several other indicators are in play. Rental occupancy at the resort is currently at 20%, double the typical 10% seen at this point in the year before peak season. Since roughly a third of lot sales originate from renters who fall in love with the resort, elevated rental numbers suggest stronger buyer traffic in the coming months.

Working against that: Canadian buyers, who represent 13% to 15% of the market, have pulled back due to currency weakness and trade-related tensions. Diesel prices affect how far and how often owners travel. And while lot purchases are almost always cash, interest rate movements still matter indirectly; they influence RV financing decisions and broader wealth allocation among buyers who treat resort lots as discretionary spending.

Compensation Norms Differ From Residential

The resort recently saw one of its first transactions involving a buyer’s agent, and the experience highlighted how commission structures differ from residential. “Generally, the buyer is going to most often pay for their agent, whereas tradition in residential is that the seller’s going to pay both sides,” Sutton explains. “That’s not always true when you’re talking about RV resorts.”

The new buyer-agent compensation rules that reshaped residential transactions have practical implications here, but the market had already operated closer to that model, buyers negotiating compensation with their own agents rather than relying on seller-funded co-op offers.

What Comes Next

Prices have been correcting downward since the COVID-era peak, when lots were scarce and expensive. The resort follows the housing market to a degree, but its primary demand drivers remain specific to the Class A lifestyle segment. Sutton says he is watching rental numbers closely as the leading indicator for the season ahead. “If we got double the amount of renters, we will see an increase,” he says. With fall rental occupancy already running at twice its typical level, the next two months will determine whether that interest converts to purchases, or whether headwinds from Canadian buyer pullback, diesel costs, and broader economic caution keep transaction volume flat.

About the Expert: Peter Sutton is a Realtor with LPT Realty who specializes in motor coach resort properties near Palm Springs, California.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.