In Progress

LESSON 8 — COST OF BUILDING NEW SITES

THIS NUMBER SHOCKS EVERY BUYER

Buyers often assume a new site costs a few thousand dollars to add. It doesn’t. Here’s what a finished, income-producing site actually runs:

COST PER NEW RV SITE

  • Basic setup — $12,000 to $20,000 per site
  • Full service + 50-amp — $20,000 to $35,000 per site
  • Resort-quality — $40,000 to $80,000+ per site

Premium locations, luxury amenities, retaining walls, or difficult terrain can push it higher still. And that’s the all-in number. It includes:

  • Site clearing
  • Engineering and surveying
  • Permits and approvals
  • Grading and excavation
  • Roads
  • Water and sewer extensions
  • Electrical service and pedestals
  • Drainage and stormwater systems
  • Landscaping
  • Signage
  • Final inspections

WHAT MOVES THE NUMBER

The same site can cost twice as much in one place as another. The big drivers:

  • Hookup level — partial vs. full (water, sewer, electric)
  • Amp service — 30-amp vs. 50-amp
  • Region and weather — frost depth, snow, rainfall, and local labor and material prices
  • Site conditions — rock, slope, soil, and water table
  • Distance to existing utilities — every foot of trench and road adds up
REGION & WEATHER CHANGE EVERYTHING

A site in the frozen North isn’t the same price as one in the Sun Belt. Cold climates bury utilities below a deeper frost line, need frost-protected pads, and have shorter build seasons. Rocky ground means blasting; a high water table means fill and a mounded septic; heavy rain means more drainage. Never trust a national “average” — get a local contractor’s estimate for this site, in this region.

FEWER SITES COST MORE EACH

Building five sites costs far more per site than building twenty-five. Mobilizing crews, engineering, and permitting are mostly fixed costs spread across however many sites you build. Small phases carry a premium — which is exactly why you engineer the full build-out up front, even if you build it in stages.

THE QUESTION THAT MATTERS: DOES IT PAY BACK?

A site that costs $30,000 to build only makes sense if it earns its way back. Before you pour a pad, ask:

  • Will this site generate enough revenue to justify the investment?
  • How many years will it take to recover the cost?
  • Will guests actually pay higher rates for the new sites?
  • Can existing utilities support the expansion?
  • Will the added income raise the campground’s value?

And sometimes the smartest money isn’t a new site at all — upgrading tired existing sites can deliver a better return than building from scratch. Expansion should create profit, not simply more campsites.

DON’T FORGET THE COST OF MONEY

Here’s the cost almost nobody counts. If you pay cash, a site costs what it costs. But if you finance the construction, the true cost is the build price plus the interest. A $30,000 site financed over a typical loan can really run $40,000 to $60,000 or more by the time it’s paid off, depending on your rate and term. Always underwrite new construction on its financed cost — not just its sticker price.

LESSON TAKEAWAY

Building new sites can be one of the best investments you make — or one of the most expensive mistakes. Weigh construction cost, the cost of money, infrastructure capacity, expected revenue, and long-term maintenance. Don’t build a site because you have room. Build it because it makes financial sense.

HG
Harold’s Take
Harold Goehring · Founder

“Don’t let anybody hand you one magic number for what a site costs — it changes with the region and the weather more than people think. Up north you’re digging below the frost line and fighting a short season; on rock you’re paying to break ground that doesn’t want to move. Get a real local bid before you ever count those sites as income. The cheapest site to build is the one you planned for the conditions you actually have.”