Boat values soared to record highs during and immediately following the pandemic, with average global boat value jumping 29 percent higher than pre-pandemic levels. However, despite the higher-than-expected price tags during what has been referred to as a “boating boom,” both buyers and sellers remained largely undeterred by prices. In fact, high boat prices prompted many existing boat owners to seize the opportunity and opt for a boat upgrade. After all, what boat lover out there wouldn’t want the chance to trade in their used bowrider boat for a brand new center console fishing boat with modern, efficient Mercury 600 HP power plants? Through 2023 the sale of new powerboats declined, but only by 6.8 percent. (Jet boats were an interesting anomaly, with sales for new jet boats jumping by 44.3 percent). Although today the boating boom is over and demand for most new boats has slowed, boat prices and the value of used boats for sale remain exceptionally strong.
In a 2022 survey of boat sellers across the country, Boat Trader learned that 39 percent of sellers on its For Sale By Owner (FSBO) boat marketplace said they were listing with the intention of upgrading their vessel, while another 18 percent stated they actually expected to sell their boat for a considerable amount, perhaps even earning them a profit (a rarity for what is traditionally considered a depreciating asset). Of the more than 3,500 private sellers surveyed, five percent said they plan to downsize but remain in the boating lifestyle. Only three percent of survey respondents reported selling because they could not afford their boat.
The trends continued in 2023, with close to half of respondents (49 percent) surveyed February 1 through March 1 expressing a desire to upgrade. Of these, 40 percent of millennials that purchased their boat during the pandemic boom reported an intent to upgrade.
During and immediately following the pandemic, in addition to higher prices in the boating world an increased demand in outdoor activities along with supply chain issues in the boat building industry caused an inevitable inventory shortage. Although those issues are now things of the past, the same factors continue to help private sellers fetch high prices for used boats as well as drive up the cost of newer more desirable boat models.
Are Boaters Unsettled By A Looming Recession?
Despite some apprehension about the current economy, only one in 25 respondents (four percent) said economic uncertainty was a reason for selling their vessel, while a mere three percent are selling due to high fuel prices. Respondents also reported relocating or moving factored into their decision to sell. Many new boaters came into the lifestyle during the pandemic, and purchased smaller trailerable vessels, or “starter boats.” These boat owners may now be looking to upgrade to larger or more equipped vessels, as they get more comfortable on the water.
“The pandemic-driven rush to boating pushed the industry to focus on retention,” said Courtney Chalmers, VP of Marketing for Boat Trader. “Based on our survey findings and marketplace data, high prices and inventory shortage didn’t deter boat buyers. More private sellers also listed their boats for sale as inventory levels begin to normalize, with listings up by 65 percent during the summer boating season in 2022 compared to the previous year.”
Which Boat Brands Are Holding Value The Best?
Our seller survey also found that among the 434 boat brands listed by private sellers, Bayliner, Boston Whaler, Chaparral, Sea Ray and Yamaha were the most popular, and nearly half of the boats listed were models newer than 10 years. These boat builder names are not surprising as they tend to rank among the top in terms of the best boat brands in the marine industry, year in and year out. The top five states with the most boats listed for sale by a private seller were California, Florida, Michigan, New York and Texas, where a higher-than-average demand for boats would be expected.
Where Boat Sales Are Trending
As 2024 draws to a close, boat sales for the year are expected to remain more or less on par with 2023. According to the National Marine Manufacturers Association (NMMA), interest rates and ongoing shifts in consumer confidence remain the important factors to be navigated.
“With interest rated and inflation in 2023 we saw more boating consumers being price sensitive and deciding to wait things out before buying their next boat and in the meantime, picking up a personal watercraft to enrich their time spent on the water,” said Frank Hugelmeyer, NMMA president. However, he also added that “The nearly one million people who purchased a boat for the first time during the height of the pandemic continue to spend record time on the water.”
Despite the end of the boating boom its impact stays with us, and recreational boating remains a significant contributor to the U.S. economy, driving an impact of $230 billion, up 36 percent from the pre-pandemic year 2018, while supporting 36,000 U.S. businesses and 812,000 American jobs. What’s of the most interest to many boat owners, of course, is that the boat they currently own has likely retained more of its value than would have been expected in the pre-pandemic times. That means you could sell yours for a higher price, making an upgrade more attractive than ever.
Editor’s note: This article was originally published in November of 2022 and was last updated in October of 2024.
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