The Boat Market is Changing Fast: 8 Trends You Need to Know transcript

87% of every power boat sold in this country now hangs its engine off the back. The stern drive is basically dead. In 1984, sailboat builders sold about 6,000 new sailboats in the US. Last year, around 300, and the average boat on the water today is 25 years old, while the average American boat owner is 60 years old. This data comes from actual boat registration data on roughly 9 million boats. The numbers the industry uses but almost never shows you.

We got a look behind the curtain. And today I'm going to walk you through the eight findings that surprise even us. And more importantly, what each one means if you're thinking about buying or selling a boat right now. I'm Maryline Bossar with Current Yachts and I recently sat down with Peter Houseworth from Infolink to record an episode on the state of the US market for the Full Displacement Podcast. InfoLink is a firm that spent 27 years compiling boat registration data from all 50 states and the Coast Guard.

This is the kind of intel boat manufacturers, insurers, and finance companies pay to see. It rarely reaches regular boaters. If you want to see more data like this, be sure to subscribe. We share boat buying guidance and market insights like this every week. Let's get into the numbers. Finding one boats last far longer than people think. The average power boat in America is now 25 years old. Turns out fiberglass, modern resins, and better build processes are so good now that a well-kept boat can run 40, 50, even 60 years.

Peter's point was blunt. Hurricanes and fires destroy only a tiny fraction of boats. Almost everything ever built is still out there waiting for its next owner. And here is why this matters to you. There's a deep inventory of good used boats out there. And with better technology getting retrofitted onto older hulls, new electronics, stabilizers, a new engine, a 20-year-old boat can be brought right up to date. If you're an experienced boater, you already know that age alone is not the enemy.

Condition is. Experience in boating brings us to the next number. Finding two. The boat owning population is getting older and smaller. Back in 2000, the average American boat owner was in their mid-40s and today just over 60. The single biggest ownership group is now the 60- 69 crowd. the exact opposite of where it sat 25 years ago. And here is the one that keeps our whole industry up at night. Only about 7% of Americans own a boat today, down from 10 to 12% a generation ago.

And that's despite the US population actually growing. So, you may be wondering why is the boating population shrinking. Part of that is behavioral. Younger generations lean toward access over ownership, but a bigger part is affordability. And that theme runs through everything we're going to look at next. Finding three, the total fleet isn't really growing, but underneath that flat number, the mix of boat categories tells a different story.

Over the last 10 years, pontoon boats are up 34%. Towboats, your ski, wake, and surf boats are up 29%. Saltwater fishing is up 10%. Now, those are the winners. And the biggest losers, runabouts, the classic 16 to 21 foot bowrider, the boat a lot of us started on, is down 28%. Sailboats down 22%. That data tells us exactly where the market is going. The versatile do everything family-friendly boats are winning. The entrylevel starter boat is getting squeezed out, and price is a major factor.

A new small runabout now runs $60 to $80,000. And a lot of first-time buyers just won't cross that line for a starter boat. Which leads me to finding four, and it's my favorite because it's a genuine success story. The pontoon boat is eating the market. Go back to 2000, and pontoons were about 1 in 8 new powerboats. Today, they're 1 in 3. There are over 1.3 million pontoon boats registered in the US today. Peter calls the pontoon the SUV of our industry.

It does a little of everything. hold the family, tow the kids on a tube, fish, cruise, rafted up for the afternoon, and more than half of pontoon buyers are first-time boat owners. That's the industry's front door right now. One thing that may surprise you, though, these are not the cheap boats they used to be. Peter was shocked to see a 24 ft pontoon at the Miami Boat Show wearing a $350,000 price tag. Standup showers, built-in coolers, rearrangeable furniture.

They've come a very long way from a piece of dock with an engine on the back. Quick note here. If any of these trends have you rethinking your next boat, we'd love to have this conversation with you. Advising buying clients is exactly what we do every day at Current Yachts. So, book a complimentary meeting with us. See the link in the description. Okay. Finding five, and this is the big one. The death of the stern drive. 87% of power boats sold in the US last year were outboard powered boats.

The stern drive, the inboard outboard setup that dominated for decades is, in Peter's words, essentially done. It's got a long time. It's just not going to be increasing ever. I think for for at least in our lifetime, let's put it that way. And it's not just small boats. Outboards have marched all the way up into the cruiser and yacht segments, boats 33 feet and bigger. Peter described walking a boat show recently and seeing a 60 ft yacht with a big California flare bow, walking around the back to find five 300 horsepower outboards bolted across the transom.

So why did this happen? It's the repowering benefit. Has your family ever had to repower an old inboard vessel? Now think of an outboard. Unbolt it, unclip the harness, clip in the new one. Done. That ease is why the whole market moved. And here is the strategic angle for buyers and sellers. It means these boats stay serviceable and valuable for decades because re-engineing is simple, but it also means if you're looking at an older stern drive boat, you want to go in with your eyes open about the system's future.

Finding six is one that stings for me as a sailor and for our fellow sailor watching. We touched on it in the intro, but it deserves a real moment. New sailboat sales peaked in the US in 1984 at about 6,000 boats a year. Last year it was around 300. That's a 95% collapse. Sailboat registrations are down 22% in just the last decade. And Peter, a lifelong sailor himself, admitted the segment has gotten so small the industry barely reports on it anymore.

But here's what you need to know. It's not that people stop loving sailing. It's that they've been priced out. A slip that costs $400 a month behind a house in Pompano Beach, Florida, is now $1,500 to $2,000. Add the rising cost of ownership and the aging out of people who know how to sail, and you now understand how we got here. The upside on the used market, 85% of the sailboats changing hands are 20 plus years old.

Meaning there are a lot of proven, capable, well-loved sailboats out there at accessible prices for people who still want the dream. Finding seven. And if you're shopping right now, you must already know this. We are in a buyer market. The numbers are clear. Two data points. First, for every one new boat sold in America, 4.2 pre-owned boats change hands. As Peter puts it, the used market is the real market that's lubricating the whole system.

Second, and this is worrisome to a lot of boat builders right now, new boats are now sitting on dealer lots. an average of about 360 days before they sell. A healthy market is 180 to 200 days. During the pandemic frenzy, it dropped to 120 days. We're now at nearly double the healthy number. So, what does this mean? Aged inventory is sitting longer in the field. Dealers are starting to pay what's called curtailments, the financing costs of stock inventory, because boats won't move.

That pressure pushes prices down, may even push dealers and shipyards out of business. If you are a buyer and you're flexible on model year, there are some serious deals to be made right now. So, do your research and go find them. Which brings us to finding eight. The flip side of that, sellers. During the pandemic, this was a sellers market on steroids. Inventory was completely depleted and you could ask almost anything and have buyers fighting over it.

But those days are over. Today's sellers are often selling under the value they'd expect. And with all that new boat inventory starting to come down in price, the gap between a new bow and a used boat is closing in a bit, which puts even more pressure on used prices. So, if you're selling, the lesson from this data is harsh, but needed. Price to today's market, not to 2021. Present the boat properly and understand you're competing against discounted new inventory.

A boat that is priced right still sells. A boat priced on memory just sits. And if you wait to see exactly how long sitting lasts, your holding cost will be eating up all of your equity. Stepping back and looking at the whole picture, an aging fleet and an aging owner base. A market sorting hard towards versatile do everything boats and away from entry-level ones. Outboards everywhere. Sail fading but leaving bargains behind. and a genuine buyers market backed by 360 days of new inventory on the lot.

Here is the silver lining though. The boating market is resilient. Peter's been doing this 27 years through the luxury tax and the great recession and the pandemic and even with today's interest rates and tariffs. Peter's take is we're hanging in there. No market crash, just caution and a definite opportunity for people who understand the numbers. And understanding the numbers is the whole point of what we do at Current Yachts.

Whether you're buying into a buyer market or trying to sell smart in a tougher one, we are here to help. We encourage our clients to make the best call with real data instead of guesswork. No pressure, just straight answers. If you're ready to book a chat with us, see the link in the description. Thank you so much for watching. I trust this video helped you see the market a little more clearly. Please hit the like button if you learned something new today and please tell me in the comments what is the finding that surprised you the most.

And to listen to my full conversation with Peter at InfoLink, see this episode of the Full Displacement Podcast. I'll link it up here and I will see you there.