Caravan parks in Australian capital cities have provided a source of housing at the lower end of the market for many years. This includes opportunities for both private rental and home ownership. However, emerging trends in the property market have threatened the viability of caravan parks. In order to maintain or increase income levels, some caravan parks have focused on more profitable short‐term tourist opportunities rather than traditional long‐term housing. While the closure and conversion of caravan parks raise crucial questions for Australian social and housing policy, there are also implications for the broader property market. This paper examines the changing role of the operation of caravan parks, with the emphasis placed on their economic feasibility. The research is based on a survey of 30 caravan park operators in Queensland, Australia. The factors influencing caravan parks are identified, and suggestions to address the changing role of caravan parks as a provider in the affordable housing market are canvassed.