Self-storage facilities offer individuals a place to rent and store their personal or business belongings. These storage units, often divided into smaller spaces within large warehouses, are typically rented on a month-to-month basis. In the U.S., self-storage units are often found in prime locations, usually painted in bright and unattractive colors like green or orange.
Self-storage thrives in tough times.
During challenging periods, people tend to move more frequently, leading to increased demand for self-storage rentals. Whether it’s downsizing, death, job relocations, or divorces, these life changes are often linked to higher storage needs. It’s not a happy scenario, but it’s a reality that boosts the industry.
Self-storage thrives in good times too.
In booming economies, when consumers fill their carts with Amazon and Walmart purchases, they also need extra storage space, often indefinitely. So, whether it’s during economic uncertainty or growth, self-storage businesses benefit from changing consumer behaviors.
In spring 2020, the economy was gripped by fear, and students were suddenly sent home. This was a surprising boon for the self-storage industry as college students rushed to store their belongings until their return to campus.
The Relocation Boom and Office Shifts
Another surge in demand came in 2023 and 2024. With many employees working efficiently from home, businesses recognized they could maintain productivity while reducing office expenses. Many Americans, facing their own mortality, seized the moment to move to their dream lake or mountain retreats earlier than expected.
This mass relocation trend, with people leaving cities like New York and Chicago, has greatly benefited the self-storage industry. Additionally, the shift away from large office spaces has driven demand for temporary storage as companies store furniture and equipment. This “temporary” need is expected to become a long-term reality for many businesses.
Unfortunately, COVID also led to the sudden closure of retail stores, bars, restaurants, and event spaces, creating a need for storage of furniture, equipment, and inventory.
Key takeaways:
- The self-storage industry continues to grow due to life transitions and relocation booms.
- Office downsizing has created a new, long-term demand for temporary storage solutions.
- The industry has shown resilience during both economic downturns and growth periods.