Population growth and per capita disposable income are the most important drivers of demand for Self-Storage. Increased population density in cities and suburban regions boosts demand for condos and apartments. Renters of these properties tend to seek supplemental space for their possessions due to the fact that apartments usually have less storage space than homes. Additionally, with the increasing disposable income, consumers will obtain more spending power, resulting in raising the demand for storage of the goods purchased. Declined rental vacancy rates also contribute to a greater demand for storage. Apartment rentals have risen during the five-year period as economic forces compelled more people to move out of their homes and into rental properties. Many members of Generation Y, consisting of 18 to 35-year-olds, have chosen to rent rather than buy new homes.
Growth in the rental market, driven by this cohort, has helped propel an increase in storage and warehouse rentals.
Households and businesses often need to temporarily or permanently store various goods, making demand from these markets a basic driver for industry services. Households store belongings in locations away from the home when there is an increase in material possessions or a lack of storage space. People who do not wish to dispose of certain items can keep them in an alternative location with future access. The price of storage facilities plays a role in demand for industry services. Just as businesses can reduce storage costs by using mini warehouse facilities, it may be more cost effective for large and growing families to use self-storage than to move to a bigger house, build additional rooms or purchase storage solutions for the home. Furthermore, people who are moving or are undergoing home renovations may require temporary storage. People who are relocating for work or education purposes often require storage space. As companies expand across the United States, opening new offices and retail outlets, some employees may be required to move. In many instances, particularly if the move is temporary, people choose to hold possessions in self-storage facilities. Additionally, many people require places to store collectibles, sporting gear and hobby equipment, which influences demand for this industry. For example, people who own classic cars often store them away from the home due to space restrictions.
Source: Self Storage Cafe 20223 & IBIS World