The global COVID-19 pandemic upended the way many Americans live and conduct business, and it also had ramifications when it came to the self-storage industry. While many businesses suffered in the face of lockdowns and growing health concerns, mini storage was not among them.
Instead, the self-storage industry thrived during a time when many home- and business owners found themselves forced to relocate or downsize. Demand for self-storage remains sky-high now even as pandemic-era hardships and restrictions continue to ease.
Industry Trends
Today’s mini storage industry appears poised for growth. Continuing urbanization across the nation and ongoing economic gains paint a rosy outlook for the future of the self-storage marketplace. Demand for self-storage remains particularly high in cities and urban areas, where rising rent and home prices force many residents to move around more often than they might like. Baby boomers and millennials are also among those most likely to rent storage units, and as these groups increasingly dominate today’s consumer marketplace, demand for self-storage increases, too, as investors and entrepreneurs seek to accommodate their needs and wants.
Professional Demand for Self-Storage
As the pandemic forced many of the nation’s professionals to start working from home, some business owners started questioning whether they really needed to rent office space. This led to increased demand for self-storage among business owners who decided they didn’t need a designated space to conduct business – but still needed somewhere to store their business assets.
Homeowner Demand for Self-Storage
Demand for mini storage also remains high among families and homeowners. Current estimates suggest that about 10.6% of American households now rent at least one storage unit. This number may continue to grow as an increasing number of families find themselves struggling to grapple with rising rents and mortgage rates.
Stability in the Self-Storage Industry
Certain pandemic-era trends continue to increase demand for self-storage. As rising home prices, staffing challenges and sky-high mortgage rates continue to create challenges for Americans, many continue to opt for mini storage as an economical alternative to buying or renting more home or office space.
Investors, economists and consumers all agree – the self-storage industry remains on an upward trajectory, and investors anticipate demand continuing to soar during the final months of 2022.
