The self-storage industry is exponentially expanding today owing to multiple reasons. The current pandemic has also contributed to the increase in demand for self-storage units. People rented more storage units during the pandemic as they had to shift to their homes and work remotely, increase space for their families to return, and make room for additions in the family. However, even before the pandemic, the minimalistic trend had a massive effect on the self-storage world. It is an exciting and intriguing thing to learn about such a mature industry still evolving and gearing forward at full speed.
Here are some exciting predictions about the self-storage industry-
Prediction #1- COVID-19 Pandemic and the Increasing Demand: Ever since 2020 made us all do a 180 on our lifestyles and beliefs, most of us have accepted the way the world is working today. Most, if not all, offices have switched permanently to remote or work-from-home practices. This switch has led many people to move back in with their families and store their valuables in a safe place like self-storage units to make more space for an in-house office. Furthermore, people had to make space at their residences for home offices, and the inquiries about self-storage facilities increased by 25% in 2020 after reduced lockdown restrictions.
Prediction #2- Downsizing, Minimalist Lifestyle, and Self-Storage Units: Millennials today are obsessing over downsizing and living in a minimal space that will fulfill their needs since renting homes is getting more expensive in bigger cities. On the flip side, older adults are establishing families and collecting material items that need space to be stored in. According to Self-Storage Association, about 10.6% of US households rent a self-storage unit, and these include families and individuals of all age groups, young to old. Thus, it’s easy to see that self-storage facilities provide solutions for every generation.
Prediction #3- Increased Purchases and the Need for More Space: During the lockdown that extended over 2020 and 2021, the world also witnessed a massive increase in online purchasing. The promotional offers and the psychological effect of shopping on stress cluttered the homes of many people. After the government reduced movement restrictions in the USA, people started searching for self-storage units close to their homes with the required facilities to keep their assets safe until they could use them. The total number of renter houses for self-storage units increased from 11,806,381 in 2017 to 13,495,671 in 2020.
Prediction #4- Increase in ROI: Investors are very much intrigued by the fashion of increasing demands for self-storage facilities. It is expected to have a compound annual growth rate of 134.79% between 2020 and 2025, making the self-storage industry the hotspot of every investor who wants enormous investment returns. According to studies, the average annual ROI for self-storage units from 2009 to 2018 was 16.9%, which is higher than any other industry including offices, retail, manufacturers, and apartments in that time range. The demands have only increased since then. Governments in most states are subsiding to create more self-storage facilities looking at the increasing rates.
About Xtra Storage Companies
If you’re looking for a safe and climate-controlled storage unit in the Miami Dade, Fl. area, Xtra Storage Companies is the answer to your prayers! Our self-storage units are safe, affordable, and climate-controlled to maintain your articles in the best possible condition. We also have self-storage units of all sizes to meet your requirements. You can reach out to us by filling out our online contact form.