Why Self-Storage is Built for Growth

High Demand, Inflation Hedge, and Resilience Through Cycles

The Vitality of Self-Storage

Americans use self-storage for a variety of purposes, spanning both personal and business needs. From 2020 to 2024, annual self-storage industry revenue grew over 13%, from $39 billion to $44.33 billion.

Reliable, Resilient Industry Fulfills
Consumer and Business Needs

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storagecafe.com

Reliable Demand

In good times and bad, self-storage facilities will always be in demand. When the economy is booming, household consumption increases and people have more items to store. During a downturn, people tend to downsize and move, using self-storage for their belongings. Businesses employ self-storage as a secure and economical replacement for office and warehousing space. A future-proof service, self-storage is reliably in demand.

Self-Storage Industry Snapshot

Annual industry revenue

$44.33 billion

Number of storage facilities

52,301 facilities

Total rentable storage space

2.1 billion square feet

Storage space per person

6.32 square feet

Percentage of households that rent a storage unit

12.6%

Average monthly cost for a
self-storage unit

$85.30

sparefoot.com; Yardi Matrix

Stable Market Drawing New Investors

Self-storage has had the highest total annual returns over 10-, 15-, 20- and 25-year averages in an analysis of 7 different property sectors, including residential, industrial, and office (National Association of Real Estate Investment Trusts). REITs, high net-worth individuals, family offices, and institutional investors including large private equity firms are investing in the self-storage market, fueling increased sales prices and acquisition activity.

Self-Storage Construction Spending

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Self-Storage as a Low-Cost, High Performing Asset Class

  • Low operational costs related to personnel, maintenance/repair, capital expenditures, infrastructure, eviction expenses, utility costs.
  • Strong NOI operating margins and low breakeven occupancy rates.
  • Low turnover costs and easy management: show, rent, turnover, sweep and re-show.
  • Fewer investors competing for opportunities than in other real estate asset classes.
  • No rent regulation and month-to-month tenancies mean rental rates are immediately responsive to inflation and economic changes.
  • Easy eviction/content auction.
  • Low liability with no on-site tenants.
  • Considerable opportunity for investment exists, with over 40% of owners being smaller operators.
  • Scalable through expansion of an existing building or adding a new one, as development costs are much lower than for other asset classes.
Learn more about investing in Self-Storage: Watch our video “Self-Storage Investing 101.”

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