Self Storage Customers

Self Storage for Residential Customers

Generally associated with life events, the self-storage industry is equipped to respond to people with changing housing situations, whether that means moving, downsizing, welcoming a new baby, or embracing multi-generational living. Lifestyle choices are also a demand driver for self storage, including preferences for snowbirding, digital nomading and RV traveling.

The residential sector comprises the largest market for mini warehouse and self-storage service demand in 2022. Accounting for an estimated 69.9% of industry revenue, the segment can be broken down further into long-term rentals of greater than six months (48.9% of revenue) and short-term rentals of less than six months (21.0% of revenue). According to the Self-Storage Almanac, the typical length of occupancy for a residential customer is 12 to 18 months. The residential sector stores a wide variety of goods, including furniture, vehicles, collectibles, sporting goods, business files, appliances, seasonal goods and more. Consumers in the residential sector will typically rent storage due to a major lifestyle change triggered by a variety of events, including marriages, divorces, new jobs, a purchase of a new home or retirement. Increasing demand from residential customers from most, if not all, of the major life events previously noted has enabled operators to increase long-term and short-term storage rates, boosting the proportion of industry revenue contributed by both markets over the past five years. This segment is expected to increase over the five years to 2026, as a result of an increase in overall changes in housing and rental patterns amid the COVID-19 (coronavirus) pandemic.

As consumers move into temporary housing, in addition to temporarily keeping items in storage, demand from this segment has increased.

Texas Major Markets

Houston

Looking at the type of residential customers that the Houston self storage sector serves, it caters to both renters and homeowners, acting as extensions of their homes when living spaces are not big enough for the things people own.

Houston is home to 499,608 renters and 375,219 homeowners. The average apartment size in Houston is 881 sq. ft. and the average Houston home size is 1,742 sq. ft.

Dallas

Looking at the type of residential customers that the Dallas self storage sector serves, it caters to both renters and homeowners, acting as extensions of their homes when living spaces are not big enough for the things people own.

Dallas is home to 307,837 renters and 216,661 homeowners. The average apartment size in Dallas is 849 sq. ft. and the average Dallas home size is 1,520 sq. ft.

Austin

Looking at the type of residential customers that the Austin self storage sector serves, it caters to both renters and homeowners, acting as extensions of their homes when living spaces are not big enough for the things people own.

Austin is home to 215,383 renters and 179,897 homeowners. The average apartment size in Austin is 863 sq. ft. and the average Austin home size is 1,832 sq. ft.

Self Storage for Business Customers

Alongside the residential sector, self storage responds to needs arising from conducting business. Entrepreneurs and small business owners, including brick-and-mortar retailers, can turn to self storage to store their merchandise all while keeping it accessible.

Legal and medical professionals often turn to self storage as they are generally required to keep hard copies of their records. Realtors and interior designers also find self storage particularly useful for temporarily storing staging furniture. Moreover, blue collar businesses can benefit from storing their heavy equipment and supplies close to their work site.

Source: Self Storage Cafe 2023