Over 20 Percent of Americans Use Self Storage, Are You One of Them?

ohno

2 years ago

People have an attachment to their ‘stuff’ that seems to be worth more than money.

We had a unit around 25 years ago and after about a year I asked the wife would you pay $1,000 for this crap that we still haven’t used? If not, then it doesn’t make much since that it will cost us 2k in another year, right? Thankfully she agreed.

For instance, my brotherinlaws gf bought a new electric bed for around 3k, kept it in $100 a month storage for almost 2 years, then decided to sell it to me for $500 after not being able to get anymore for it anywhere she advertised it all because the brotherinlaw didn’t like it.

Asides from that, the storage business is booming in my area and they are getting bigger and bigger and have taken over closed businesses like one of our grocery stores and a Kmart.

They have a strategic use but I dont think that’s how they are used most of the time.

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VAStorage

2 years ago

I purchased a small (<150 units) storage facility about 7 yrs ago. The idea was to make it my pension since my current employer got rid of theirs 16 yrs ago. Currently, it has been one of the best decisions I’ve ever made. And what an interesting ride…

You cannot generalize who uses storage, but here are some of the more common needs:

– Building a house and need the space until that is finished

– Moving to the area and looking to buy a house (similar to building)

– Just evicted. Yes, sometimes that same day/evening

– Parent(s) recently passed and the house needs to be cleaned out to sell

– Business owner needing the extra space for supplies

– Hoarder or just can’t part with “good things”

– Recent separation or divorce and moving into a smaller place

Lien auctions are almost every 3-4 months. It still surprises me what we find when the lock is cut. From the lone worthless couch in a $65/month unit for years to the entire contents of a small house neatly and carefully packed but the customer disappeared.

I often recommend to customers to try to sell it all ASAP. Self storage can become a trap. Out of sight, out of mind. Just pay the monthly bill and you don’t have to face the challenge of sorting through it all and guilt of disposing of your parents memories. Everyone is different. Some can do it, some can’t.

Locally, I have yet to meet a drug lord. The builders of new facilities today are the same people putting up the nearby condo, apt, or housing development. They have figured out a very profitable business model. Build housing with little extra space and sell storage by the month right down the street. Perfect.

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TexasTim65

2 years ago

Storing for years absolutely does not make sense. You should be giving it away unless it’s incredibly valuable.

On the other hand, many people rent for a month or two when they are moving and one home closes before the other does or they are moving long distance etc. That makes sense.

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astroboy

2 years ago

I agree that storage is for suckers. On the other hand, I have relatives who moved from a 5000 square foot house with a basement, three car garage, every bit of space packed to the gills with expensive (and nice) furniture and other junk, to a 1400 sq ft place, no basement, one car garage (long story). Except for narrow pathways, the place is packed to the ceiling with boxes. I mean, a real hoarder floor plan. They’ve been living like that for two years, three to go. They could easily afford to put all that crap in storage; I’m a tightwad but to me it would be worth it just to avoid the claustrophobia. Oh well. They are frugal, I have to give them that.

There must be real money in storage. A really big place went up where I live, you could have built 3-4 three million dollar houses on the lot. Too nice an area for a storage eyesore, not sure what happened to the zoning laws there. Seems like a good business to have, but I suppose you get a lot of calls at 3AM because someone can’t get into their bin since they’re using the wrong keys, or trying to get into the wrong bin.

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babelthuap

2 years ago

I worked for Uhaul in college. Uhaul made no money renting trucks. They made it selling boxes and storage. The storage is sad because as many have stated it’s the ignorant and poor. I use to see the dumbest things in them like a piano burned in a fire. Why? Impossible to get the smell out of burned wood. And lots of kitsch art bought at truck stops…meh. Oh, and illegal stuff like stolen cars.

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A Dose of Reality 5

2 years ago

The ultimate in `Self’ storage.

Right to the dumpster. Skip the storage rental.

Gives new meaning to dumpster diving.

https://www.cnbc.com/2023/04/29/28-year-old-pays-62-a-month-to-live-in-a-dumpster-he-built-for-5000-in-london-take-a-look-inside.html

I just won’t buy it. Or I will throw it away first.

Used once for college. Between dorm stays. Cheaper than moving it home or buying all new stuff next semester.

I would rather invest it.

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Casual_Observer2020

2 years ago

I think most self storage places are fronts for Mexican drug money laundering. These places keep being built and you rarely see anyone go in or come out with actual stuff. I think even some of the people who store stuff are involved in the operation to make it look legit. Storage is also great to move large quantities of drugs like fentanyl.

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Zardoz

2 years ago

Reply to Casual_Observer2020

The stuff goes in. It doesn’t come back out.

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Zardoz

2 years ago

Storage units are landfill waiting rooms.

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Avery

2 years ago

When the last X-er takes the last hearse ride, who is going to want the pre 1980 ‘collectible cars’?

Many more examples.

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Lisa_Hooker

2 years ago

I am not using external storage, nor am I considering.

But I should.

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Doug78

2 years ago

This is the reason I am careful to throw things away.

https://i.pinimg.com/564x/01/3c/cd/013ccd20e0a4b5accfca7543ebaeda84.jpg

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Fish1

2 years ago

A friend owned a 400 unit self storage business. She always howled at the worthless crap that would be exposed when payments ceased. Back issues of magazines, old Tupperware, particleboard credenza, old clothes etc. Just get rid of it.

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MPO45v2

2 years ago

People do dumb things with their money and storage is probably the dumbest. Paying money month over month to store stuff of questionable value is absurd. You may as well pay to store your garbage too!

Having said all of that, one of the small bedrooms in our house was turned into a storage unit. there are tubs from floor to ceiling of various things my spouse stores in there mostly seasonal stuff that gets brought out once a season. I’ve begged for those items to get donated, sold or trashed given we don’t have young kids anymore so no point in putting out balloon Santa outside but it’s still sits there year after year.

People storing their cars outside exposed to the elements and criminals while keeping junk in the garage is another stupid idea that ends up being far more costly that most people suspect.

From an investors point of view, storage REITS (Tickers: PSR, EXR, NSA) have done well for the past few years but will it continue in a recession?

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Call_Me

2 years ago

You missed a key point:

The conclusions of this ”survey” are not statistically valid. The sample population is far from representative of the U.S. as a whole.

For those curious about the methodology:

“Our findings are based on a survey among 17,900 respondents in the
United States that ran for a month on the rentcafe.com,
propertyshark.com and storagecafe.com websites.

The data for our analysis of self storage searches was obtained by
extracting monthly-average numbers from Google Ads of nationwide
searches using city-specific key phrases. This was carried out for
around 150 key cities in the U.S. for the course of 2022. Other
city-specific key phrases were used to find numbers of searches for
specialist storage unit types for cars, vehicles, RVs and boats.

Self storage street rate data was obtained from Yardi Matrix,
StorageCafe’s sister division and a business development and asset
management tool for brokers, sponsors, banks and equity sources
underwriting investments in the multifamily, office, industrial and
self-storage sectors.”

Call_Me_Al

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backhousepirate

2 years ago

Reply to Call_Me

You are correct of course about the method of data collection, but I needed a unit to do some wood working projects and could not find one in our area. There are a lot of these places and the only units they had available were 5 X 5. As many as there are around I would have thought they had plenty of capacity. Every storage facility offered to put me on their waiting list. If I did have a bunch of junk I didn’t want but couldn’t bear to part with I don’t think I’d hold on to it and wait for a call, would you? How much of our problems are the result of a bad economy and how much is bad life decisions?

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Sunriver

2 years ago

Usually the garage is used for excess storage first. The cars move outside. Then the storage unit is purchased for the Made in China stuff people hoard and don’t need.

Then there’s RV trailer parking.

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Felix_Mish

2 years ago

Look at what you have around the house.

Did you use it in the last year or two? Keep it.

Will you use it at a predictable time in the future – like every 5 years? Keep it.

Must you legally (in effect) have it – like tax records? Keep it. If it can be made in to computer data, see below.

If you die, will any of your heirs want it? Keep it (or give it to them now, if appropriate).

Does it bring you joy? Keep it.

Do you just want it and can you convert it to data on your computer – books, magazines, pictures, music CDs, DVDs, paper records, trophies, things you can take acceptable pictures of with your phone, etc? Keep it on your computer. See below.

Still have it? EBay, GoodWill, your local library, friends or neighbors, whatever. Spread the wealth.

Still have it? Toss it.

Rinse, repeat. I found I did this process on everything I own 3 or 4 times over the course of a decade to get my things in a reasonable state.

Note: One of my kids pointed me to Marie Kondo when I told him this method. She also discovered the “joy” question. I’m not exactly a 30-something Japanese female, so conclude the joy question can be used by pretty much anyone.

Computer data: Scan all paperwork you still get in the mail or pick up in daily life. A phone’s camera does an OK job. Include copies of all medical information. E.g. X-rays, blood tests, DNA scans, etc. Keep emails forever. Put copies of all your data on a couple USB drives (the current, 2023, storage technology). Get newer, larger, up-to-date storage every 5-10 years or whatnot. Keep one copy at a friend or relative’s place for fire-resistant, super-safe keeping. You can ping pong two drives between your space and off-site storage every day/week/month.

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Lisa_Hooker

2 years ago

Reply to Felix_Mish

Now how do you get some of the data off of these old 8″ floppy disks?

Just asking for a friend.

(Then there’s those DAT format data backup tapes.)

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Felix_Mish

2 years ago

Reply to Lisa_Hooker

Ha, ha. Yeah, I tossed my 8″ floppy drive (but not the IMSAI, by God, that’s for the kids!), in a purge a few years ago. So, can’t help.

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Siliconguy

2 years ago

Reply to Felix_Mish

Keep emails? I delete them after 90 days, anything tagged as spam after a week.

I had lots of room, but then the kid boomeranged. I have all of her stuff packed in now too.

Renting a storage place may be a necessity, local housing is as stupid here as other places.

I’ve rented storage in the past to stash stuff while in the process of moving or going back to school. It wasn’t permanent.

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Jack

2 years ago

Most families who have been posted overseas a few times quickly realize that you only need a few possessions that fill a few boxes.

If you do not use something for 12-18 months then you do not need it. All this extra stuff is a burden or a weight on your freedom.

Who has time to manage having stuff in a storage unit anyway? Life is too short.

However I have been contemplating opening up some storage units as more and more people are using them to store all the extra stuff they do not use.

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Archie Poshington

2 years ago

Yes! Similar- I sorted stuff for 6 months while we waited to move from an apartment to a house. After a few months I realised the whole lot could burn down and the only thing I’d miss was a child’s car seat I had in there. Just downsize.

But it seems humans just are not capable of that. Check out Big Yellow, listed in London.

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klausmkl

2 years ago

Some folks are living in storage sheds. They sneak out during the day,then return to sleep at night. Its cheap. Living in a storage shed is a distinct reality for many in the progressive era we live in.

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Casual_Observer2020

2 years ago

Reply to klausmkl

Yep. I think this is happening along with the money laundering and movement of illicit goods.

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Dr Funkenstein

2 years ago

That’s why so people people live paycheck to paycheck…they buy stuff they don’t need and then pay to keep it away from them. As Frank Zappa said…dumb all over, a little ugly on the side. Then again Zappa said tobacco was a food to him.

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meepbobeep

2 years ago

I was gonna be a smartass and say… “self storage? yeah, it’s called my attic”

I’ve used the rental storage once for a very short period between residences. It was 3 months at most. That’s the only reason I’d use rental storage. If it was for a period of years, then yeah, I agree. Downsize.

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Cabreado

2 years ago

I’ve come to realize that Life Storage Inc. is one of the greediest operations on the planet.

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hamsaplo

2 years ago

Brilliant. I stored stuff (a lot of stuff) for 6 years while I took an assignment in Asia for 6 years. Company paid as I had sold my house in anticipation of a long stay. When I came back, I quit my job, moved half way across the country, and gave the stuff to a friend who used some of it and chucked out the rest. What do you do with appliances that are 6 years out of date? Chuck’em!

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shamrock

2 years ago

I always wondered about the economics of putting replaceable items, like furniture, into self storage. If there is $10k worth of furniture and the storage unit costs $4,000 a year, it doesn’t take that long to be under water, especially if you could have sold the stuff for 50% of it’s value.

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Over 20 Percent of Americans Use Self Storage, Are You One of Them?

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Over 20 Percent of Americans Use Self Storage, Are You One of Them?

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