The self-storage (industry that rents storage space) and multifamily markets are interconnected. For example, shrinking home sizes, coupled with moving, lifestyle choices and downsizing, represent the main drivers of the self-storage industry. This is an industry that has grown to capture 1.5 billion square feet in the U.S.
Furthermore, self-storage represents one of the fastest growing areas in property, much of it fuelled by innovations in technology.
Digital technology has been harnessed to provide customers with more control over their use of self storage spaces, such the introduction of improved websites for reservations, dedicated apps for viewing storage facility cameras, easier means for making payments, and by organising the pickup and delivery of items to and from homes or offices.
The company RENTCafé has taken a look at the U.S. metro areas that have added the most square footage of self storage in the past decade.
This analysis finds that overall, the U.S. added over 295 million square feet of self storage between 2011-2020. This reflected construction booming near the closing years of the decade, something largely supported by consistent multifamily development.
Among the one hundred biggest metropolitan areas, Dallas has built the most self storage space in the past decade, roughly 16.2 million square feet. This stands at double the stock added by Miami.
Furthermore, Dallas-Fort Worth stands as the fastest-growing market in the U.S. The area also added 173,000 apartment units. This figure surpasses New York, Houston and Chicago in both respects.
New York has also made the top 10 markets for new self storage deliveries. However, the consensus is that the market remains largely undersupplied. As things stand, there is now 3.3 square feet of self storage space per capita in the New York metro area. As a sign of underutilized space, this stands well under the national benchmark of 7 square feet per person.
In terms of growth rate, Milwaukee, WI, has seen a 68 percent increase in self storage stock, the largest inventory expansion of the decade.
In terms of the top ten for self-storage, this is:
- Dallas
- New York
- Houston
- Chicago
- Phoenix
- Atlanta
- Miami
- Denver
- Austin
- Washington, D.C.
Looking into this trend for Digital Journal is Doug Ressler, Business Intelligence Manager at RENTCafé’s division Yardi Matrix. Ressler explains: “The anticipated return to the office will most likely favor self storage. As restrictions start to get lifted and people get back to work, we can expect to see greater storage demand especially in urban centers like San Francisco and New York City as renters maximize residency in smaller units, which will create a greater need for separate storage facilities.”
