Self-Storage Companies - US and Canada
Delivered January 18, 2020. Contributor: Amy R.
Goals
To develop an informed marketing communications strategy by understanding key drivers that lead to the use of self-storage solutions. The current objective is to identify 5 drivers for self-storage in Canada and/or the US supported by quantitative data related to the frequency and share these reasons hold.
Early Findings
Designated Temporary Living
- Military families/singles and college students are top self-storage customer sectors (due to their temporary living circumstances).
Foreclosures/Transient Circumstances
- While it did occur several years ago, the subprime crisis and subsequent foreclosures (displaced families) boosted demand for self-storage.
Millennials
- While millennials have been slow to become homeowners, their status as renters aids self-storage use.
- As millennials age, this cohort (80 million) represents 1/3 of all non-commercial self-storage renters. This is expected to rise as millennials enter ages where they are inclined to earn more income.
Low Rental Vacancy Rates
- In US areas where it is hard to find an affordable or accessible location (especially considering millennials’ desire for more exciting metropolitan areas), the use of self-storage tends to increase.
Additional Facts
- According to research from Deloitte, today’s self-storage owners “face challenges to their future growth and margins due to increased supply and competition from new players.”
- “The self-storage national vacancy rate rose 180 basis points to 13.4% in 4Q18, the highest since 4Q13.”
Research proposal:
Only the project owner can select the next research path.