Self-storage area arduous to seek out in Miami, NYC, LA, DC, San Francisco
The coronavirus pandemic has changed people’s priorities in a variety of ways. Some made more time for family and friends. Others wondered what they would do if they could and then pursued their passions or made great careers. And for many, spending more time at home changed which living properties were important to them.
Let’s take a look at what some of these shifting home priorities are, and how – and perhaps more importantly, where – self-storage investors can benefit from them.
The way we live now
The sudden increase in remote working has pushed office space up on the must-have list. Being locked in with children around the clock made a large play area and / or distance learning area crucial. And some exercise enthusiasts set up a home exercise area during the shutdown and decided not to go to the gym after it reopened. And of course, all of these things take up a lot of space.
“Hey, I know! I can just use this completely empty space that I have, ”said almost no one. In most cases, a lot of things had to go somewhere to make room for all of these new spatial identities. And once closets, basements, and attics were crammed, people turned to self-storage units to store seasonal decor, adult kids’ items, infrequently used luggage or exercise equipment, and other items that they didn’t have room for but didn’t want Get rid of.
For many homeowners and renters, this shift in priorities has meant moving. Some learned that they could work remotely indefinitely and realized that they would rather live elsewhere. To others, the city they once loved suddenly felt cramped and crowded, and they packed up and headed for the suburbs.
After a move, people often store things they think they can make room once they settle in. Sometimes it works, but often these things just don’t have a priority and stay in the warehouse for a while.
The cities with the greatest storage needs
Before investing in self storage, it is important to research the market. The houses in some subway areas tend to be larger and have more storage options such as garages, attics, and basements. Some of the options may have fairly cramped living spaces, but have plenty of on-site storage space to store items that residents don’t want in their living areas. And other cities tend to combine limited square footage per person with no real storage space on-site to compensate for this. The latter is especially where self-storage investors want to turn their attention.
STORAGECafé recently put together an analysis of U.S. Census and Yardi Matrix data that shows who is having trouble organizing all of their home belongings and who is having trouble. These are the five U.S. cities where on-site storage along with the surrounding metropolitan areas is the hardest to come by:
- Miami
- New York City
- The angel
- Washington, DC
- San Francisco
An interesting, if not entirely unexpected, observation is that the coastal metros tend to lack storage space. Residents of inland metropolises like Atlanta, Pittsburgh, Denver, and Phoenix usually have a lot more storage space available.
The millionacres bottom line
While many real estate sectors have struggled, the pandemic has created some unexpected bright spots. For investors in the right metropolitan areas, self-storage deserves a place on this list. Whether you’re starting a self-storage facility yourself or looking to invest in one through a Real Estate Investment Trust (REIT), exploring these locations where self-storage is paramount could be a good start.
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