According to a recent report from market research company IBISWorld, the self-storage industry was generating about $32.7 billion in revenue as of 2016, and that number is expected to grow by about 3.5% each year between now and 2022, for an overall increase of about 17.5% in just five years. The group assessed the total amount of facilities, square footage, units, and other data relevant to cost per unit and revenue stats from the industry’s leading self-storage providers – Public Storage, Extra Space Storage, U-Haul, CubeSmart, and Life Storage.
Nearly 10% of Population Rents Self-Storage Unit
Right now, there are about 2.6 billion square feet of storage space in the United States. Even with all of that space, it is startling to think that only about 10% of U.S. households rent self-storage. Considering the fact that about 43% of Americans are renting their primary residence, it seems that there is plenty of room for growth in an industry that is not yet catering to a large portion of its potential market. Such growth is apparent from the likes of databases like Self Storage Finders and other services designed to help people locate ideal storage services in their areas.
There are More Than 50,000 Self Storage Facilities in the U.S.
With an estimated 54,000 self-storage facilities in the country as of 2015, that works out to about 8.5 square feet per capital. Analysts calculate that there isn’t currently enough storage space to accommodate the maximum potential of the market, which is why there are still plenty of new facilities being built and new franchisees are entering the playing field in anticipation of the continued expansion. At the moment, Public Storage is the most widespread national chain, with more than 2,300 locations as of December 2016. Extra Space Storage is the closest competitor with 1,427 facilities and counting.
A Look at the Most Popular Unit Sizes in the U.S.
Not surprisingly, the standard 10×10 units are the most popular. These account for about 23% of all currently rented units. The larger 10×20 are the next-most popular with about 20% of the distribution, followed by the 10×15 spaces which account for about 14% of all spaces rented. The average cost of a 10×10 space is about $96 per month, which brings the average annual cost for the most popular storage space to about $1,200 for the year after applicable fees and taxes.
Factors Driving the Popularity of Self Storage
Of course, as the population increases, we’ll undoubtedly see more people using self-storage to accommodate all of the extra possessions that come with a growing family. Many families and businesses have had negative experiences related to losing their belongings in the past, and as time passes more people are learning the importance of always having a self-storage unit available for backup. The self-storage unit market is also highly competitive at the moment, so there are plenty of ads and special deals that are inspiring consumers to rent storage units in their local area.