Section 2 • Economics & Demographics
that of post-boomers and 61 percent greater than pre-boomers’
income. Baby boomers also out-
spend other generations on consumer goods and services by an estimated $400 billion each year, and they outspend younger adults by 2:1 online. Baby boomers have accumulated more pos-
sessions than any previous generation, and sim- plifying their living arrangements are priorities for the future, according to a Self Storage Association study. They are going to need a place to store all those possessions and family keepsakes they plan to hold on to. Boomers plan on passing their pos- sessions along to their children as the primary rea- son to keep or store these items. Older boomers are more likely to be experi- encing life transitions that may lead to a need for self-storage, such as children moving out, attend- ing college, or getting married. Significant for the self-storage industry is that
more than half of the boomers surveyed expect to relocate to a smaller home at some point.
Table 2.4 – Top 10 Metros for Millennial Population Growth (2012 - 2013)
Change in 20-34
Rank U.S. Metro 1
2 San Antonio, TX 3 4 5 6 7
Honolulu, HI Denver, CO Seattle, WA
8 Houston, TX 9
10 Orlando, FL Oakland, CA
Colorado Springs, CO Peabody, MA
year-old population 3.20%
3.00% 2.90% 2.80% 2.50% 2.50%
Cape Coral-Fort Myers, FL 2.50% 2.40% 2.30% 2.30%
Source: U.S. Census Bureau/Trulia
Table 2.5 – Top 10 U.S. Growth States With More Than 20,000 Families Moving (January - December 2013)
Rank State 1 Florida
2 Texas
3 Washington 4 Louisiana 5 Arkansas 6 Colorado 7 Tennessee 8 Kentucky 9 Indiana 10 Ohio
Source: U-Haul International 44 Self-Storage Almanac 2015
Percentage Growth 4.85%
4.40% 3.19% 3.16% 2.18% 1.69% 1.24% 0.61% 0.52% 0.46%
One-third of boomers plan to relocate to a different region such as Florida, Arizona, North Carolina, and California. The Administration on Aging reports that the proportion of seniors varies
considerably by state. In 2011, 51 percent of those 65 or older lived in nine states: California, Florida, New York, Texas, Pennsylvania, Ohio, Illinois, Michi- gan, and North Carolina. Additionally, Massachusetts, New Jersey, Virginia, Georgia, and Arizona are home to approximately one million seniors each.
Boomers are purchasing RVs as a vacation option and this new generation of RV storers is expecting
a different level of service than previous generations who were content to park on gravel lots. Covered parking and executive packages are among the offerings for boomer RV owners.
It is not only the size of their population and the fact that they will live lon-
ger, but because they possess more than any generation, baby boomers are going to save and store more. Atlanta, Ga.-based Universal Storage Group has tracked the ages of tenants
at their facilities since 2003, when only 32 percent of the customer base was age 46 or older. That number rose to more than 60 percent over the decade. As boomers continue to age, self-storage facilities must be increasingly
mindful of their particular needs. Personal safety and the security of their pos- sessions are top of mind for many boomers, and operators are responding with sophisticated surveillance systems and multiple intercom stations. Universal’s newer facilities include features that make older customers feel
safer, including automated lighting and see-through glass at entryways. Ac- cessibility features will become increasingly important at self-storage facili- ties. Universal’s new stores include multiple counter levels with a wider over- hang to accommodate wheelchairs, and eight feet or more of seating area so customers can sit comfortably while conducting business. Aging baby boomers represent a potential for new revenue that hasn’t gone unnoticed by the RV storage industry. The Recreational Vehicle Industry Association (RVIA) reports that baby boomers between 55 and 64 now repre- sent the highest RV ownership rates. RV sales were predicted to rise to over 300,000 new units in 2014. Boomers are purchasing RVs as a vacation option and this new generation
of RV storers is expecting a different level of service than previous generations who were content to park on gravel lots. Covered parking and executive pack- ages are among the offerings for boomer RV owners.
Millennials Are Suburbanizing The younger millennial generation, which numbers over 80 million strong by some demographers, is beginning to use storage as they accumulate more possessions. San Francisco-based Trulia conducted a study to look at where today’s
generations are moving. The Census 2013 population estimates by age group reveal which local areas are gaining or losing millennials, boomers, and other age groups. Between 2012 and 2013, population growth for 20-34 year-olds (millennials) was highest in Colorado Springs and San Antonio, while Austin and Raleigh were tops for 50-69 year-olds (boomers).
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