Section 3 • Economics & Demographics At the lower end of the spectrum, approximately 13 percent
indicated that their annual household income fell below $20,000. This category may comprise students, senior citizens, and apart- ment dwellers.
A market where income is high may warrant specialty storage
such as wine storage and a higher percentage of climate-con- trolled units that command premium rents. In lower income areas or where student housing is prevalent, facility owners may want to have a higher percentage of smaller units and fewer climate- controlled spaces.
Knowing the residential makeup of a customer base is extreme-
ly important—especially when it comes to marketing to potential tenants. On a national basis, 27 percent of customers surveyed live in an apartment or condominium unit. According to SSA, the ma- jority of storage customers—approximately 68 percent—reside in single-family homes. See Chart 3.4 on the previous page.
Only 30 percent of student renters reported living in single-
family dwellings. That number more than doubled for military renters at 76 percent. And while 59 percent of student tenants re- side in an apartment or condo, that number drops to 22 percent for military renters as seen in Charts 3.5 and 3.6 on the previous page.
Drivers Of Self-Storage While every motivation is unique and customers may search for offsite storage for multiple reasons, the Number 1 reason residen- tial tenants seek to rent a storage solution is lack of space.
More than half of all customers (53 percent) said they
lacked the space to store items at their homes, compared with 16 percent who indicated they were storing items they no lon- ger needed or wanted. Relocating was also a major driver for self-storage with 41 percent indicating they need temporary storage to house items while in the process of moving.
Three main drivers bring student renters to self-storage fa-
cilities: relocation, lack of space, and excess, unneeded items. Nearly half (48 percent) reported needing temporary storage while relocating for school. Approximately 47 percent of stu- dent tenants indicated they did not have room at their current residence to store all of their personal belongings. An addi- tional 42 percent said they were storing extra items they did not need while at school as seen in Chart 3.8 on the next page.
According to the SSA survey, 59 percent of military tenants
reported they need temporary storage while changing resi- dences. Likewise, 51 percent reported storing items they did not have room for at their residences as seen in Chart 3.9.
Millennials, Boomers, And Storage Gravitate To Metros Demographics generally favor self-storage as the population grows and the supply of new facilities lags. Storage experts say the U.S. will need approximately 400 to 500 new self- storage properties each year just to keep up with demand and population growth. The U.S. population is expected to grow to more than 335 million in 2020 from its current estimate of 320 million.
Chart 3.7 – Reasons for Renting
Storing Items from Vacation Home Due to Natural Disaster
Items Require Controlled Environment Temporarily Away from Residence Had a Baby
Have College Student's Extra Belongings Other
Changes in A Relative's Living Situation Inherited Items Due to Death Remodeling Residence
Don't Have Room for Items at Residence Need Temporary Storage While Moving Have Items Not Wanted or Needed
0 10 20 30 40 50 60 42 Self-Storage Almanac 2016
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