Economics & Demographics • Section 3 The self-storage REITs have set their sights on major metro


areas for expansion through acquisitions, conversions, and new builds. The millennial generation is maturing and setting up housekeeping in many of the metro areas the REITs are target- ing. In addition, retiring baby boomers also tend to gravitate to these areas where transportation and entertainment are read- ily available. Many residents in major metro areas live in smaller housing, requiring more external storage space.


The U.S. Census Bureau reports there are 83 million millenni-


als, or Generation Y, born between 1982 and 2000, and they make up a larger segment of the population than even baby boomers. It’s estimated that U.S. mil- lennials already account for $1.3 trillion in direct annual spending, a third of which is discretionary. Millennials’ buying power should grow dramatically as they mature in their careers.


Have Items Not Needed or Wanted Inherited Items Due to Death Natural Disaster Had a Baby


With the resurgence of


cities as centers of economic energy and vitality, a major- ity of millennials are opting to live in urban areas over suburbs or rural communi- ties, according to a Nielsen study. Sixty-two percent in- dicate they prefer to live in the type of mixed-use com- munities found in urban centers, where they can be close to shops, restaurants, and offices. They are cur- rently living in these urban areas at a higher rate than any other generation.


Austin, Texas, has the


highest concentration of this group—almost 1.2 times the national average. With the exception of Wash- ington D.C., the top mar- kets for millennials are in the western portion of the country, unlike their boomer counterparts who are most- ly concentrated on the East Coast. The growing young population in the Western U.S. will affect demand for goods and services in these areas.


Remodeling Residence


Need Temporary Storage While Moving Don't Have Room for Items at Residence Have College Student's Extra Belongings Changes in A Relative's Living Situation Temporarily Away from Residence Items Require Controlled Environment Other


0 10 20 30 40 50 60 Chart 3.9 – Military Reasons for Renting


Storing items that require a controlled environment Storing Items from Vacation Home Natural Disaster


Inherited Items Due to Death


Changes in A Relative's Living Situation Have College Student's Extra Belongings Have Items Not Needed or Wanted Remodeling Residence Had a Baby


Need Temporary Storage While Moving Don't Have Room for Items at Residence Temporarily Away from Residence


Other 0 10 20 30 40 50 60 70 2016 Self-Storage Almanac 43 An Urban Land Institute survey of 1,270 millennials reveals


that 50 percent of those surveyed are living in rental housing while 21 percent are living with family. For the foreseeable future, they will continue to reside near metro areas where living spaces are smaller and the need for storage is potentially greater.


While millennials tend to live in urban centers, many are


being attracted to suburbs that have adapted the concept of New Urbanism. These communities are pedestrian- and transit- friendly, environmentally conscious, and incorporate mixed housing types—single-family, townhomes, and apartments—


Chart 3.8 – Student Reasons for Renting


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