According to Mordor Intelligence, the global self-storage market is foreseen to grow from $48.02 billion in 2020 to reach a value of $64.71 billion by 2026, registering a CAGR of 5.45% over the forecast period. The growth is influenced by more players deciding to diversify into self-storage investing. Why are more investors choosing self-storage?
Historically, self-storage has performed well amidst crises. In 2008, Self-storage investment started to boom because investors saw how it continued to deliver consistent income while other real estate assets (multi-family homes, offices, and retail) were severely affected. This makes sense because when the economy is in a recession or in our case today, in a pandemic, people are downsizing which is driving a need for extra storage. In the pandemic specifically, there has been a rise in remote work and online classes for children thus the necessity for a home office has driven consumers to avail of self-storage for the added space.
On the other hand, when the economy is on a rise, people have higher buying capacity and with the ease of online purchasing and financing, people are accumulating more things that they would need storage for.
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