The annual revenue of the Self-Storage industry is estimated to be $38 Billion which is at par with huge franchises like Starbucks, McDonaldโs, and Subway combined. With self-storage proving to be a lucrative business with a high potential for passive income, more investors are getting into the industry. The question you may have in mind may be: Is it too late? Is self-storage still profitable?
The demand for self-storage is at a steady 10% of the household population. The industry is proven to be recession-proof given how self-storage will always be a need whether it be that a person is downsizing, growing into their next life stage, starting a business, or moving.
As Forbes put it, “There are several factors that are driving the self-storage industry higher, including growing urbanization, increased downsizing from the coronavirus, lifestyle changes, and more. While there are many things that affect real estate performance, self-storage is influenced by the transition and trauma business. The industry often plays a role in people’s difficult life events. As a result, it is one of the most recession-resistant asset classes.”
Another factor that is driving the growth of the industry is how Real Estate prices are exponentially increasing. The cost per square footage in the US is becoming more expensive thus self-storage offers a cheap alternative to buying a bigger home.
With this size and steady demand, opportunities for revenue growth are immense.
Do you want to take advantage of this opportunity? Learn how to get started here.
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Resources:
https://www.storable.com/resources/learn/is-a-self-storage-business-profitable/