As the U.S. economy will likely continue its more than 10-year growth in 2020, the demand for self-storage space will follow suit. Marcus & Millichap’s report on the self-storage industry for 2020 delves into factors such as the growing demand for storage, the amount of properties being built and what investors are focusing on for this year.
The strong economy has brought a steady flow of job creation and wage growth that has bolstered household formation and consumer spending. While millennials generally prefer urban environments where space is limited, they also pursue equipment-heavy hobbies like kayaking or skiing that require storage. On the other hand, baby boomers who are downsizing also need storage space to preserve their personal heirlooms and belongings they want to pass down the generations. While the need for storage is high, the labor market is expected to hit a speed bump, slowing down job creation and household formation.