How Each Generation Drives the Demand for Self-Storage

When wondering if now’s the right time to invest in self-storage, you may be inclined to look first at the current economic climate. Your return on investment is, after all, dependent on whether or not the demand for self-storage will remain high.

But the great news is, consumer demand for self-storage doesn’t always rely directly on the economic cycle. In fact, self-storage has a proven track record of being a recession-resistant investment. Why? Because beyond what’s happening in the markets or economy, there are reasons why consumers continue using self-storage at every life stage.

Let’s take a look at how each generation drives demand for self-storage.

Baby Boomers

Baby Boomers are either already in or nearing retirement. As the second-largest sector of the population (around 69 million), this means the need for senior housing is growing.[1] When those in retirement move, they typically downsize from the family home into either smaller condos, assisted living communities, apartments, or in-law suites. Of course, with downsizing comes the need to store their additional belongings and valuables.

Generation X

While Gen Xers only make up about 19.3% of the population, they are the most likely sector of the population to use self-storage. There are several reasons why this might be. As adults in their 40s or 50s, most Gen Xers are in or nearing their peak earning years. They have above-average income, which translates to greater buying power than both millennials (who are weighed down with student loan debt) and Baby Boomers (who are on a fixed income in retirement). Having more disposable income makes Gen Xers more avid consumers, and therefore more likely to need the extra space and have the ability to afford it.

Gen Xers are often referred to as the “Sandwich Generation” because many of them are “sandwiched” between caring for aging parents and raising their families (which may involve financially caring for adult children as well). It’s not uncommon for those experiencing this life stage to make adjustments to their lifestyle or living space to accommodate an aging parent/in-law moving in or an adult child moving back home. As a result, the need for self-storage arises.

Millennials

At 72.1 million, millennials make up the largest sector of the population (about 22%).[1] While they’re known for living in metropolitan areas and delaying homebuying, the onset of Covid-19 shifted priorities for many. With the growing popularity of remote work and rental rates rising in large cities, many millennials are more inclined to migrate to more suburban or affordable areas.

As they start buying homes, starting families, and gradually begin building wealth, millennials are quickly turning to self-storage to accommodate their changing lifestyles. In fact, it’s expected that over the next several years, millennials will replace Gen X as the largest group of self-storage users.

Generation Z

Born between 1997 to 2012, Generation Z consists of the youngest consumers and users of self-storage. Around 3% of all self-storage users in America are students, primarily using self-storage to conveniently store belongings between college semesters.[2] As Gen Zers age, however, it’s possible self-storage demand may grow amongst this group — especially as they begin relocating to new areas for their first jobs out of school.

Demand for Self-Storage Remains Strong

Self-storage is a recession-resistant alternative investment with a proven history of growth throughout various economic environments. Consumer demand is already high, and many industry experts expect it to continue rising as these larger sectors of the population age. To learn more about the advantages of investing in self-storage, join our Investor Portal. 

Sources:

[1] Resident population in the United States in 2023, by generation

[2] 2023 Self Storage Almanac