ltimately, whether you’re forecasting market performance using supply data, market rents, or identifying the next demand boom, success hinges on how well you interpret the data. For self-storage operators, monitoring mobility and equity trends—factors outside the typical storage sector—can also be critical. These trends shape demand as consumers relocate, remodel, and tap into home equity. By understanding the relationship between housing and mobility, the industry can better navigate the forces driving self-storage demand today.
The self-storage industry is intricately linked to the housing market, and recent years has definitely proven this. In the SSA’s 2022 Self Storage Demand Study, residential customers were asked about their reasons for renting self-storage units. Surprisingly, the percentages added up to 171 percent, not 100 percent. That’s because survey participants could choose multiple reasons. Of the 13 possible answers, eight revolve around one common theme: mobility.
For instance, “don’t have room at home” often overlaps with “storage during remodeling.” In fact, around 25 percent of remodeling projects occur within the first six months of a home sale, frequently dovetailing with “storage while changing residences.” These overlapping drivers underscore how tough it is to pinpoint exactly where demand originates; mobility-related needs come from many angles and are constantly pouring over from one bucket to another.
Turning to broader housing trends, we’re seeing home listings creep back toward pre-COVID norms. Part of that comes from unsold listings piling up. We’re at the highest level of home listings with price reductions since the Global Financial Crisis. Multifamily vacancies are also rising nationwide, with rents dropping in many markets. While only two of 26 housing experts forecast overall price drops through 2025, there’s still logic in the assumption we will see capitulation in both home prices and rent, making way for incrementally increased mobility. U-Haul’s latest financial reports noted a nearly 5 percent increase in their moving supply rentals.
On the flip side, homeowners today are sitting on a wealth of equity. Adjusted for inflation, they have about $400,000 in average home equity—far above the previous peak of $275,000 in 2005. Even if home prices were to drop by almost 22 percent, that would still outpace the 2005 peak. It’s a staggering amount of untapped equity. That point clarifies why 75 percent of home buyers today are repeat (existing) homeowners, compared to the 55 percent share pre-COVID.
The point is: There’s no shortage of data, but data alone isn’t valuable. What truly matters are the interpretations and decisions made from it.