here are plenty of long-term investment opportunities in real estate, but investing in self-storage opportunities remains one of the more lucrative prospects, especially in college towns. Among many suitable markets, college towns stand out as a golden opportunity for owners and investors. Coupled with seasonal trends, the continued demand from the local populace and students makes these locations especially attractive.

Colleges also provide a steady influx of new clients each year, making self-storage a viable long-term investment opportunity. This article will explore why college rentals can be a great opportunity for self-storage investors.

Students, professors, and locals always need additional storage space. Many students don’t have enough storage in their apartments, rental homes, or dorm rooms for seasonal clothing, sporting goods, recreational equipment, and other objects they don’t want to leave at their childhood homes.

Plus, the educational landscape of the United States is geographically dispersed. If you want to invest in self-storage opportunities in college towns, you’ll find over 5,000 universities and colleges nationwide.

One of the main reasons this area is fertile ground for self-storage investments is that most students go home for the summer break. However, many don’t want to drag their belongings back home, so they look for self-storage during the summer. Since there are always new students, each year brings a steady stream of dependable demand.

Universities and colleges are dependable employers, but they’re far from the only ones in their areas. The existence of a college generates an entire microeconomy of nearby services and products for students. Depending on the specifics of each college, other industries may naturally congregate around it. Great hospitals are often found near high-end medical schools and tech startups are usually based near engineering colleges.

This variety of available high-paying positions results in a local population with plenty of purchasing power and disposable income. For self-storage investments, this is a positive sign for two reasons.

First, locals have enough money to rent self-storage units without issue. Perhaps more importantly, a strong local economy means more consumption overall. People buy more things on average, increasing the local demand for additional storage.

Since strong local economies are important for self-storage businesses, it’s great that universities are great economic drivers. Besides county seats and state capitals, they’re some of the most potent economic drivers for their surrounding area.

More people are attending college than ever, which means consistent (and rising) demand for housing in the nearby area. As a result, real estate prices are generally high in college towns, especially if the supply is low and there isn’t a lot of new housing.

This results in expensive real estate in the area. And while this can be problematic for students, it’s great for self-storage investors. With higher property prices, there’s a lower chance you’ll encounter too much competition. Fewer people can afford to construct storage facilities.

On the other hand, expensive real estate also encourages homeowners and renters to maximize the use of every square foot. You can’t afford to waste space when you can’t afford a huge home. That also drives up the demand for self-storage in the area.

Self-storage services are quite widespread among students in the United States. Per NSA Storage research, more than 55 percent are renting self-storage or have done so, which confirms the microeconomic logic laid out previously.

Interestingly, most college students who use self-storage attend school in their home state, even though their parents’ houses are usually within driving distance of their colleges.

It also seems that the practice is particularly common among West Coast students, as over 25 percent of all students who use self-storage are from that area. However, most users also opt for self-storage only for a short while, usually during a school break. In almost half of cases, students rent storage for less than three months.

From a marketing perspective, it’s important to note that parents are essential market stakeholders; in over 50 percent of the cases, they’re the ones paying for the storage. Also, pricing is the No. 1 deciding factor when students opt for a specific storage solution.

Besides affordability, over 60 percent of students who use self-storage appreciate safety and cleanliness, like most self-storage renters.

When choosing the right location for an investment, research the local competition and the proximity to relevant student populations. You should also consider other factors, such as the initial investment costs, maintenance expenses, and local regulations.

Regarding marketing, consider advertising on social media (specifically TikTok and Instagram) and using creative video content. You can also attract new customers with student-specific discounts.

Student populations are a potential gold mine for self-storage investors if you price your storage properly, market it professionally, and choose the right location.