Texas Self-Storage Facts

Since 2020, many Americans have discovered new needs, new desires, new possibilities and new priorities. People are looking for bigger homes, second homes, or any home at all. They’re searching for work or trying to escape work. Some fear encroaching heat, fire or flood. Others are repulsed by bitter local politics. Many simply hear the distant siren of a better life elsewhere. A better life in Texas!

Texas is bigger and bolder than the rest of the country and has a generous self storage sector to match — its large cities offer more square feet of storage space than almost anywhere else. And in addition to helping Texans enjoy their lifestyles to the max, the industry steps up to the plate in challenging times. This enhances its reputation for being both a valuable service and a worthwhile investment opportunity.

The modern self-storage industry got its start in West Texas and has been going strong ever since. As more and more people move into the Lone Star State, the demand for self storage has only continued to grow. 60 percent of self storage users are in the midst of some kind of relocation activity, which means that self storage is critical for those moving into the state.

Texas’s economy keeps residents renting self storage

Although the self storage industry has a reputation for resilience during downturns, it enjoys good times as much as any other. Recent Texas-related business announcements have included Elon Musk’s move to Austin, Oracle Corp’s intention to do the same, and retail giant Amazon’s plans for new sites near Houston, Austin and El Paso. And while the state’s legendary oil industry has taken a hit this year, its employees are tough and ingenious people, and with more demands now being made for environmentally-friendly energy, it has been reported that the Lone Star State is well-positioned to adapt its petrochemical plants to produce green fuels.

Texas’s welcoming attitude is seen in other ways as well. The supply of self storage facilities has been helped by lenient — or in some cases absent — building codes and zoning laws, allowing facilities to be constructed relatively easily. The state-wide zero income tax surely attracts businesses, and it is interesting to note that Austin and Dallas are rated as two of the three cheapest top US tech cities to live in. People with disposable income make good long-term self storage renters. And Texas remains a popular state, with a population increase of 15.3% from 2010-2019 that is only exceeded by Utah and Washington, DC, bringing new self storage customers who may need the service when moving.

The unadjusted unemployment rate for Texas was 6.6% in October 2020, a substantial drop from 7.7% in the previous month, way down from the peak it hit in April this year, and about the same as the national average. At the metropolitan level, rates in the areas centered on Austin and San Antonio were below the national average, at 5.1% and 6.3%, respectively, while those in the areas that make up Dallas-Fort Worth were between 6.0% and 6.2%. Among the state’s largest urban areas, only Houston-The Woodlands-Sugar Land had a higher unemployment rate percentage than the average across the country, at 7.7%.

Some of the reasons Texans love self storage

As Texas is a land of big open spaces

— rivers, lakes, and over 300 miles of coastline — outdoor sports fans can be encouraged to use self storage for their equipment. An angler can accumulate a lot of tackle, canoeing, rock climbing and horseback-riding all require specialist equipment, and windsurfers like to bring their own boards when making a trip to the coast. For enthusiasts who live in limited accommodation, a self storage unit is an ideal place to put all their gear. The same goes for ATVs, and larger recreational vehicles such as campervans and motorhomes can be parked at many storage facilities.

Properties do tend to be bigger in Texas.

In 2019, new apartments built in Houston and Fort Worth covered an average of 937 and 921 square feet, respectively, with only Jacksonville, FL, building bigger ones among the US’s largest cities. Dallas, San Antonio and Austin are also in this top 10. All these Texas cities’ 2019-built apartments are a bit smaller than those dating from 2010 — a trend also observed in most of the nation’s other large cities — meaning that storage space outside the home may be even more welcome now. While people with limited space use self storage for their possessions, a recent survey found that in fact those in larger homes are even more likely to use it.

Another reason Texans should love self storage is the weather.

The hot and humid summers mean air-conditioning is essential in homes, but how many garages, attics and basements are equipped with it? Heat and moisture can easily damage clothing, furniture, and many other precious things, so keeping such items in a climate-controlled unit is a great option. In addition, self storage is often found to be very useful in the aftermath of the hurricanes Texas is prone to, and some operators see good business sense in offering free storage to those affected.

How the Texas self storage sector is adapting and changing

Austin self storage operators report how their businesses can adapt to challenging circumstances and their clients’ changing needs. It seems that more college students are renting units, perhaps while they are living in limited space with relatives until they can move back into campus dorms. And more RVs are being seen on the parking lots as well: after a tricky start to the year, the RV industry may be booming again in Texas, with people preferring to take vacations with those closest to them and not risking flying or staying in hotels.

Managers in the San Antonio self storage sector report that there is plenty of competition but business is strong. Some of their new clients need storage while adapting to smaller accommodation due to changing circumstances, while others are military personnel or newcomers moving into town, as has always been the case. Again, a comprehensive range of health protection measures and top-quality customer service are proving to be key, while offering services such as package delivery, trash access and free locks have been found to be effective marketing strategies at this time.

Article written by Francis Chantree on StorageCafe. Visit the link below for original online publication.
https://www.storagecafe.com/blog/texas-big-state-offers-residents-most-self-storage/

Source: StorageCafe.com & SelfStorage.com

Interested in buying or selling a self storage property in Texas? Visit Lumicre’s Self Storage Sales Group page for Houston self storage brokerage sales advisory.