In the last few years, the housing market has shifted dramatically. Buying a home remains one of the most essential financial investments a person can make, but many people are left wondering if they will ever be able to afford it.
Today, California, like the rest of the nation, faces a housing shortage. In particular, small, entry-level homes are hard to find. This lack of supply has led to record-high home prices. As housing costs continue to rise, we are likely to see more people using self-storage facilities.
Types of Storage Needs
There are two types of storage needs: short-term and long-term.
Los Angeles self storage is most often used by people who are moving or downsizing and need a place to temporarily store their belongings.
However, there is also a demand for long-term storage for people who live in small apartments or small houses who may need to store their belongings for several years.
The housing crisis has impacted both short and long-term storage needs. Although there is an increased demand for self-storage facilities, we may also reach a point where self-storage facilities will no longer have enough storage units to rent out.
Storage Units to Choose for Your Household Items
Self-storage is now the fastest-growing industry in the state. Storage units for tenants allow people to keep their belongings safe and secure even if they cannot afford to keep their own homes. These have now become a necessity, rather than just a luxury, for many Californians.
The most common size of self-storage units is between 5×5 and 10×10, which is roughly equivalent to a small closet or half of a one-car garage. Typically, you’ll need a 10×20 unit if you plan to store larger items, such as furniture or appliances.
A few self-storage facilities offer climate-controlled units, which are kept between 55 and 85 degrees Fahrenheit. These have low humidity to protect stored items from damage due to heat, cold, or moisture. Look for a self-storage facility that offers climate-controlled units when storing items sensitive to changes in temperature and humidity.
How the Housing Crisis Plays into the Self-Storage Industry
According to a Los Angeles Times report based on a new poll conducted by the Public Policy Institute of California, nearly 55% of Californians are concerned about not being able to pay their rent or mortgages.
Due to rising housing prices, people have been forced to move into smaller homes or apartments. In addition, many people are opting to live with roommates or family. This too has pushed many people into using self-storage facilities, which provide a more affordable option for storing their belongings.
The housing crisis has caused the average cost of a home to jump up by more than 20 percent in the last year alone. As residential construction has slowed down, so have purchases of new homes. Fewer people moving into new homes means more people needing storage space for all their belongings.
Home prices have skyrocketed for a variety of reasons. Over the last decade, there weren’t enough homes being built to meet the demand from buyers. Then, as a result of the pandemic outbreak in 2020, this dire situation became even worse. Now, in 2022, the state is experiencing a labor shortage following the great resignation trend. Additionally, there are also higher material costs due to the global supply chain crisis.
We’re in the Midst of an Economic Seesaw
Looking at the big picture, it isn’t surprising that the storage industry has also been affected by the housing crisis. Currently, housing costs are causing a boom in the self-storage industry. While the housing industry is in deep trouble, the storage industry is flourishing.