How Self Storage Thrives Off The American Dream
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- čas přidán 3. 06. 2024
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Self-service storage is an American phenomenon. While self-storage facilities exist in Europe and Asia, the business overseas does not come close to the scale and demand in the United States over the past decade. Self-storage is a direct monetization of American overconsumption so any bet on the industry is a bet that Americans will keep buying so much stuff that they’ll always need to rent extra space to store it.
In a time where the economy is contracting, institutional and retail investors are looking for defensive businesses that deal in essentials. Self storage companies have become attractive as stable, recession-proof, operationally lean lean real estate businesses where cash flows in every month, overhead is minimal, and the customers literally do all the heavy lifting themselves.
In this episode, we’ll cover the business of self storage, how the industry’s success rides on the death of the American Dream, how it all relates to skyrocketing home prices, wages stagnation, inflation - and how one company has remained the uncontested industry leader since the 1990’s.
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🎧 Audio Editing & Mixing: Sonalf
0:00 More Space for Life
8:06 The American Dream
11:55 Supply-Side Economics
15:58 Sponsor Intro
17:42 Sponsor Break
19:07 Leader in Fragmentation
23:40 A Lean Real Estate Startup
28:04 Big City Money
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Correction: The stat at 8:35 that 21% of Americans lived in urban areas in 1950s is not right - the correct number is 64%. The subsequent statistic that 83% of Americans living in urban areas in 2021 is correct. The underlying point remains valid as urban areas have had a significantly greater influx of Americans due to the necessity of work / clustering of industries. This greater demand in turn has only further strained transportation and housing in urban areas. Thank you to @samuelpenninga1468 for pointing out this error.
0:00 More Space for Life
8:06 The American Dream
11:55 Supply-Side Economics
19:07 Leader in Fragmentation
23:40 A Lean Real Estate Startup
28:04 Big City Money
Thank you
very glad u made the name change. More fitting and less doomer this way.
I’m
Honestly, I'm shocked by how poorly researched this video is, which is making me question the previous videos from your channel that I've enjoyed. In addition to this major statistic error, there's also the fact that the US census considers any territory with a population greater than 5000 and more than 2000 homes to be urban, which includes almost all suburbs. Also, home size overall has dramatically increased up until the 1950s. Overall, it sounds like you're heavily basing this off of your own bubble.
Not really, if your wrong number of 64% is wrong simply because at that time many aras in any given town wasn't yet developed...
Lot's of what has become city was actually farm land in my town this was true 20 years ago yet development did exsist in the 1950's!
I'm a manager at a storage facility. The amount some of my customers pay just for storage is astounding.... it's definitely motivated me to get into the minimalist mindset and get rid of junk. My husband and I rule of them is, if we don't use it in 6 months, we get rid of it bc we obviously don't need it...
100% agree. These units are a rip off
As a life long "collector" and someone who definitely enjoys her stuff, it's funny to see this comment repeated on this video. I manage a storage facility too, been working for one of the big ones for almost 10 years and it's definitely impacted how I view possessions and my relation to them. Stuff I would have hung onto in the past, I'm getting better about getting rid of it for the reason you just stated. One category they didn't mention was hoarders , who like it or not, are definitely part of our industry. When you have someone renting 6 , 7, 8 , 9 large units and they haven't even opened the door in years....hoarding. Then you just pray they don't die while you're running the place since you'll take the bad debt loss! LOL! Two things driving the industry : the Baby Boomers retiring, downsizing into smaller homes and hanging onto to stuff and homes being built with smaller closets to maximize sellable square footage. I get people who just bought a new home, but the closets are tiny.
@@catherinesanchez1185 yes! One of my tenants has 3 large units. Paying almost 500 a month for them. It's crazy. I don't want my kid or members of my family to have to go through all my crap. Working in this industry has definitely made me more mindful of what I keep and throw out.
Fellow manager here! I printed a tenant that has been here since 1986 their entire payment history. They started with one unit and then got another one in 2003. Just over $68,000 of collected rent for both units combined. Blew my mind.
@@philgillies4258 holy moly!! That's outrageous!
People often get storage units when they lose their home.
I can tell you nothing hits you as hard not having affordable housing and looking at your storage unit, your whole life sitting there in front of you. With nowhere to go...
Yeah I know that feeling first hand. Things for me have gotten better, but I never will forget the fear of facing homelessness.
After all that, I still consider myself lucky.
Same. I've been there too
Keep your chin up and keep up the hard work. We all have chapters of our lives, and every good book has several chapters where the hero faces challenges. Hopefully those chapters are behind you. Good luck and thanks for sharing!
I would live in my storage unit.
Ended up losing my stuff due needing to default on my account during hard times. Thankfully I’ve recovered but man was I depressed about it.
I too have lost everything and I only had a storage unit in my name to have us any semblance of anything and then that couldn’t be possible to afford because I just didn’t even have enough money for that per month, everything dwindle down to a friends place for some possessions, but truthfully everything just basically fit into the trunk of a car with what I had left
Anything that actively works against people owning their own land and home makes my blood boil just a little. Dismantling affordable housing is one of the greatest injustices against both the less fortunate and the younger generations at large
Yah, its people working against themselves. PEOPLE CONSUME TOO MUCH. That is why inflation is high. If you cant afford a house, buy a different appreciable asset. Like Stock and Bonds. The run up the stock market from 2008 to Covid... you can trade those massive gains for a house. Now that we are in a lower business cycle, people can do the same. For the next 5 to 8 years. BUT as can be seen by this video... people buy too much useless stuff.
WDYM by "their own land"?
Land should be used at the highest use, not necessarily for residence. Certainly not poor people residence. The problem is that what makes land valuable is people in proximity. The solution is to have land USERS PAY everyone else (making the land valuable) for that value, in a sort of "property tax" auction in which the proceeds go to everyone. We get this backward and anti-capitalist in our system, in which people "own" (exclude others from) land, and just get richer. The owner of the land doesn't make the land valuable, the neighbors do. So the owner is just extracting that value in rents. Literally "rent-seeking" behavior. Purely anti-capitalist. Making us all poorer. Making land get used nowhere near its highest uses.
@@weksauce it is not anti capitalist. Capitalism’s end goal is the pursuit of the divinity of profit. This might be effective in the early stages of a developing country, where improving things would lead to profit. However, companies have figured out to increase profits, they can implement regressive measures to extract more profit instead of innovating, as can be seen by Apple’s business practices. Rent seeking behaviour is undoubtably a result of capitalism coming to fruition since it is the most efficient way to increase profits in the end
@@maganashaker167 Correct. Profit, not rent. You're describing rent-seeking behavior, not profit-seeking behavior. That rents are also marked as "profits" on companies' p&l is irrelevant. Extraction is rent, never profit. You don't extract profits, you extract rents. Rent-seeking is anti-capitalist. Profit-seeking is capitalist. Rent-seeking is not a "result of capitalism". Rent-seeking is only the most "efficient" (I would argue effective) way to increase "profits" (rents aren't profits) because we choose anti-capitalist, anti-competitive laws and regulations to govern our systems. It's up to us what kinds of economies we want. I don't want capitalist markets for everything (healthcare, housing), but for many things, they're the least-bad way to determine what to produce and distribute that production. And most of the problems people identify in specific markets (education, housing, healthcare) are failures to be capitalist enough. People mistake our (America's) current system for capitalism just because it has some capitalist features. It's not capitalism. It has too many oligopolistic, anti-competitive features. In a capitalist economy, everyone makes the same risk-adjusted profit everywhere, all the time, by definition. That's not the case, which means we are nowhere near capitalist. You can't extract rents in capitalist markets/economies, because competition eats you alive.
@@Gebri3l "Land I'd there" is nonsense. Humans can't morally claim land because humans don't make land, and the people who own (claim) land aren't the ones who make it valuable. The productive neighbors are the ones who make the land valuable, not the owner.
I'm a truck driver. Everything I own that isn't in my truck is in an 8x10 storage unit. The wild thing to me is how hard it was to find one in my home town. The storage facilities are plentiful but they all have wait-lists a mile long. I got lucky that a new one was under construction when I was looking to go "homeless" and I got in before they'd even finished moving units on site. Between the spot I rent for my car and the unit I pay almost $300/m. I can't imagine forking out that kind of cash while actually having a living space.
But if you had a living space, you wouldn't need the storage.
@@121intheshade but other people do though, that's my point. It makes sense for me now, it doesn't make sense when you actually have a place to keep things.
@@121intheshade great comment. I was not sure if Jeff S was just making or joke or he was serious. It the case is the latter, it shows that people do not make good decisions in life.
Why not in your home?
@@121intheshade He doesn't need a permanent living space when the guy is living in his truck going over the road, it's actually quite common for long haul trucker to have just a storage unit since paying rent on an apartment for instance is a waste when they're almost never living in it
I once worked at a storage place and that shit was horrible! One of the worse jobs I’ve ever had, the company was always giving you these hypothetical situations in order to sell a unit. Shit was stupid af. What they don’t tell you is that you’ll be a salesperson, janitor, insurance broker, security guard, therapist, and cashier. One of tasks was to call people and tell them that their rent is going up as well as being late in the payments. One guy got so mad at me he actually came down to the store looking for me threatening my life. That was my last day.
Just like Cable Companies raise the price make it look like u need it or threaten their fico score.
Therapist 😂
Multiple hats
I had the complete different experience while working at one. I loved it. I worked at one in Manhattan for 2 years. I was able to do all my college homework while sitting there.
@@Sammydx1 To reach success in life is about luck as much it is skill unfortunately
That "customers literally do the heavy lifting" line was gold
Unlike what is kept in these storages😅😅😅
I worked at a self storage it motivated me to get rid of a lot of junk. When it’s my time I want my daughter to be able to put all my crap in one box that fits in her backseat.
Yeah, just your ashes. Lol
@@mikekent6635 😂 I was going to say, that she can burn.
Swedish death cleaning
@@mikekent6635 that could very well be try.
Nothing wrong with that.
I try to explain this to my
I’m who is a hoarder she won’t dispose of things she’s had for 40+ years in the box never used just a burden in my home and for me when she’s no longer here
My old band used to practice in a storage unit. There was one place in the area that let bands rent them out. We would turn them into practice/hangout spaces. There was a whole community, it was awesome. We used to even have "open practices" where friends and fans would come and hang out for a few hours, party and jam out. Miss those days.
Some storage units have electrical outlets.
This is a respectable use of cash monies. Not too many respectable reasons to rent one of these places for years on end.
I, too, practiced in storage units. When a lot was found that allowed bands, word spread fast.
That is dope!
What city?
I've always been anti-storage. If I can't fit it in my home I don't need it. If I need something its time to get rid of something else.
So what do you do with Christmas decorations? And 7 years of tax records?
Tax records should be digital. Christmas Decorations shouldn't take much space unless you over bought.
Exactly. I’ll never own a storage unit either. Though I think it could be a decent business to own
Agree. I live in 2 bedroom and have only one wardrobe and chest drawer. Still have space left there and in a kitchen. Have too much stuff
Wtf, you really pay a monthly fee for your Christmas stuff and a folder full of papers? Americans 😂
My mom had a storage unit for 12 years. By the time we emptied it out because the price was going up, most of the stuff had rotten.
Lol
How much did she end up paying all together after 12 years?
Ofc
@@codysmith98132 much should just have sold it and bought newxstuff instead
Rotten? Did you keep fruits and vegetables in the storage unit?
My grandpa paid over 100$ a month for over 10 years so over 12,000$ to store a 20$ Christmas tree he got on clearance and he's super responsible with him money and you couldn't squeeze dollar out him
He paid $12020 for a Christmas tree. If this is his only irresponsible spend then maybe he has an anxiety about getting rid of possessions he doesn’t really have space for. This is pretty common. After the Great Depression you had generations that considered it frugal not to throw things out. Your Grandpa shows that these days getting rid of something can be the frugal step.
That's true ! most people storage things for Nostalgic memories only , storage items has no values , people doesn't want to throw away cuz of those things just like family members
Well in his day items were much better quality, not junk from China
@@mukainoda9453 And memories.
@@tomorrow4evaindeed😊
I've had a small storage room for years, holding things for "when I die," hoping my daughter would want the stuff. She has told me she doesn't. Last week, I emptied that storage room and brought the stuff in to sell, and I've discovered that I have a few thousand dollars of antiques and art. So, now, FB Marketplace, etc., here I come!
There you go!
hi it's me your daughter
Greetings Mother and or Father, I'm also your daughter. I have decided I now wish to claim the items. Thank you.
unless you are wealthy, no one wants your stuff when you die, cmon you think your widowed wife is gonna have stuff or pics of you when shes got a steady stream of guys coming over to plow her, sometimes 2 or 3 guys at a time? cmon😂
Please do the Meal Kit Delivery industry next! Very curious about that one :)
I think that has a lot to do with killing off Home Economics classes and a generational experience of eating out many times a week. People literally don't know how to properly cook.
@@500dollarjapanesetoaster8 this is true, especially going through the experience of college, theres an incentive to have pre-made meals
@@500dollarjapanesetoaster8Also both parents are working and probably no longer have time to even if they know how.
@@pennezita4095 I don't live in a dorm, but been there, and while delivery happens, students DO cook. Delivery is just far more expensive than a simple meal. And given how poor students are, many just can't throw money around like this.
Does anyone actually do those?
I was talking to someone a few years ago and his uncle got into self storage back in the late 90s when it was starting to take off and his uncle is a multi-millionare through his (at the time) 3 self storage properties over the last 20 years. His uncle was able to take out a $100,000 loan to build his first self storage property and paid it off in 2 years and expanded from there and is living the dream. There's still plenty of space to expand in the industry and it's going to be very lucrative for at least the next few decades as boomers age and pass on and all there stuff has to be packed somewhere.
Thanks for sharing.
Maybe a few more decades. But if things continue as they are, the boomers’ grandkids are going to be faced with trying to utilize or just throwing away a bunch of old, outdated crap. Meanwhile, they won’t be able to afford enough new stuff to store.
There's several large storage co. opened near me last couple of years. And my daughter's new neighbor out in the country built a gorgeous mansion next to her, apparently the money all from their storage company; they did well. Talking about boomer's stuff; there's constantly new Thrift stores opening, and existing ones expanding; as well as online selling is thriving. We just have TOO much stuff. Manufacturing has just steadily been producing all these years since the industrial revolution and where will it all go...
“plenty of space to expand“ 😂
@rzella8022 it'll go to land fills
I've had 8 new storage facilities built within 15 miles of my house, in the last 5 years. No exaggeration.
Probably not that many actual houses built in the last five years, I'd guess
How do you know *you* are not in a storage facility... 😝
@@niksutliff Nah, probably just plenty of apartment buildings. 😋
@@niksutliff storage units are way more profitable
I have that many plus three new ones being built...also car washes are popping up everywhere now.
As a minimalist/daughter of a hoarder--this is such a great topic to discuss 👍👍
This is the case for many people now. many of our parents are or were hoarders. We are tired of growing up like that and want to go in the opposite direction. I wouldn't consider myself a full minimalist but I still have that mentality of just having what you need and not keeping unnecessary crap in the house.
My mom was a hoarder. When she died suddenly going through her stuff was awful. My sister helped with the initial sorting but all the delayed stuff like photos got dumped on me. Now my previously low clutter home has two extra bins I have to deal with.
Speaking of highly fragmented industries, you should do a video on long haul trucking. A very cyclical, fragmented market with low barriers to entry and nearly 600,000 carriers in the country
That’s fascinating. Please share a good blog/article/video that talks about this 😃
Just like anything else, Trucking is what you make of it.
@@AusWash Lol, wtf? ITS NOT lol
Oh yeah starting out in trucking is like being in a prison cell on wheels. It does not and has not paid as well as people think it does in decades. Then you add in the fact that you can't have a life... At best it's a career choice a younger person could make just save money in a short amount of time provided they were willing to make the appropriate sacrifices. No girlfriend, no housing our utilities costs, no frivolous spending, no kids, no pets, just grind. Start that settled down family life you're essentially paying for other people to exist and not getting to enjoy any of it. The best thing you can do is start trucking early and have a plan on how to get out of it.
@@richardspillers6282 there's literally a trucker a couple of comments above this one writing about his trucking life. it's pretty sad tbh to be confined to your truck and nothing else if that's all you plan on to do for the rest of your life.
I saw this back in 2009 when every vacant lot was a storage facility being built they knew something the rest of us didn't know. This was after the financial crisis
Probably going to have a boom again with the new housing bubble. So many ppl Like me can’t afford to live on their own and had to move in with relative who don’t have room for a lot of my things and I want to believe I’ll find my own place soon and my stuff is my life, it’s hard to throw that away
Housing crisis makes it cheaper to build storage facilities
This video didn't really explore how much it was pretty obvious there was going to be a boom in business with so many foreclosures and layoffs. While average Americans were scared of the real estate market big real estate corporations were snapping up homes to rent or develop.
It didn't take a genius to see that homeownership was going to be a problem for America in the near future.
My first job was selling foreclosed homes. There was so many in my small metro that alone provided many people full time work for years. They were all foreclosed. It was terrible. And it was well into 2009-2010 that ALL our business could come from foreclosures.
And I often saw people left everything they owned. I imagine alot of people who actually did move things out could only afford to do so because of storage units.
Yes it was a conspiracy you are right lol maybe they pay attention to the market and investing
Yup
I am a retired nomad, living in a travel trailer most of the time so I have used storage units up and down the West Coast periodically over the past 8 years. I have noticed more and more houseless people using storage units for the items they can't take with them, whether they live in an RV, car, or on the street. I have seen people staying in their storage units during the day to get out of the elements. The verbiage on storage contracts now states that 'no one can live in the storage unit' and most storage facilities now track their renters' comings and goings. I was penalized once by Public Storage for not entering my code when I left a facility because they wanted to make sure that I had left by closing time. This behavior will become more prevalent as people with unstable housing try to find a place for themselves and their stuff that they can afford.
i heard a story where an unhoused female was harrassed by management of a Public Storage and told her she could not come in more than (I believe she said) 30 minutes per day. I think she might have been staying there several hours per day to just have escape from the chaos of living in a tent on the street or away from all the noise on the street..etc.
sell it if you cannot afford a place to stay the price on the storage unit rent can stop you eating then you die and they sell your stuff anyways they make their money not on the rent but selling the stuff when people not making the payments which can be increase so just having enough money in an account not going to work
@@manp1039 It sounds harsh, but the bottom line is that the buildings are zoned for storage only and not for human habitation. Bad things have happened from people living in units or trying to "hang out" on the property . usually, these are people with very unstable lives and it attracts crime and potential liability issues where someone can end up hurt or dead. The building I run is in downtown Baltimore and our access hours are limited to office hours only for this reason. I lose some customers this way, but the ones who can dot he hours like it cuz they feel the building is more secure and they're safer when they're on the property because I'm there monitoring whats going on (which I am) . Evicting a tenant is complicated and a big bother so the Public Storage you mentioned was probably trying to get her to move out without them having to go through that.
@@catherinesanchez1185 making a blanket statement like that is false. Not interested in any other comments if you are just wanted to spread misinformation.
Dang it man, living in self storage center was going to be my backup plan. This is dystopian. I just want access to the water fountain and a plug..
i worked at a run-down self-storage place that was advertised as the cheapest of the cheap for a summer job. the amount of hoarders and people who leave entirely unimportant, useless things to rot in their units while i had to charge their cards every month was really disheartening. to me, it's a system that makes profit off of forgetfulness; i'm entirely positive that maybe 50% of people had forgotten about the junk they threw in these units and weren't aware of how much money they were wasting keeping their stuff in a unit.
i have a unit myself and it's all sentimental stuff from my childhood. i've been able to cut back on the amount of junk i have fortunately, but i feel like the sheer amount of self-storage units in every city can really enable people to keep things they don't need
It shouldn't have been disheartening, it should have been inspiring! You could do it too! Those schmucks could be paying for your fine homes, your Bentley, your boats
I work for a moving company and wanted to better understand the prevalence of self-storage in the united states; this video is a succinct and accurate explanation as to why we do several of these types of moves per week. My anecdotal experience resonates with the 5 mentioned “Ds” that make these businesses so common in the united states. The emotional connection to physical furniture items/personal affects stored in these united cannot be understated. So many times we move items into these units that would barely be valued at a month’s worth of the cost of renting a unit
You are able to articulate your experience through writing very well. I hope that your able to use this ability in the career of your choice, if not now surely in the near future. What I'm saying is hope your not just settling on hucking cardboard boxes and bed frames for hours in exchange for $ for to long. You is smart🤓
It's human nature, it's in our DNA to look at something and attach arbitrary value. It's why people keep the dirty couch that was their grandpa's.
Since when is any furniture in America under $100? Give me a break
I went to a self storage to get my brother's things out for his move out of state and found two families living in two storage units.
Heartbreaking ❤️
That should be illegal
I've known several people who lived in storage units, and to the guy who says it should be illegal, it is. Some places just turned a blind eye to it, because they helped keep the place up.
@@anthonybha4510 Love the priority and lack of humanity here. Your gut response to finding out a family is forced to live out of a STORAGE UNIT isn't "damn, we should have better conditions in society to prevent this" or "that sucks I can't imagine having to do that". Instead its a heartless "we should further criminalize the lives of people suffering." Absolute evil.
@@anthonybha4510You are a monster
@@kyj6283you put it better than I could have. 👌
Of course they have a need and a function, but I can’t understand people with a home also having a storage unit. If it doesn’t fit in my home, I don’t need it.
I can understand for those who are transitioning or plan to transition between living situations (prepping for a larger house or downsizing), who maybe rent for a short period. I don't understand those who choose to rent for a very extended period though
People r dum
Tax for the stupid
@@iampetz that's how they are used in my country. I've never met anyone that has used these for more than a couple of months at a time.
@@TheSuperBoyProject I’m American, growing up my parents always had a storage unit for their extra crap. I never understood it
Sadly, many people are in crisis when using storage facilities. The loss of a spouse, loss of a job, or some other financial catastrophe that forces them to put their life’s belongings into private storage. And it can take years to recover financially, and recover them. As a result many can’t keep up the payments and lose everything. Only adding to their misery. The American nightmare is more like it.
I have a storage unit that pays for itself $80 per month with all the eBay inventory I have in it. If it weren’t for the storage unit I don’t really have any space in my small apartment to store all that stuff. I also keep seasonal personal items in there. Like all my coats and blankets in the summer. So its worth it to me since I live in a small apartment with no garage. And its conveniently located a couple of blocks away from my apartment.
And is business expense.
Agree. If your storage facility is making you money it's perfectly fine to have.
Yours is a little different situation. That storage unit is basically your "warehouse".
Not only that, but you can also deduct it on your taxes as a business expense.
Yes. I have a home business and rent 2 storage units for supplies and inventory. Storage rental at this stage of my business is a much better option than renting a commercial warehouse.
@@chri8067 If you have two units then it would definitely be warehouse time where I live.
In this town storage units are $2 per square foot, per month. Warehouse units are $1 per square foot, per month. Plus you can potentially fit a lot more in a warehouse per square foot because the ceilings are 2x to 4x higher.
You also have 24/7 access with a warehouse.
A small storage unit (5' x 5') in Los Angeles costs about $154/month. Excluding any extras like insurance, that's $1,848 per year. With the move-in ("administrative") fee, let's call it $2,000. Whenever the thought of putting anything in storage hits me, I look at it and ask myself, "Is this junk worth $2 Grand?" Because let's be real, it's gonna be in there for at least a year. And always, the answer is, "No." So I sell it, donate it, or throw it out. If I need it again, well, I've saved a couple thousand dollars by not storing it and I can just go buy new stuff if I must.
That's over $6/ft^2 for storage! That seems like the same cost per square foot of an apartment!
It is honestly sad. I wish more people thought like this james. I had no idea the price was so high. You can't even live in them anymore.
I used storage while I taught in China to help me move out of my parents house and once the pandemic brought me home I moved my items into my home. I cannot imagine paying the almost $200 rent in addition to my monthly bills for years and years on end. While the reasons given in the video are understandable I knew several people who rented at my storage place who just had stuff they didn't want to get rid of but they never came back to use it just to add more.
I had a bunch of furniture in a storage unit for nearly a year when I moved out of my old place and back in with parents before finding a new place to live. Looking back at it, I probably would have saved money selling/giving away that furniture and rebuying used furniture later on but I wasn't anticipating crashing at my parent's house for more than 6 months. As the months dragged on, I got lazy and didn't feel like driving out there to move stuff around until I finally closed on my new house. The benefit was that I only had to buy a few furniture pieces to complete my new house, and I normally hate shopping for stuff.
I remember an American friend. He got night shift and decide to rent storage instead. There is a security control at night, but not at noon. He works at night anyway, and sleep at noon. Showers in a gym. Much cheaper.
...but kinda sad.
Smart. He can save money for his new home
Smart 😊
Hopefully he doesn't rat on himself.
after i lost everything and had to abruptly move from coast to coast i have left my stuff i storage indefinitely. but tomorrow after 2 years im actually flying back to just get rid of that stuff, the whole situation made me adopt a very minimalist way of life. i have my laptop, phone, bed, and thats all i need now. its crazy how much people are willing to pay to store belongings they dont even use.
I think self storage is similar to credit cards….good, but can be mis-used. I have had jobs with frequent moves, and several times had times the lease on the old place end, but still 3 weeks until the move in date of the new place - very handy to have a month of self storage for most items during these gaps.
And most give you 1st month free ,I’ve had to do the same and basically paid nothing ,and that saved money is then used to py for a uhaul truck
Very true. Once I was relocating and was in temporary housing for a bit. A month and a half of so of self storage let me take my time to find a good place to live.
I'm an empty nester and I've been slowly cleaning out cluttered areas for awhile now. It was overwhelming at first but I just do a little everyday. I donate to goodwill or give to friends for their garage sales. I don't do or have ever done Garage Sales. It's a whole lifetime of stuff, junk, keepsakes, souvenirs and collectibles are the worst. If you have a picture of yourself in the dress then just keep the picture and give the dress away etc.,
The biggest shock I got when downsizing was how little my grandmother's Hummels were worth. Collectibles are only worth keeping if YOU like them.
Garage sale,ebay/amazon and farmers market type places all allow you to sell your old stuff anything cannot sell giveaway for free or put in bin.
@@maryeckel9682 also to have something actually selll for a good amount you need to spend a lot of money over the years to keep it, cause when collectors say “pristine condition” they really mean it, like something made 40 years ago looking like it was bought at the store fairly recently.
I wonder if self-storage is successful largely because of the "if you build it, they will come" component of it. Because it's WILD that many of us have garages and basements and manage to fill them up. I wouldn't blame overconsumption solely -- I think it's human nature to use what's beneficial to us, space being one of them.
It just blows my mind how few of the houses in my neighborhood store cars in their garages.
I know a few people who have entire two-car garages, but they can't fit a single car in them, since they are full of junk. My mom worked with a man who was into old cars, but he has to leave them outside since his garage is full. Such a shame.
Yea but advertising can trick people into believing something is more useful and necessary than it is. Advertising is a big factor
@@Default78334 Many lower class housing developments I drive around have 4-6 vehicles parked in the driveway in front of their garage and sometimes even on the street. Whenever I see them with the garage open it's cluttered. At least half the houses are like this.
Those people are no better off than apartment dwellers who have go from the car to their residence in inclement weather. If you can’t fit your car in your garage, you’re missing out on the main advantage of having a garage. Car is somewhat protected from the elements, vandalism and theft.
I live in the core of Portland. There was a strip mall nearby that was getting redeveloped after the auto body shop moved out. The land was along many bus lines so it would be a great place for more housing because it would be a quick non-car commute downtown or to many businesses on the eastside. Of course, affordable housing would be best, but since we have a housing shortage here, even higher priced housing helps. It also would be a good location for a grocery store or other retail because that would bring more jobs. Guess what ended up being built there? A five-story sun-blocking building by Extra Space Storage, a real estate investment trust headquartered in Utah. It's the exact type of building described in this video, with maybe one or two part-time people who work there. Just infuriating to see in a city that needs more housing and jobs.
I met a guy who worked at a storage unit company. He said a lady would come every month and sit on the one sofa she had in storage. He begged her to sell the sofa and leave someone to contact in case something happened to her. We'll she died, and after a few months, they auctioned the sofa. They buyer found $32, 000 stuffed in the sofa. The lady was stuffing her monthly check in the sofa. Very sad.
I absolutely abhor clutter. To me, the most peaceful life is to gather things and people to me that I love and cherish and add value to my life, and mercilessly get rid of anything and anyone that is not that. If it makes sense for your career or lifestyle, I do acknowledge there is a need for storage facilities like this. But the very concept of me having to rent storage to house "stuff" is stress and rage-inducing.
Some of us live so minimally that I don’t even have space for all necessities where I live
@@X11CHASE i dont think that's "living minimally" i think that's poverty...
What you consider "clutter" is the same thing that makes me happy as a maximalist. More is more, and less is a bore.
@@lovelydolltime8006 okay i dont care
@@lovelydolltime8006 have never heard that term before. It is excellent, I love it! Also the cute saying "....less is a bore". LOL. Gotta use that one. Thanks
Self-storage is why I like minimalism. I've seen family members overwhelmed by rapidly filling storage units and family having to store things interstate. People keeping things for sentimental value and "potential to resell", when sometimes you just have to 'cut your losses' and move on. But there is a demand and overconsumption isn't going away any time soon. Hell, I've been offered to keep cash in a storage facility.. As if I'm paying to do that when banks exist.
Banks.....they "exist" but Many are Failing; be Aware.😂❤
Actually, it makes loads of sense to store cash outside of banks what with this CBDC nonsense coming out.
In a way, having cash reserves is miles better than silver, and marginally better than gold, because during times when the digital payment systems (ATMs, plastic money transactions, ePay services) are down due to natural disasters or outages, *cash is king.*
Pawnshops in my locality do not accept .999 silver, they only take gold and only at or below spot price.
A typhoon decimated the power grid for more than a month, and cash was the only accepted form of payment for most establishments that had their telecom service or Internet compromised.
And now there’s talks of the central banks potentially getting people to switch from their bank accounts to CBDC bull turd where they gain the ability to monitor and control what people buy or can’t buy. They can’t do so with cash.
*FIGHT THE POWER*
I mean a self-storage unit is literally just that... storage
Idk why people hate it if they're paying for it and they want somewhere to save their items, people really like to hate things it seems (and minimalism to be honest is pretty bland)
If you want to sell it then do. Why pay for storage?
@@zuzanazuscinova5209 things aren’t always that simple; if they were, people who run a business that utilizes a lot of material and a lot of space wouldn’t need storages at all.
There the frequently used supplies, the not so frequently used, and the once in a blue moon usage items that aren’t needed often enough, but when needed, they’re on hand and ready to be brought out and used, instead of having to purchase another one when no one sells it locally, or worse yet, having to dig it out of a room full of things in the house, which is also why people use storages - so as to reduce, minimize or eliminate clutter in their homes, especially if said clutter is literally their livelihood and ways to make their living expenses and more.
I rented self storage and never visited it for 5 years. I was just too tired to go there. Then with a help of my brother I finally got rid of it and never looked back. $5000 wasted.
I don't miss a thing that I threw away.
yes, sometimes it's hard to sell or get rid of it, but honestly it's so much easier to just throw it away once and forget about it. Even if it's a useful thing later on, it's really easier to buy it back later, because 98% of things are not like that.
Never again. I am not renting these things.
I use mine as a garage so I’m at mine nearly every weekend working on projects because I’m a renter and have hobbies that I just can’t do at the apartment. If I need power I have a power inverter in my car.
Good Lord, I forgot these were a thing. My mom used to watch storage wars all of the time.
I live in Brooklyn NY and I have 3 storage facilities literally 3 blocks apart. I am glad you are speaking on this. They do nothing for the communities with their big buildings and low employee count. Big waste of space
Started noticing that they started springing up EVERYWHERE. A good deal of them must be stored with junk inherited from relatives that downsized/passed but don't want to discard their possessions.
Over the last 9 years my sister and I lost our mom, her brother, our grand-aunt, and dad. All living in their own place.
Most of the stuff is gone but there's a small amount of stuff we can't part with but have decided it's time. We use it or it's gone.
I have a set of 1920's depression era glassware which has been in cardboard boxes since 1972 since our great-grandmother died. It's been in cardboard boxes longer than half its lifespan.
I had to get a small unit closer to me because my apart is so small, it only has one small closet for storage. I had to get a place to store old tax paperwork. Starting last year I started scanning everything. So soon, all that paperwork will be history, but until then I have no choice.
I had to move back in with family and I couldn’t bring a lot with me when I did or prepare cause it was so sudden, and I didn’t know how long. I imagine with the housing crisis a lot are like me and can’t afford rent to live on their own but want to keep the stuff that makes up their life in hopes that eventually you’ll find a place
As a business, ive literally charged people to dump and donate all their extra goods. While doing dump runs,i see plenty new products at the dump that would cost hundreds of dollars at a store. I've let many expensive things go because i didn't have time or space to store or sell them. The marketing must be really good because people are always buying things they don't want or need and they don't have room for it.
marketing not good cheap crap from china getting people to buy more than they need then it breaks in 6 months or less getting them to buy another one to replace it
@drphosferrous, There will be a service for just about anything. Really!
@@pennycaldwell8141 its almost as if production and consumption have to increase forever, but instead of cyclical revolutions,we just have higher demand for storage and landfills
@@drphosferrous I am not an advocate for the greed this not so brave new world has been evolving into.
Reversing these "trends" starts with healthy individual choices.
@@pennycaldwell8141 how would that work?
I visit my storage unit multiple times per week. Moving my tools and supplies out of my house and garage has been invaluable. It's a decent workshop, supply house and hub for my business. Keeping my home and business stuff seperate was a great decision and worth every penny to have a dedicated area for that stuff. It's also a great place to go when I just need to get out of the house.
The only real reason I see for places like this is if you're going to move and need to store your stuff for a limited time in order not to get a double rent.
Van life would be my reason
@@andhemills works too
As a European: there actually are quite a lot of these places popping up here compared to them not being a thing at all a decade or so ago, although I’m sure it’s nothing compared to the US. They are mostly advertised as “extra space for life” here, basically, a garage to store hobby stuff you don’t have room for at home (one often-played commercial in my country shows a LARPer using the storage unit for his foam swords and costumes.) Personally the only time I’ve considered using one was when my attic needed to be renovated and the alternative was finding room for Christmas decorations and so on in the living room.
It's definitely a cultural difference. There is a large percentage of Americans who have no hobbies, and if they do, they are "functional hobbies." Something they can do that is productive, not just fun. (ei cooking)
Whatever is stored quickly becomes worthless as rents, late fees and rent increases every 3 months add up and people unfortunately don't realize they could have thrown everything away and bought new replacements with the money they wasted storing it. They are emotionally connected to their cheap possessions, and they pay dearly for it. Self storage businesses are money printing machines.
Yes indeed
My family honestly needs a storage unit at this point.
This house has been in the family for over 60 years.
Obviously it's our own fault. It's way to overwhelming. We have our grandparents things, my parents things, then me and my brothers things.
My mom is a slight hoarder. It's not the absolute worst. No rooms are completely sealed off but it's a problem. The attic and garage are just filled with stuff.
I use to be so jealous of other people's houses but I think what really helps is moving. When your moving you probably will get rid of junk and you have a much more compelling reason to bring what you want vs what you don't want.
Discipline helps even more. Don't need, don't buy.
Get rid of stuff you havent touched in a year. Get rid of stuff that doesnt portray or directly represent your family
Keep art, tools, guns, maybe a bauble or two.
Furniture is extra as hell, Im a fan of church swapmeets/ yard sales personally
Start selling things around the house on ebay. Save up to move out in a few years . I was in the situation you're in a few years back
@@Bodangers Sell to who?
And good luck convincing my mom to let go of a bunch of the crap
I have a similar problem, though not quite so severe. Both me and my mom keep telling my dad that he has accumulated way too much stuff that simply isn't worth the space it occupies. Stuff he never touches, and would be fairly cheap to replace if he were to ever need it again. Yet he has this strange phobia of throwing away anything which isn't technically broken. For example:
Some low quality guitars that are physically painful to play.
A large fibreglass mould from a boat project he finished over 20 years ago.
Multiple piles of lumber left from past renovation projects, (actually useful, just too much of it).
A spare car when there's only one person in that house who ever actually drives.
An old outboard motor which he said he would repair 25 years ago, still standing in the same corner untouched.
An old desktop computer which he keeps next to his current desktop computer, on his cramped desk. It has sat like that for 7 years, I haven't seen him use it for 5 years.
In isolation such things may posses some modest utility or sentimental value, but there's just too much of it, and it's too bulky, and free space has a utility of its own.
😪.......I'll always remember my dad not paying our storage when we "downsized" & we literally lost all of our furniture.
In Australia they don't just 'reposses' your items, unless there's no other choice. I can see the US model can be very harsh.
We had family try to convince us to rent a storage unit to house our L shaped couch (that we bought for $150). We just couldn't imagine how that would make any sense seeing as how we didn't move to a bigger space for a good 3 years.
It would have been more to rent a storage unit for that single couch than it would be to just go buy a new one when we were ready. Also we sold that couch for $100 so we were only out $50.
I'm not falling for that rabbit trap of a hole!
You have sense. ❤❤
Yep. All those storage unit reality TV shows made me reslise how much peoole will spend on storing things that are worth very little.
Yes indeed😊
I do work over a large area. Whenever I book a lot of work in one of the neighboring cities I always get a 24hr access, heated, self storage and put a few boxes and a bed in it.
When I'm too tired to drive home, or when I'm in the area and just need to decompress, I go take a nap at the storage. I've never been bothered, but if an employee said something I'd tell them to mind their own business and ask if they're honestly paid enough to care.
@M selfish entitlement, that's quite the stretch.
I'm entitled to do what I want in the space I pay for. I'm entitled to be left alone while I'm there. I didn't say live there, or stay a whole night, so you can walk back your assumptions.
If I want to go into a storage unit, look at photos of people who've been taken from me too soon, cry myself to sleep for two hours then roll out, then that's my fucking prerogative.
ok,those things are not vented
You taking a nap and a person LIVING there all day are not the same a lot of people take a nap in the storage areas but then they leave its at the most a few hours not all day for years and your not female either so homeless woman was a lawsuit waiting to happen if someone opened her storage unit up which would be not lockable on the inside being a cheap one and they would get into trouble if the state found out people were living inside the storage units and living in them and taking naps is not even the same you can take a nap anywhere even on train tracks on the road just need to leave before a train or car comes.
@M Not to mention , he signed a lease agreeing to their terms , so he's breaking the lease and can be evicted immediately. I personally, would never rent at a 24 hour afacility. Theyh tend to have the most issues with drugs, homeless especially at night. No thanks
66% of Americans live in the suburbs. An urban area in the US is any area over 20k people. Hence 98% of suburbs are “urban areas” which is why it’s 83% of Americans live in urban areas. It used to be 70% of Americans lived in the suburbs but we reclassified old suburbs from the 1920s as “the city” even if it’s all still single family housing, but people no longer feel dense old suburbs are suburban anymore. They’re now considered urban
This is because the government doesn't have a demographic classification of "suburban"; all land is either "urban" or "rural" so the suburbs get rolled into the former because they obviously aren't the latter.
I was so against self storage and never thought I would have one until I moved in with my girlfriend and our medium dog in a 420 sq ft 1-bedroom in LA.
It always seemed like a blatant show of consumerism and a waste of money. I would have probably never agreed to the storage if I knew how long we would live here. At the time I thought this was a temporary stepping stone. That being said, I visit our storage at least once a month to get something or add something. We do use the things we have there. At the same time, I’m working on reducing! It’s very expensive space to keep!
That sucks, hope you guys can find a better long term solution. But I wouldn’t be hard on myself in your shows, LA housing market is absolutely predatory so even the minimalist folks find difficult to earn enough to have a place with proper storage without paying for custom made cabinets and other expensive solutions like self storage.
Im literally moving my apartment items into a storage unit right now as I just became homeless
Been through that, actually happened to me June 2022. Stay strong and be kind to yourself. Remain positive and work towards progress daily. Don’t give up and don’t loose hope I promise bad times don’t last forever
@@beautifulmermaid718 thank you for your kind words. Im surprisingly in good spirits, as I see this as an opportunity to lower overhead and use my existing cash flow to bring down debts & increase liquidity, hoping to invest money not spent on rent.
you'll get through it bud, I promise. I literally went through the same thing the past year. I was crashing at friends' houses, sleeping on the couch at my fam's, and airbnb (when necessary). There were many nights when I would feel exhausted and nearly broke down in tears, wanting to give it all up. I just signed a lease for a 2BR in NJ (near NYC) in November and I couldn't be happier. Now it's time to save up for a home
edit: I was technically homeless and crashing around for just over a year (Sept 21 - Nov 22)
You should watch the video of the guy who turned a storage unit into a hush hush apartment...
Yea, thought it was pretty funny to hear this video repeat "American over-consumption" over and over when in reality a lot of these units are used by people who are homeless or renting places that are much too small, or homeless, or they need temp storage while moving, or they got divorced and one of the two people needs to find a new home.
The trend of people living more in urban homes rather than suburban ones was an inevitable consequence of the way cities are zoned, combined with continuing increasing population and NIMBYism. Cities usually have dense urban cores that are getting sliced into smaller and smaller individual units, surrounded by an ocean of low-density suburbs which long ago reached maximum occupancy, and which fence in the dense parts of the cities.
Normally, people would just start building more high density housing out from the core to accommodate additional people who want to own homes with reasonably large floorspace, but that's illegal, so the two options are that more people get pushed further and further out into the exurbs or squished into tighter spaces in the dense limited urban core.
Cities are a result of the j elites constant propaganda for over 8 decades. Cities of more than a million people don't need to exist as they are extremely inconvenient and expensive for people but they do because they generate immense capital from the dense population. They sell the idea of opportunity very well and hide the vast disadvantages that come with it
I heard this advice once about keeping "stuff" or collectibles. Take a picture of all of your keepsakes, and then get rid of them! It's easy to store a tiny USB drive with all the images of the stuff As opposed to keeping it in a storage unit, cluttered attic and garage.
Data storage isn't a one and done thing. It corrupts over time. That same as how physical pictures and documents degrade and rot. If you just chuck your files onto a usb drive (or hard drive, ssd, dvd, ect.), when you open in 5-15 years (depending on storage medium) it's going to be an unreadable mess.
Make sure to rewrite the data to a new drive every few years, and keep duplicates of the most important ones.
or for those very sentimental items, restrict yourself to 1 or 2 boxes. Items cannot exceed those 2 boxes.
I live in a working class neighborhood where garages and sheds get broken into a lot. I keep my 4 wheelers, rototiller, and motorcycles in a storage unit so they don't get stolen, and keep my cheap stuff in the sheds at my house. $70 a month is a small price to pay for that peace of mind.
This is what I'd call a 'deliberate' use of a storage unit, that also gives you a measurable benefit.
You have a purpose (which the storage unit fulfills perfectly) and at only $70 a month, it's a fraction of what most people seem to pay for an average unit. (Seems like ~$150 - $250 a month is what most are paying.)
Some have mentioned that moving often makes you get rid of stuff. Very true. When I was on the Navy I moved so much (seven apartments/barracks in six years) that didn't habe much to move. Really makes you look at every item you have.
wow, i would have never expected storages to be such a business model.
It is a tremendous business. If I could start over, I would jump on the chance to own some of these facilities. I know several people who have and they are all millionaires. The tax benefits are incredible.
@@dreamfire5210 Yes. The renters don’t call at midnight. You never have to fix stuff and if they don’t pay just sell their stuff off to the cockroaches. Welcome to America.
@@dreamfire5210 nice cash flow for sure but unless you cash out early you don’t develop millions till years in
A delicate topic, thank you. 👍
All my past storage renting costs could easily have been a down payment on small home or condo unit by now;
And hard truth, my American dream for home ownership already melt away as well. 😞
I'm sorry to hear that KeithSharka :(
71-year-old white guy here. Will someone please define the "American Dream" for me. My mother and her parents were immigrants from Europe. They made a comfortable life here, but it was no "dream." It took seven-day workweeks, and lots of scrimping and saving. My father grew up on a subsistence farm. They made a comfortable life, but it was no "dream". They worked their fingers to the bone to survive. It was no "dream". I am living comfortably now. This is in spite of layoffs from corporate America, firings from non-career jobs, and having family members to depend on for housing during times of unemployment. I would not say that I am living the American dream, whatever that is. I've gotten to this point through lots of struggling, saving, and persistence. The so-called American Dream is a myth, a beautiful myth. Will someone please define it for me, if it exists?
America is much better life compare to where I am from however, the term "dream" means it is just a dream, not reality
American dream is akin to Sales commission based jobs. You are spinning , talking , convincing people to buy a product, i.e. cars , life insurance policies or single family homes.
Sales folks, who get good at their technique, have more of a chance of increasing their own income.
American dream is that pitch that is used to fill commission-based sales jobs. " All you have to do is sell x number of widgets a week . . ."
Unfortunately, if you can't read people's body language / speak unpleasant version of English / are poor at percentage math sales is not for you.
It's called the American dream because you have to be asleep to believe it
The government and banks made that narrative up to get people into loans
@@deanchur The late, great George Carlin, no?
My dad is always hoarding useful bits and pieces, and it works because they're actually useful and keep getting used! It's ridiculous to me that people both buy and hoard completely useless objects
I only used a storage unit once while I was trying to find a house. I purposely found the smallest and cheapest rent. So paying$50 a month for a few things that would not fit into my living space seemed reasonable.
The best thing is not to get attached to things actually things that can be replaced. I've known people to pay storage fees that far exceed the value of the property they are storing. When a weekend spent having a garage sale pocking what you can get out of the things and give away the rest. Be beholding do nothing that is an inanimate object. Down to the bare necessities of life . Food shelter clothing. And phone wallet keys. Hoarding is a dead end. Things that are piled up in storage eventually begin to rot. As well as become outdated they lose their value as well as purpose.
Got it backwards. Self storage is a symptom of the issue (wage stagnation, industry consolidation, cultural consumerism were the leading factors)
The demand for self-storage also grows with increasingly unstable housing for the working class and lower-middle class. A lot of young people have all their belongings in storage as they move from place to place (especially college students).
you forgot a big one- college students!
its much easier for a college student to move their stuff 15 minutes away in multiple trips to a storage unit when the semester ends, vs multiple trips 3+ hours away to their hometowns, or having to have a bunch of family come help while EVERYONE else also has their family helping on move out day and the place is already hella crowded.
i have a massive pickup truck and offered transportation of stuff to storage units in one trip for $15, to everyone that had a corolla or prius or other small car. i made fucking BANK at the end of the semester i did that. they loaded, followed me, and unloaded. lots of college towns will have 2-3 extra storage places because the college student demand is so high
Yup, I remember having to store my stuff in a storage unit during the summer with a few other college students to save money.
I had a neighbor who was moving from NY to Florida and only taking her clothes and vehicle. She intentionally put everything including furniture in storage to dispise of it. It was cheaper than taking it to the dump herself.
I’m glad I switched to a minimalist lifestyle a few years ago. Sold off so many things.
I used to put some of my stuff in storage. Once I downsized and got out of self-storage I swore I'd never do it again. SUCH A WASTE OF MONEY!
I used to work for a construction company that ran a multi million dollar business out of two self storage units
Modern MBA.... y'all REALLY should do a video on the MOVING INDUSTRY as a "part 2" to your storage unit video
Once(if y'all haven't already do the research/numbers) regarding the MOVING INDUSTRY
you'll see it's quite the OPPOSITE of the storage unit biz in terms of profitability the 5 D's,market share and the psychology of pricing when it comes to customers
Also
PLEASE include in that video on not only how UHAUL is an monopoly when it comes to the MOVING INDUSTRY but also how it understands how cheap MOVING CUSTOMERS are
Thank you
This is a brilliant topic idea!
"This is true. No one wants to pay movers what they're worth until they move an entire house by themselves. Then, they get it! I'll never move my stuff again. Used movers last time and was very happy to pay them!!
The use differs. In Europe people in their personal lives use it mostly for when they move out and don't have a place to move right back in. In US it seems to be mostly extra storage, and that's in addition to having more storage space in their homes too...
I used to be a hoarder and had my fair share of self-storage to filling a two-car garage. Now, after moving 3,000 miles, my storage is my closet and everything I own is in my room. I vowed to never have a self-storage ever again and any downsizing involves donating when I can or throwing away. If it becomes out of site, out of mind, it's getting donated.
You'll store everything and you'll be happy
I worked at a storage facility back in the 80's. Lots of interesting stories to tell, but one of my favorites would have to be the people who got behind on their rent and received notifications about an upcoming auction.
Rather than keeping up on the rent, (for stuff they likely didn't "need" to own in the first place), they'd instead "game the system" and have someone attend the auction and buy their possessions *back* for them.
They actually thought it was a huge win to purchase their own stuff back....and then they'd start the storage cycle all over again.
Wow
I don't allow my tenants to bid on their units at auction , for various reasons. I'm sure some of them have either a family member or pay someone to do this.
I live in an area that has been in a housing crunch for decades, and it's only gotten worse the last few years. Vacancy rates have hovered around 1-2% which is just insane. Housing costs are out of control and nothing new is being built besides expensive single family homes. I couldn't for the life of me understand why I kept seeing storage units popping up in places that seemed like perfect locations for housing, but now that I think about it, it's probably simply for profit. A storage building is easier to build than apartments and probably costs less to upkeep. This is a problem! We need HOUSING! We have got to stop organizing everything in our society based purely on profit and not on people's needs.
So if you have these terrible problems with housing and affordability, I'm 99% sure it's a city run by far-left liberals. You voted for it, you got it.
@@johnadkins1650 Housing affordability and low wages are an issue across the country, so I am not really sure where you get the idea that it only happens in "far-left" controlled areas. I live in a state that has had a GOP governor for like a decade, and fully half our politicians are right wing, yet we have a major issue with housing availability and affordability and have had it for decades. They don't want to raise the minimum wage and they favor single family homes which are expensive and low density. We're running out of places for people to live, the state is losing employees because workers can't move to or stay in the state, and the NIMBYs don't want to allow more housing to be built. I don't see the right doing anything about it. If anything, it's the right leaning people complaining about how building housing will "ruin the state" as if the average working class citizen is some kind of dirty lazy criminal. Maybe what we need is more compassion and respect for our citizens instead of assuming people are terrible based on one thing you know about them?
@@DimaRakesah Forget about the governor, do you live in a city run by the far left - yes or no.
@@johnadkins1650 No, I do not. Where I live is so politically diverse that our elected representatives flip flop with each election. Why do you so badly want that to be true? Maybe that seems like a simple answer, an easy way to be angry at people you already dislike for whatever reason. But I fail to see how blaming "the left" is going to do anything to fix such a complex and deeply rooted issue in our housing system.
@@DimaRakesah You complain about NIMBYs but put yourself in their shoes, you worked hard to finally be able to put down a downpayment for a house and are working hard to pay your mortgage and you are happy with the way your life is going, but suddenly an affordable housing project that will cripple your home's value is proposed, making you lose thousands if not tens of thousands of dollars in property value, wouldn't you react just like them?
That's why I started practicing minimalisim. I decluttered and donated stuff that I was just holding onto knowing that I did not need it. I don't want to struggle trying to move all that stuff out when I need to move...as well as burdening my family when I'm no longer able
My dad did say "a storage unit is the first step to the dump"
About storage in Europe: when it is used it's usually not used by your average person. Some of the most common ones are:
1) someone is moving but the new place isn't ready yet (when someone lives with friends or family for a bit while looking for a new place) - and also if you become homeless. If you do become homeless because you get evicted and get government aid due to unemployment the government in many countries in europe pay for your stuff to be stored in a self service storage unit.
2) Collections. Important or expensive collections can get too large so people rent a storage unit. Those are usually wealthy people.
3) The most common one: businesses rent them to store tools or products. A lot of the rentable storage spaces in europe are freezers. You usually don't get a self service space with those freezers, they just store your pallette along with everybody else's and then take it out for you when you need it.
In Los Angeles, a ton of film industry crew house the gear they sub-rent to productions via self storage.
Decades ago, when I moved in with a girlfriend I put all my stuff in storage. Couple years later when we split up and we were having that last "now I can finally tell you" conversation she told me she always doubted my commitment because of the storage. I guess she was right! Maybe I was, but maybe it was a good idea too..hard to say!
This is why you don’t move into her place and sell your stuff. Had you did that you’d be on the street with literally nothing
@@brianwaller7383 Exactly! But you know...I can't help but think maybe in the back of my mind I had doubts
Nah you knew subconsciously
@@clydedoris5002 I guess so......😭
I used to rent a storage site. Then I realized the crap I stored their and paid money to store was worthless to me for the most part. I cancelled rental and just junked 99% of the crap I had in there. I don't miss it. I am in New Zealand and these storage places are everywhere. It is not just an American thing.
Storage units were so mind-blowingly bizarre a concept for me when I visited the US for the first time. I couldn't understand in what scenario could ppl need this much storage in spite of the average house size in the US is so much bigger than most of the world. It really made me question as to how can people own so much stuff and more importantly why???!! I also understand that the storage is beneficial in many other cases but otherwise it seems so wasteful!
It is completely wasteful, when garage sales and eBay are omnipresent. I sell or donate crap I know I won't need.
Americans love to buy stuff and have no where to put it. It is like a disease.
Its not just people with excess. A lot of homeless people probably use them too. When my mom became homeless, thats where we kept our things
Describing the industry as "fragmented" sounds negative, like it should be brought together. It's a boon for consumers: It being operated by many small businesses and private individuals is the reason why companies in the space cannot demand much higher prices. I wish every industry was "fragmented".
I was thinking the same thing.
In fact, if this industry is so "fragmented", why are the monthly storage fees still so high?
Public Storage is one of the best venture opportunities to invest in. Consider the fact, your biggest expenditure is electricity and property tax. Once the building is built and operational, its basically all profit, it pretty much runs itself. One or two people to run the place, hundreds of renters, a single general maintenance guy, which can be a paid service. thats it. its security is built into its design via keycode passcode entry. one could argue its even a better business than owning rental parking lots, as storage unit buyers are usually looking to store their goods for extended periods of time. stable income, and considering the worst of financial times makes for increased revenue. its a business that does well in good financial times but even better in bad, a factor not present with most businesses.
My alternative as a Minimalist is to just throw away my useless junk or donate what I no longer need. You pay extra and your things will probably be forgotten there/rot inside, and throwing things away is free
Ive got some old college textbooks that I will prolly end up donating to a library cuz I dont care about them nor do I need them
The worst part is realizing how many hard working Americans lost it all and thought of this as a godsend to keep literally anything from when it all fell apart. Most people I know that have self storage, really can't afford it if they want a good lifestyle, but it's every memory they have from a better life until they can get a life again.
The American dream doesn't work when you're awake and working for almost nothing.
I work in the industry and thought this was a great video on how things operate. I found your discussion on real estate taxes and municipalities' acceptance of storage interesting as I've found there is a growing skepticism of the industry and its (monetary) benefit to 'society.' Some municipalities view storage as a less productive property type considering the only/main tax revenue the local communities receive is in the form of property taxes which, compared to other commercial property types, is quite low. Compared to retail, for example, there is also very little collected in the way of sales tax. Additionally, these properties generally employ one or two people at most and likely pool/share employees among properties in an area so there are fewer jobs demanded/generated relative to other commercial property types. One last comment, I believe the REVPAF metric is mostly used when analyzing the REITs or funds in an aggregate sense. At the property level, we generally discuss the blended in-place rate as these units, despite their almost complete uniformity, are rented at varying rates similar to how airlines segment their customers with different pricing levels. While there isn't an "economy" "plus" of units just yet ;) , the rate a new customer pays depends on a wide variety of factors; for example, what day of week, time of year, method of acquisition/rental, traffic levels, etc.
in Los Angeles.. i think some movie productions and musicians use storage facilities to store their gear.. I once saw one unit that was vacated.. and they left reals and reals of movie film.. in the storage boxes.. and i heard about a famous mucisian whom lived in another city in another state that rented a unit in that facility.. it was climate controlled and secure(they provided the electricity for lights and for heat and cooling to keep the temp within a certain range?). I am supposing that person kept things they might need when they came to town for business? and it was cheaper than keeping an apartment or house and paying all the costs involved with that?
shout out shopify for making this possible LOL
The one factor that was not covered. The USA has allowed foreigner non-citizens to purchase USA real estate. There are a lot of countries that do not allow this. Hence the deep pockets of the world have bought up the real estate and the prices keep rising.
Also a question; Who own Public Storage? The Chinese?
Two things. One, there was an article in the Wall Street Journal, I believe in 2022, that said there was increasing pushback in some areas, suburban areas, I believe, against Self Storage facilities. There were actually efforts to ban new construction of facilities. This may be a potential headwind for the industry going forward.
Second, increasing demand created in part by more remote work, which the video did reference to with people needing more space at home for work related equipment, and also higher multi family units coming on line, which also create more demand for self storage ( from these tenants) have resulted in spikes in rental rates in some areas. In my personal case, I relocated in early 2020 for my job two months before Covid struck in an area with several new multi family units coming on line. I rented a unit at Extra Space at $27 all in a month. Between then and the third quarter of 2022, there were three price increases, the last to over $50 a month. That to me was the breaking point. I closed the unit, kept what was essential in my apartment and discarded any non essential goods. I wonder if things like this may finally drive some people away from the "Rent and Forget" habit.
I started at 99 and ended at 260. I wish I had the strength to go thru the stuff earlier to save me some money. I’m sorry to hear some of your stories and I wish you all well.
IDK if you covered it, but one of the key issues Public Storage (PSA) plans for is urban sprawl. Buy some marginal land on the edge of a growing city or town, then 20-30 years down the road, sell it so a dealership can go in or an office building can go up and begin the whole process again.
My goal is not to buy land near a city because it will be city in 20 years and the land will be worthlesss to me
Another reason of self storage, moving back in with parents.
The five D's....
4:27 Death
5:11 Downsizing
5:52 Divorce
6:16 Dislocation - 2% of this is rented out to military!
7:01 Declutter
... I can attest with Downsizing, when my parents moved to a new house that was half the size of their old one, we threw out stuff on a massive scale. TBF, a good # of it was my sister and I's stuff. It was fine when you have more square footage, but later in life, it can clog up your living area. Some have countered that you can end up rebuying stuff that you threw out, which is true. But in our case, we thought long and hard about many of the items we trashed.
I've been a storage unit customer for many years now. I've seen some bad ones, and good ones. Unfortunately I fall into two of the "D's" discussed here. The economic foundation needs to change drastically before anything gets any better for most working people in the US. Unfortunately it's the banking elite that made this country this way economically. I highly encourage everyone to watch the documentary movie "The Corporation". Thank you.
It’s unsurprising to see their inflation adjusted returns are flat. Self-storage is a pure commodity, there’s no winning on differentiation or marketing. Easy to use online platforms might add value but as you noted early on, it’s all about location. With such low barriers to entry and a competitive environment, it seems highly unlikely any operators will earn abnormal profits for even a brief period. Like funeral homes, they look lucrative and fairly impenetrable to disruption but, the market shows the outcomes you’d expect given the overall business models in each case.
Surely a funeral home has stricter entry conditions
I think part of the USA problem is average house size - you expect large houses and fill them with crap then store more crap. In EU we have to learn to be more practical and in Asia the situation is more extreme still.
You are also very home-based in suburbs with little communal space and activities so you accumulate things individually not use community assets
After 3 years of having most of our stuff in a unit because we can't afford to live on our own, we're finally just getting rid of most of our furniture and stuff and buying a storage shed to put in my partners parents backyard. It will be an up front cost but will save us $160 a month. I also don't like having too much and getting rid of things feels really good to me.