Why America Can't Stop Renting Metal Boxes for Its Stuff
The American Religion of Self-Storage Facilities
The U.S. holds about 90% of the world's self-storage capacity, with more facilities than Starbucks, McDonald's, Walmart, Home Depot, Domino's, Dunkin', and Costco combined. David Owen argues that church and self-storage are the two great pillars of American culture, driven by the 'four D's'—death, displacement, divorce, and downsizing—plus a fifth: the delusion that your children will want your things. He visits a family-run facility in his town and reflects on what our overflow says about us.
By the time I got home, I had concluded, based on a multitude of examples, that the two great pillars of American culture are church and self-storage.
- epochbtc
This article takes the view of the consumer, "Why do so many people pay to store items they almost never use?". But in actuality, the interesting part of this is why is there so much supply of self-storage businesses?
The answer is: cash flow. Self-storage businesses are the almost perfect solution for someone with a good size (but not enormous) bucket of money that they want to put to work generating cashflow:
1. Cheap build out (cheap land, cheap facilities)
2. Almost entirely hands-off (no employees, automated entry)
3. Low liability (low risk of customers suing you)
4. Low overhead (just pay for taxes, electricity, minimal maintenance)
5. Reliable monthly cash flow
The abundant supply of these businesses, I suspect, tends to generate demand: it's easier to pay $80/month to store your junk than spend the time and emotional labor of picking through what you want to keep and what you want to get rid of. That ends up being captive long-term revenue.
- dcdc123
I live in a small downtown condo. I don't have room to store a whole lot of extra stuff but I also have hobbies like camping, watersports, etc. I keep all of that stuff in a storage unit and I access it fairly often. Since I have it I also use it to save all the boxes for my electronics (77" OLED is impossible to move safely without original box for example), car maintenance stuff, larger tools I use less frequently, etc. It is about 3 minutes drive 10 minute walk from my house. I definitely do not use it to hoard stuff I will never touch again.
- rootbear
I'm in the Maryland suburbs of Washington, DC, and self storage facilities are popping up around here like weeds. I have a storage unit and I'm trying to clear it out. I'm tired of the monthly fees that keep going up. I got it when I had to clear out my late sister's house and I wanted time to go through things and decide what to keep. When I moved last year, I got a larger unit, thinking I would need to declutter my townhouse prior to showing it. It turned out my agent wasn't that concerned about my clutter, but I did move some idle tech stuff into the unit. I was hoping to get a house with a big basement for my future tech hoarding needs, and I wanted to keep this stuff. As it turned out, I ended up in a rancher with no basement, so now I'm getting rid of old tech I'll never have space for. I'd have saved a lot of money if I'd just done that a year ago. I now have a much smaller unit that I hope to be rid of next year. Self storage units are definitely a mixed blessing.
I also have all of the family antique furniture, some of which goes back three or more generations. I have no heirs and no idea what I'll do with it all, but I don't want to leave it for my executor to deal with. At least it's in the house and not in an expensive storage unit.
- michael_michael
Near my house I saw two large blocky buildings being constructed on a main thoroughfare. Different construction companies, but within about 100 yards of each other.
"Fantastic!", I thought. New apartment buildings. That means new restaurants, stores, and other conveniences. Not to mention desperately-needed housing.
I'll never forget my despair upon learning that they were BOTH going to be large multi-level self-storage facilities.
- Jaauthor
Taking this moment to remind everyone that 'Swedish death cleaning' is a healthy, holistic way to not give a storage unit your money.
- milkytron
There was a solid analysis of these facilities done by Modern MBA. https://modern-mba.com/case/self-storage
tl;dw - As far as businesses go, they require low capital to construct, have low operational costs, and also operate as a way to hold real estate/land while also generating revenue.
The people that use them are usually dealing with some life event such as moving, a death in the family, divorce, and just want some solution to house possessions.
- pglevy
We call these "above-ground landfills." After watching (and helping) my parents shuffle stuff around these facilities for years, we drew a hard line in our household: no external storage. If it doesn't fit in the space we live in, we're not keeping it. Great article!
- mike_bob
My personal experience with this is my father, who lives in a rural area with 10+ acres, has placed several shipping containers on the property as storage for his junk. He's charged just over $500/mo for them. He's had them for 18 years. The value of property in those containers is maybe $5000.
Consumerism is a disease, and the USA is super good at it.
- MarkusWandel
Storage space inevitably fills up with stuff. I have the stereotypical "garage too full of stuff to park the car in" but it's one side of a 2-car garage and the other side, and this the wife and I are in perfect agreement on, is reserved for the car.
Then I inherited a second car, which for various reasons is barely practical to keep while it works. It lives outside so that the stuff in the garage (a clutter of far too many bicycles, mostly) can stay accessible. But in winter, it is possible - barely - to park the car inside, with bicycles hanging only inches above it. Some stuff had to be disposed of to make this possible, and I fear some additional stuff will have to go this fall. But you have to set yourself limits or the stuff will grow infinitely.
Meanwhile premium locations all over town are sprouting Dymon Self Storage units. That's the local brand of "premium climate controlled storage". There's one less than a mile, as the crow flies, from my house.
- dlcarrier
He liked travelling in it, but what he really liked was hanging out inside it while drinking cocktails with friends and family, and if he could have done that while parked in an air-conditioned man cave he might never have taken it on the road.
There were a few house boats at a dry storage facility I occasionally drove by, and once there were a bunch of people hanging out on one drinking and partying, miles from the water. I thought it was hilarious, but it did show how much of the cost is the view. Slip fees aren't cheap, and house boat rentals are crazily expensive.