What You Need to Know About Self Storage Prices
So, you’re ready to rent a self storage unit. There are so many great reasons to do so. A storage unit can help you move, act as an off-season closet for clothing and sports equipment, provide extra space for your business, and a lot more. You’re probably wondering how much it’s going to cost and why prices can vary so much. Well, that has to do with a plethora of factors, which we’ll cover here.
InflationBecause of inflation, everything rises in price at some point. The same is true for self storage rental prices. Expect rental prices to increase at about the same rate. If inflation one year is 1.2%, then on average, storage rental prices will go up by that much.
Supply and DemandWe’ve all learned in elementary school about supply and demand, and this economic rule holds true most of the time. At the beginning of COVID, when people were hoarding hand sanitizer, toilet paper, and paper towels, you could find them on resale sites like eBay for absurdly high prices. Speaking of COVID, as the pandemic took over the world in 2020, the demand for self storage grew. People had to move into smaller homes and therefore needed somewhere to keep a lot of their stuff until they could afford larger homes again. Because of increased demand, some properties raised their prices. We’ll see supply and demand reflected in other price factors, too.
New Property ConstructionThe self storage industry keeps growing, and to meet demand, growing companies build new properties. When that happens, supply and demand come into closer alignment, and prices lower so that properties can remain competitive. As more people fill those facilities with their belongings, demand increases, supply lowers, and prices rise.
Space SizesIn a grocery store, prices for smaller packages are less than prices for larger packages. However, the larger the package, the less you pay per space. The same idea applies to self storage units. Small spaces rent for less than large units, but the larger the space, the less you’ll pay per square foot. Let’s take a case study. We looked up a random storage facility in Indianapolis, Indiana, and will use their listed prices. All the units quoted here are standard, drive-up units. The prices are as follows.
- Small, 5’x10’ space - $68 per month
- Medium, 10’x10’ space - $90 per month
- Medium, 10’x15’ space - $127 per month
- Large, 10’x20’ space - $145 per month
- X-Large, 10’x30’ space - $198 per month
- X-Large, 10’x40’ space - $227 per month
- Small, 5’x10’ space - $1.36 per square foot per month
- Medium, 10’x10’ space - $0.90 per square foot per month
- Medium, 10’x15’ space - $0.85 per square foot per month
- Large, 10’x20’ space - $0.72 per square foot per month
- X-Large, 10’x30’ space - $0.66 per square foot per month
- X-Large, 10’x40’ space - $0.56 per square foot per month