Self-storage is poised for continued growth across the Lone Star State. Here’s what investors should know about trends, demand drivers, and opportunities in Texas self-storage.
A Standout Nationwide
Texas boasts the second largest self-storage market in the U.S. after Florida, with over 50,000 facilities generating billions in revenue.
Urbanization Accelerating Demand
Major metro areas like Austin, Houston, and Dallas are magnets for new residents, expanding the tenant pool. More urban dwellers need storage.
Employment Surge Fueling Space Needs
Job growth in Texas has outpaced other states, bringing more workers who require storage for professional items.
Disposable Income Rising
With wages increasing, Texans have more discretionary income to spend on self-storage for extra belongings.
Smaller Homes Spur Rentals
Home sizes are shrinking in high-cost urban areas. Downsizers turn to self-storage to hold belongings that no longer fit.
Business Storage Expanding
Companies large and small leverage storage for equipment, documents, inventory, and more. The remote work boom is also driving demand.
New Supply Lagging
Developers face costly construction challenges keeping new storage deliveries low. With some geographic exceptions, constrained supply amid robust demand benefits existing assets.
While already an industry leader, Texas offers ample runways for self-storage to continue thriving. Savvy investors will look to stake claims in this rapidly growing market through the development, acquisitions, and strategic management of storage assets. Take advantage of demographic trends and tightening supply with a long-term view on returns.
