The self-storage industry began in Australia in the 1970s but it was not until the late 80’s that it began to experience substantial growth. Today, there are in excess of 1,000 self-storage facilities ranging in size from small 10 unit sites, through to multi storey 1,000+ unit centres across the country. The industry also now offers a range of specialised storage solutions, including climate controlled storage, document storage and vehicle storage. With this strong history of development, what is the current state of Australia’s self-storage industry?
With over three and half years of data, a study conducted by Urbis BSI in April 2012 uncovered some interesting trends in Australia’s self-storage industry. According to their figures, self-storage has become one of the fastest-growing sectors of Australia’s commercial real estate industry over the last 35 years.
Last year alone Australia’s self-storage industry recorded growth of almost 20 per cent. Unlike in the US, where one in 10 families rent a private storage unit, only one in 25 Australian households currently use self-storage facilities. However, the Australian industry continues to show strong growth, while the US industry is showing signs of maturity.
The trending growth of the self-storage industry can be attributed to a number of social and economic factors. Currently, self-storage is used primarily by domestic clients looking to store personal items and clear space within the home. This trend can be largely attributed to the ageing baby boomer population, who now comprise around 25 per cent of the population.
Baby Boomers grew up in financially conservative times, yet are now living in an era of affluence. Their parents instilled in them the need to save; yet today’s world is one of upgrades and obsolescence. This shift from an age of scarcity to an era of abundance has resulted in an accumulation of possessions. Baby boomers have accumulated so much in their lifetime that they simply don’t have the room to store it all. This has resulted in the rapid rise in demand for self-storage facilities.
The growth of the self-storage industry is due not just to the accumulation of possessions but also to changes in housing costs and living densities. Housing density has accelerated in Australia over recent decades. Floor space is getting smaller while at the same time, housing costs have risen. In 2012, housing prices were almost twice what they were in 1970 in real terms. Many adults choose to delay their home purchase and stay longer in the parental home. This all means more people under the one roof and an increasing need for space saving solutions.
National Storage is one of Australia’s largest self-storage providers, delivering customised storage solutions for domestic and commercial clients for over 10 years. As Australia’s self-storage industry continues to grow, so does the list of National Storage locations across most major cities.
So, whether you’re a business or household in Brisbane, Sydney or Melbourne, National Storage can take care of all your commercial and self-storage needs. For more information about Australia’s self-storage industry or for a National Storage location near you, visit the website or contact a friendly customer service representative.