Are You Spending Money to Keep Stuff You Don’t Need?
It’s estimated that more than one in 10 Americans leases a storage unit. In June 2023, prices charged by self-storage facilities averaged $165 per month nationwide, after rising 20% over the previous year.1 Storage renters may pay more than that for large spaces or climate-controlled units, and at facilities in high-cost cities. For example, according to the website RentCafe.com, on average, you’ll have to pay $254 per month for a 10’x10’ non-climate-controlled unit in Oakland.
Is Self Storage Worth the Cost?
Statistics from the Self Storage Association show that more than half of those renting will keep their unit for a year or more, so the costs can add up significantly – that unit in Oakland could cost over $3,000 per year! And, of course, you’ll have nothing tangible to show for your expenses when you end your rental agreement.
In fact, a surprisingly large number of storage units are eventually abandoned. According to the company Simply Self Storage, 155,000 storage units are auctioned off every year.
Derek Naylor, the former president of Storage Marketing Solutions, explained to the New York Times one of the reasons why storage facilities are so profitable. “Human laziness has always been a big friend of self-storage operators. Because once they’re in, nobody likes to spend all day moving their stuff out of storage. As much as they can afford it, and feel psychologically that they can afford it, they’ll leave their stuff in there forever.”
If you keep excess belongings stored away from home and well out of sight, this recurring monthly expense may not stay top of mind.
However, finding the motivation to empty a storage space could create breathing room in your household budget and/or yield savings over time that helps you make progress toward important financial goals.
Reasons for Renting Storage Space
| Not Enough Space at Home | 40% |
| Moving | 34% |
| Downsizing | 8% |
| Changes in Household Size | 7% |
| Business Purposes | 5% |
| Home Renovation | 3% |
| Other | 2% |
Source: StorageCafe.com, April 25, 2023 (does not equal 100% due to rounding)
Clearing Space at Home
It may not be your favorite way to spend a weekend but decluttering your closets, garage and living spaces would be a good place to start. Prioritize and make room for the possessions and keepsakes you love most but resolve to let go of things that may not be worth keeping, especially if you must pay for storage indefinitely.
Try to sell furnishings, housewares, toys or clothing that you don’t use regularly for some extra cash by posting ads with photos on resale apps, websites or social media, or possibly by having a yard sale. If you can’t sell certain items, you can feel good about giving them away to friends, neighbors or a local charity.
1) The Wall Street Journal, August 26, 2023
Article is based on content from Broadridge Investor Communication Solutions and Pensionmark Financial Group
