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Population growth in a region has long been looked at as a driver for Self Storage demand. With a growing population there is a higher demand for consumer goods, services and housing. A growing population means a growing group of people looking to store their belongings.
The Radius+ team took a look at fortunebuilders.com top 3 cities for population growth in 2022 and dove into how it affected the average rate of a 10x10 CC unit.
Frisco, TX was first on the list. Frisco is located in the Dallas-Fort Worth-Arlington, TX CBSA, a well known market for having the highest square footage of storage in the country. However, over the last 10 years, Frisco’s population has increased by 70%. This seems to have positively affected rates in the area.
When looking at a 10 mile radius from the center of downtown Frisco the Radius+ averaged the rates from 114 facilities to see how the average price of a 10x10 CC unit had changed from July 2020 till July 2022. In July 2020, the average 10x10 CC unit was going for $100. While in 2022 it had increased by 67% to $167.
The second city with the most growth as of 2022 was Buckeye, AZ located in the Phoenix-Mesa-Scottsdale, AZ CBSA has seen lots of population growth due to it being so close to Phoenix.
Looking at a 10 mile radius from the center of the city, including 13 facilities with pricing showed that rates for a 10x10 CC unit increased 14% from $169 to $193.
The third and last city on the list was New Braunfels, TX. This city is located in the San Antonio-New Braunfels, TX CBSA and has seen a lot of growth in the past year due to it being between Austin and San Antonio.
A 10 mile radius from the center of the city, including 49 facilities with pricing showed that the price of a 10x10 CC unit increased by 32.2% taking it from $124 in July 2020 to $164 in July 2022.
Taking a look at these three cities shows a strong correlation between population and an increase in rates.