08 Mar 2022
Over the past decade self storage has established itself as a prominent asset class. It has been called recession proof, a portfolio stabilizer and the Pandemic’s Hot Property from the Wall Street Journal. However, many signs indicate that there is growing demand for RV & Boat storage as an asset class.
COVID-19 changed things culturally in America. A middle class family may no longer want to go to a crowded resort for a vacation, but instead opt to do a weekend camping getaway near a secluded hiking trail. People working remotely no longer need to use paid time off to go on the cross country road trip they’ve always wanted to do, but instead will work from their RV using a wifi-hotspot during the day and travel the roads after hours. Subtle shifts like these have been driving RV & Boat sales.
According to a study from gorving.com, RV sales spiked by 33.8% in 2021. CNBC reported that Boat sales in 2020 hit a 13 year high. With these record breaking sales for boats and RVs comes new demand for boat and RV storage.
Customer behavior on self storage websites makes this increase in demand obvious. StoragePug reported that in 2021, consumers visiting Self Storage facilities websites managed by StoragePug were seeking out boat and RV parking at a 250% higher rate than they did in 2020.
The Radius team took a look at how the rates for units categorized as RV, Boat or Parking have changed from 2020 to 2021. The average for units categorized as that, was $122.30 in 2020, which grew to $135.60 in 2021, over a 10.8% increase year over year.
Jim Chiswell, a 40 year veteran in the Self Storage industry released an article in February 2022 pointing out signs that RV & Boat storage demand would increase over the next year. You can find the article here.
“This is ushering in, in my opinion, a coming boom in RV & boat storage needs from coast-to-coast. I expect to see a jump in stand-alone facility growth, together with an increased emphasis to include significant portions of land at new self storage complexes for RV & boat parking. It is not just simple outside parking, but covered as well as fully enclosed spaces that will boom in this decade.” Jim summarized.
As demand for RV & Boats increase, so too will the demand for safe and affordable storage for them. RV & Boat storage should be on everyone's radar, as an asset class that could yield great returns.
References:
Radius+ data
