There are two things that confuse me; actually there is a lot, but that is for another post.
Debt why does nobody care about the massive debts piling up in North America and around the world? In my opinion this represent one of the most significant risks to the global economy, and no one seems to care since it’s not politically convenient.
Consumerism– Why due North Americans purchase McMansions they cannot afford, fill them with objects they cannot afford, and then rent storage units to store the extra objects they will not use. This is not only a financial issue but an environmental issue as well.
The average American according to
-$4220 in there saving account
-24.3% have no savings
-$117,951 in debt
-$2650 in credit card debt.
With 52% finding it hard to pay the bills and the average amount saved for retirement is $36,250. Why are people still consuming? These are scary numbers.
The average home size in 1970 was 1400 sq ft, in 2009 it was 2700 sq ft. Where does this consumer stuff end up? First in rented storage units then in the landfill. Take a look at neighborhoods, how many people actually park cars in their garage vs storing stuff in them?
U.S. Self Storage Statistics
– 8.96% of households rent a storage unit
– There are 58,000 storage facilities,
– 566 units at each facility, which equates to 32,820,000 units.
– Total square footage available is 2,300,000,000 sq ft.
-$1.42 is the average revenue per square foot.
Self Storage Industry Statistics
-Annual self storage revenue $22,000,000,000
-Total number of self storage facilities in the US 58,000
-Average number of units per facility 566
-Total amount of self storage space available in the US 2,300,000,000 sq ft
-Average revenue per square foot of self storage $1.42
-Occupancy rates for self storage facilities 87.4 %
-Percent of US households that currently rent a self storage unit 8.96 %
-Total number of people employed by self storage companies 172,000
Largest Self Storage Companies
Number of Locations
-Public Storage 2,305
-Extra Space 1,375
Self Storage Auction Statistics
-Average auction price of a self-storage unit $425
-Annual number of self storage units that go to auction 155,000
The average cost of a storage unit is $1,192.80 per year.
So 8.96% of households in the U.S. pays approx $1,192.80/year for the opportunity to store stuff!
There are good reasons to use a storage unit, especially as a temporary solution around life changes (moving, marriage, job opportunities etc.) But I have a suspicion that most is useless stuff that will one day be in the landfill. If anybody wants to reach FIRE that $1,192.80 a year will make a nice extra retirement contribution and you won’t have to drive and check on all your stuff at the storage unit!
Don’t wait for retirement to enjoy life !!