There’s a Growing Backlash to Self-Storage

America’s attachment to its possessions has helped create a massive $60 billion self-storage industry. Yet the rapid growth of storage facilities is now facing increasing resistance from local governments. More than 12 percent of households in the United States currently rent storage space, the highest level ever recorded. At the same time, communities across the country—from Maine to California—are working to restrict where these facilities can be built, arguing that the land could serve more valuable purposes such as housing, employment centers, or lively commercial areas.

Since 2019, regions in at least 15 states have adopted bans or strict limits on new self-storage developments. In Providence, Rhode Island, city officials went a step further by placing self-storage facilities on the same prohibited-use list as prisons and slaughterhouses. One city council member defended the decision by saying many people are storing belongings they likely do not truly need.

Despite the pushback, the industry remains enormous. According to Sparefoot, the United States already has more than 2 billion square feet of self-storage space. Growth is continuing as well, with another 164 million square feet currently planned or under development.

In response to criticism, storage companies are attempting to reshape their public image. Some developers are promoting updated architectural designs and combining storage facilities with other businesses such as laundromats or restaurants. New companies, including startups like Stuf, are also experimenting with small automated storage centers placed inside existing buildings.

Still, convenience remains the main factor in choosing locations, which often places storage buildings close to residential neighborhoods. Many of these automated operations also generate few jobs, another point of criticism from local officials.

Meanwhile, demand for storage has cooled somewhat since the pandemic. Much of the industry’s growth has historically been fueled by life changes such as downsizing, decluttering, divorce, or death. By the end of last year, the national average occupancy rate for storage units had fallen to about 77 percent, according to Sparefoot.

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