Canada is seeing a rise in the number of self-storage units being rented and bought. As the pandemic continues to rise globally, many people see self storage as a necessity. Canadians have a three-fold reason for the increase. First, the rise of pandemic cases and those who are quarantined. This has caused an issue of supply and demand in the storage unit industry. Secondly, the seasonal changes in Canada have helped to increase the number of units sold and rented. Third, investors have seen the growth in businesses, residential housing, and the demand for the supply unit and have, consequently, increased the number of available units for purchasing and renting.
The Canada storage unit market is thriving. Here are a few considerations why you should take note of the growth.
Canada’s self-storage thriving due to the pandemic
While the country saw the biggest spike in cases in April and has seen a constant decline in the months to follow, recently the numbers have begun to rise again. How does this contribute to the thriving self-storage market? As the number of cases increases, the number of people who are forced to stay indoors increases. Typically, a person who stays indoors does not want to be around a lot of clutter. As such, those who have to find that they either need to clean out and discard items or put items into storage.
The second factor with the increased cases to the number of storage units rented, is space allocation. Due to the age of those typically effected by COVID, many homeowners and sons/daughters are finding it necessary to make spare rooms for other family members within the house. As most individuals do not keep a spare room handy for such an event, this means cleaning out that storage room, home gym, hobby room, etc. And as the accommodations are, hopefully, for a short duration, having a storage-unit for the temporary need has been used.
Due to having to move in individuals, a lifetime of goods needs to be put somewhere. Combining houses is an issue. Using storage units is the cheapest and quickest means of securing property when such a need arises.
Seasonal Changes cause a surge in Storage purchases and rentals
Other than the pandemic, there have been other factors which have contributed to the surge in storage space rentals. Seasonal changes have always increased the number of units acquired in Canada. During the summer people wish to have their houses look and feel warm and inviting. As the climate goes colder for the fall and the winter months, people tend to transition from the warm and inviting to the more holiday driven aesthetics of home décor.
Another reason why Canada has seasonal increases in storage unit numbers is equipment associated with the seasons. Winter months tend to require snow shovels, snow tires, and perhaps even larger equipment to help maintain and clear ice and snow. During these times, other larger summer items such as golf carts, sports cars, boats, and ATVs need to be stored to prevent damage. Storage units provide a means of storing the seasonal equipment and keeping it safe until the seasonal temperament is ideal for its use.
Canada storage spaces as an investment
While there is tremendous personal reasons why Canada has thrived with storage units, there is also a professional motivation for the increase. Businesses and entrepreneurs have seen that there is a huge potential for capital gain in storage units. First, the person who rents or buys the units has the ability to maximize the space by renting the unit to another tenant (if allowed in the terms of the sale). Various surveys have shown that people who purchase or lease a storage unit often do so for the long term. This translates into long term financial gain for the leaser. Secondly, the purchaser or leaser understands that units are a fail safe way in which to make money. The unit is stocked with goods and therefore, in the event that a person does not pay on the storage unit, he or she can still make the money needed for the unit by auctioning off the goods inside the storage unit. This is not typical, as the cost to rent and/or buy a unit remains low and people are, generally, apt to pay a low cost per month to keep their goods (again going to the long term investment positives of storage units).
Will it continue to thrive?
As more businesses and residences grow, so will the need to have storage units. It is predicted that these areas will continue to see growth throughout 2021. Therefore, the number of storage units rented and purchased are prone to increase as well. Whether you are looking to store your goods during the COVID pandemic, seeking storage solutions during the various seasonal changes in Canada, or looking to gain some capital from investing in a storage unit to sub-lease, the market is thriving to do so.