I have never rented a self-storage unit. I have stored things at my parents' places during certain periods of my life, such as when I moved to the US for grad school, but as a general rule, I never seem to conclude that I have too much stuff and that I should maybe rent some storage. However, I do on occasion fantasize about having a garage or large "man cave" where I could store an assortment of exotic snowboards, bicycles, and other life essentials. I mean, who doesn't, right?

In any event, I seem to be in the minority, because self-storage is a growing real estate asset class:

Investors have dramatically increased their allocation to self-storage over the last several years [in the US]. A rush into the asset class occurred from 2020 to 2022, when transaction volume hit $50 billion, far exceeding the $35 billion spent during the entire seven‑year period from 2013 to 2020, according to Cushman & Wakefield. Transaction volumes are now normalized but remain well above their pre‑pandemic baseline.

Moreover:

It proved to be the best-performing sector in the NCREIF Property Index from 2005 to 2022, with returns since 2010 nearly double that of the overall index.

So what's driving this? Some of the explanations include a frozen housing market, millennials who haven't yet bought a garage and are starved for room, and small-scale entrepreneurs who use it as cheap warehouse space. According to some reports, this latter use case accounts for nearly a third of total demand. And this makes sense to me. But generally, I have tended to apply an egocentric bias to this asset class. My mind discounts it because I don't personally use it.

One way to look at self-storage is that it represents the "unbundling of residential real estate." Housing has gotten so expensive that we continue to search for ways to make it smaller and more efficient. One second-order consequence of this is that storage now needs to be disaggregated and moved to an off-site location where land is cheaper and the build costs are lower. From this perspective, there are strong structural reasons for the sector's growth.

There are also noteworthy differences between Canada and the US. Americans use self-storage at roughly 2 to 3x the rate of Canadians when measured by square footage per capita. Is this because Americans are bigger consumers and have more stuff? Or is it because the industry is more mature and built out at this point? It's likely both of these factors.

According to Avison Young, the supply of new self-storage in Canada is projected to nearly double year-over-year from under 1 million square feet in 2025 to over 1.8 million square feet in 2026. Another specific demographic factor contributing to this growth is Canada's aging population. People are downsizing and then needing to put their stuff somewhere. How long this stuff stays in storage, I don't know, but it's there.

I think the personal tension I have with self-storage is that there's a big part of me that aspires to have less stuff. When I travel, I take great pride in often packing only a carry-on. There's something liberating about having everything I need in one roller. Less is more. But then again, I could really use a new commuter bicycle and I have been meaning to get into splitboarding. How much do those storage units cost again?

Cover photo by Aga Adamek on Unsplash

We moved into our new apartment today, so I don't have a lot to say other than that moving is a good way to remind yourself that you have too much stuff. I was in my last place accumulating for over a decade.

I try my best to live minimally and there is certainly something liberating about this mindset. But there is also a part of me that is a collector at heart. (A great number of our boxes are filled with things like books.)

It also turns out that Boxing Day, or some other time over the holidays, can be an excellent time to move. Streets are calm. Buildings are quiet. The email firehose is off. And nobody else wants to move at this time.

Most importantly, though, it affords you some time to get your life back together. And that's exactly what I'll be doing for the rest of this week.

Yeah, I can't say I'm excited to try this. Japan Airlines has just launched a new year-long pilot allowing its passengers to reserve and rent clothes. The way it works is that you tell them what you're traveling for and then you get something like a "spring/fall x smart casual" variety pack delivered to your hotel or Airbnb.

The clothes, which look something like this, are a mix of excess stock and second-hand stuff, and so it is being positioned as a more sustainable choice. You're both using clothes that might otherwise go to waste and you're reducing the amount of weight that you're traveling with. (You still need to bring your own underwear.)

And this could add up:

The site handling the clothing rental system claims that a 10kg reduction in a flight passenger’s luggage results in an estimated 7.5kg reduction in carbon dioxide emissions. A 7.5kg reduction in CO₂ emissions, it adds for reference, is the equivalent of forgoing using a hairdryer for 78 days (based on an average use of 10 mins per drying session).

I suppose this could also be positioned as a convenience: why lug a suitcase full of clothes around when you can just reserve what you want and have it waiting for you at your hotel? But I also suppose that you need to be okay wearing well-used clothes. Maybe this matters less, though, if the clothes are really nice and fashionable?

I don't know. It'll be interesting to see if there's a market for this.

I would also say that even though I may not be excited about rental clothes, I take great pride in packing efficiently for travel. Unless I'm going snowboarding, I basically do not check a bag. I can do 2 weeks just fine with a carry-on and, to be honest, there's something liberating about reducing your belongings to only what is necessary.

So who knows, maybe bringing only underwear and toiletries would be even more liberating.