As we step into 2025, migration patterns across the United States are shifting in notable ways. The overall pace of domestic migration has slowed a bit in recent months, influenced by economic conditions, housing affordability, and lifestyle preferences. For the self storage industry, understanding these trends isn't just insightful—it's essential for staying competitive. Let’s explore the key migration patterns and what they mean for self-storage developers, operators, and investors.
Key Migration Trends in 2025
Overall Growth in the United States: As we move from 2024 into 2025, the U.S. population is experiencing notable growth. In fact, 2024 marked the highest population increase since 2001, and early indicators suggest this momentum will continue into 2025. While shifting political landscapes could influence future trends, one key driver of this growth is international immigration. This influx brings fresh opportunities for housing and commercial development, including self-storage. However, despite the national upward trend, not every state experienced population gains in 2024—highlighting the uneven nature of domestic migration and the importance of understanding where demand is shifting.
Slower Domestic Migration: Recent data highlights a slowdown in domestic migration rates, largely driven by economic factors such as rising housing costs, higher interest rates, and overall financial uncertainty. Many individuals and families are opting to stay put rather than relocate, leading to a dip in traditional migration patterns. However, a slowdown in movement doesn’t necessarily signal reduced demand for self-storage. Instead, it presents an opportunity for developers to adjust strategies based on shifting patterns. In regions where fewer people are moving, the need for storage solutions often remains strong due to lifestyle changes, urban densification, and downsizing trends. Meanwhile, areas still experiencing steady inbound migration continue to drive demand for new storage facilities.
The Sunbelt’s Enduring Appeal: Despite the overall slowdown of migration across the US, states in the Sunbelt region—such as Texas, North Carolina, South Carolina and Florida —continue to attract movers. The combination of favorable climates, lower taxes, and job opportunities makes these states popular among retirees, families, and young professionals alike.
The Growth of Exurban Areas: Exurban regions—areas situated beyond traditional suburban zones—are seeing an influx of residents. This trend is largely driven by remote work opportunities, which allow individuals to prioritize spacious living environments over proximity to urban centers, as well as more affordable housing and land. However, exurban areas still maintain a connection to the metropolitan or suburban areas close by.
Economic Constraints and Affordability Rising costs in major metropolitan areas have pushed some movers to reconsider relocating altogether, while others are targeting more affordable secondary and tertiary markets. These smaller cities and towns offer a balance of economic opportunity and lower living expenses.
Implications for the Self Storage Industry
Targeting Growth Markets: With migration concentrated in specific regions, self storage developers should prioritize investments in areas experiencing growth, such as the Sunbelt and thriving exurban communities. Exurban areas offer unique opportunities for self storage development. Their general proximity to greater metropolitan or suburban areas means they still hold a connection to these communities. Positioning your facility in between these exurban areas and their larger adjacent community means you can potentially tap into two markets at once. In addition to this, as “urban sprawl” continues, these communities sometimes become absorbed into the greater city community. Having a facility early on before the sprawl means you could end up with prime real estate in a now expensive market.
Adapting to Remote Work Lifestyles: The rise of remote work has introduced new storage needs, particularly for those looking to live a digital nomad life. Those living a digital nomad life may choose to travel abroad for extended periods of time while they work remotely. Having a storage option with flexible leasing options for their more permanent or large possessions is crucial for these people.
Smaller Units for Downsizing Movers: As more people relocate to smaller, more affordable homes or apartments, demand for storage solutions is increasing. Self storage facilities should offer a variety of unit sizes to cater to these customers, especially those in urban areas.
Short-Term and Seasonal Storage Solutions: Sunbelt states, known for their popularity among seasonal residents, present unique opportunities for self storage operators. Offering short-term leases and specialized options for seasonal storage can help capture this market.
Responding to Economic Uncertainty: The overall decline in migration rates underscores the need for resilience and adaptability. By diversifying offerings and focusing on customer experience, self storage operators can weather fluctuations in demand.
Strategies for Success
- Leverage Data-Driven Insights: Regularly analyze migration patterns and economic trends to guide location and expansion strategies. Monitor new housing being built and try to seize market share in new communities early.
- Emphasize Convenience and Security: Modern customers prioritize features like mobile access, 24/7 surveillance, and climate-controlled units. These amenities can differentiate your facility in a competitive market.
- Sustainability Matters: As environmental consciousness rises, incorporating green practices, such as solar-powered units and energy-efficient designs, can not only attract eco-minded customers, but can also save you money in the long term.
Looking Ahead
Migration trends are more than just statistics—they’re insights into the future of the self storage industry. By aligning business strategies with these patterns, developers and operators can position themselves for sustained growth in 2025 and beyond. Whether expanding into high-demand markets or optimizing existing facilities, staying ahead of these shifts will be key to meeting the needs of tomorrow’s customers.