{"id":5562,"date":"2020-05-07T12:00:11","date_gmt":"2020-05-07T19:00:11","guid":{"rendered":"https:\/\/blog.neighbor.com\/storage-blog\/?p=5562"},"modified":"2024-10-30T12:07:38","modified_gmt":"2024-10-30T19:07:38","slug":"are-storage-units-a-good-investment-during-a-recession","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/are-storage-units-a-good-investment-during-a-recession\/","title":{"rendered":"Are Storage Units a Good Investment During a Recession?"},"content":{"rendered":"\n

If you’re an investor searching for a port in a storm, you might have heard about a once-obscure sector of the real estate investment portfolio — self storage. It doesn’t sound sexy. It isn’t sexy. But it’s solid.<\/p>\n

Historically, self storage investments have outperformed other real estate sectors (such as retail<\/a>), and even the stock market, through good times and bad. Yes, storage units have proved themselves to be a good investment during a recession, during a recovery, and during the good times.<\/p>\n

Self storage investments weathered the Great Recession<\/h2>\n

You don’t have to look far back to see how the self storage sector of real estate investments fared through the Great Recession starting back around 2007-08.<\/p>\n

NAREIT<\/a>, the National Association of Real Estate Investment Trusts, has been tracking real estate investments since 1994. They showed some eye-opening numbers for the strength of investments in storage units during the economic downturn. Actually, they show some surprising numbers for the storage sector overall.<\/p>\n

But first, let’s look at how they fared in the Great Recession. The recession is commonly referred to as starting in 2008. But a look back at the numbers for real estate investments shows the damage actually began in 2007.<\/p>\n

Across the board, real estate investments tumbled into red numbers in 2007. The one exception is healthcare, which fell precipitously but remained in the black. The dive went deeper in 2008, when even healthcare slid into the red.<\/p>\n

The surprise element, though, was self storage. After dropping about 24 percent in 2007, it rebounded with a 5 percent gain in 2008 and a continued rise in 2009. Self storage was the only real estate sector to post in the black in 2008, when losses climbed above 60 percent for some sectors. By 2009, the economy in the infancy of what proved to be a slow recovery. But already, all real estate sectors were back in the black.<\/p>\n

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Can we pay you to store vehicles?<\/h2>\r\n <\/header>\r\n
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List your unused space<\/h3>\r\n

People are earning $1,000s per year from their garages and outdoor space.<\/p>\r\n <\/div>\r\n

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Approve your renters<\/h3>\r\n

You're in control. Approve who rents and the hours of access.<\/p>\r\n <\/div>\r\n

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Get paid monthly<\/h3>\r\n

Sit back and collect automatic payments each month.<\/p>\r\n <\/div>\r\n <\/section>\r\n