Houston Skyline As Population Booms
Introduction...Some may be surprised that people continue to flock to Houston after the oil price drop and now fluctuating around $50 per barrel. After all, Houston is the energy capital of the world.
If you subscriber to our Oil And Gas Insider newsletter, you would have read that “Shale Expansion Dominates Competition,” where the drillers in North America plan a combined capital expenditure of $84 billion this year. Click here If you want to know why the 32% increase in expenditures over the previous year.
Ok, back to Houston and self-storage... According to U-Haul, for the seventh year in a row, Houston ranked as the most popular drop-off location for one-way truck rentals.
Houston has had steady growth in recent years. The U.S. Census Bureau reported that Houston’s population count went from just over 2 million in 2010 to 2.2 million in 2015. The increase in fracking has largely been responsible for bringing 500,000 jobs to the region.
The population growth has impacted self-storage industry where current occupancy in most facilities are more than 90% full.
The housing and construction growth has also brought construction contractors, landscapers, pressure washers, and people like that. They’re looking for a place to keep their materials and equipment. So, self-storage is the obvious choice.
In summary...Where there is job growth and population growth, the demand of new and existing self-storage also grows. Those are the areas we are buying or building self-storage.
Drop us a note if you are intrigued by self-storage investing and would like to know more.