315. Self Storage Could Be the Biggest Winner of Lower Interest Rates
This is the biggest thing to happen to the self storage industry in years.
Last week, the Fed made their much-anticipated decision to cut rates. In the weeks leading up to the decision, interest rates fell sharply, reigniting the homebuying process for hundreds of thousands of Americans sitting on the sidelines. Rate cuts and mortgage rate declines will have momentous effects on the self storage market, and, I believe, will usher in a new cycle for self storage investing and wealth creation.
We, up until recently, have been going through a self storage recession. What most self storage investors don’t know is that some 40% of our customers come from moving alone. Raise interest rates, stop home purchases, and you cut off the lifeblood of the storage business. But now, that’s changing—and it’s changing in a major way.
In this episode, I’m going to explain why the Fed made their decision now (and whether they were too late), what lower interest rates mean for the self storage industry as a whole and your facility’s occupancy, and what I’m doing to prepare for this next cycle.
This is going to be HUGE.
What you’ll learn in today’s show:
- Interest rate update and the Fed’s recent decision to (finally) cut rates
- What happens to self storage when rates fall (even by a small margin)
- How lower interest rates could bring back rent increases for storage facilities
- My investing plan if rates continue to trend downward
- Why the Fed changed their tone and what their new verbiage means
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