People and corporations across the Unites e United States move every year, creating lucrative business opportunities for those interested in offering moving and storage solutions. The overall moving services industry overview shows quite a healthy picture of the sector, with revenue estimated at $21.3 billion from 2023 to 2028. What is more, the sector employs around 108,000 people, creating job opportunities both directly and indirectly.
One of the best business opportunities in this sector is investing in a moving franchise or a storage franchise. There are many good reasons for this, which we cover in more detail below. But first, let’s explore some interesting storage and moving trends for the current year and beyond in more detail below.
Storage and Moving Industry Trends in 2024
Whether you are considering storage franchise opportunities or moving franchise opportunities, the industry is rife with opportunities for aspiring business owners. Here are a few facts and trends worth considering as you embark on this journey:
- People in the US move an average of approximately 11.7 times over their lifetimes.
- Sources indicate that the storage and moving industry’s market size in the US is currently valued at $44.33 billion for 2024.
- However, the market size is expected to rise to $50.01 billion by 2029, indicating healthy growth with a compound annual growth rate of 2.44% between 2024 and 2029.
- It is argued that the industry’s growth is strong, exceeding the national economic growth average.
- Some factors that are driving this growth include property purchases and home sales.
- Depending on the distance covered, whether packing is required, the number of goods, and the number of people moving, the average cost of a move is $1,400, ranging from $800 to $5,700. However, the latter figure can easily exceed $10,000, if the move is inter-state.
- Moving costs have increased by approximately 9% between 2020 and 2021, driven by inflation, labor, and rising gas prices.
- When it comes to junk removal, the industry’s value hovers around the $10 billion mark, expected to reach over $80.7 billion this year..
- On average, homeowners spend around $70 to $750 on junk removal from their homes. This can be part of general clean up efforts or as part of a broader inter- or intra-state move.
- The US Census Bureau estimated that the average moving rate for Americans was 12.6% in 2022, declining slightly from the 12.8% figures in 2021.
- The number of Americans moving homes in 2022 was 28.2 million in 2022, decreasing from 32.4 million in 2018 and 27 million in 2021.
- Interstate moves for Americans account for around 19.9% of all moves in 2022.
- Intra-state moves, on the other hand, accounted for around 80% of all moves during the same period.
- A total of 3.3% of Americans moved to a different country as opposed to making an inter or intra-state move.
- 2022 was a year of great moves, with USPS processing over 33 million permanent address changes. This is quite a drastic decrease from 2015 figures, when the total number of address changes recorded was 37 million.
- The top two metropolitan areas that people are moving to within the US are Dallas and Houston, gaining 433,619 and 341,530 residents, respectively.
- The areas that people are moving away from most quickly are New York City And Los Angeles, with each losing around 492,298 and 379,447 residents, respectively.
- The top two states that people are moving to are Florida and Texas.
- The Midwest is also seeing declines in residents due to moves, with the highest recorded numbers being for Illinois, losing 115,719 residents.
- Summer is considered the most popular time to move, with most moves taking place between May and August. Meanwhile, Fridays and Saturdays are the most popular days that people move.
- When it comes to storage, it is estimated that 9% of US households currently rent a self-storage unit.
- The self-storage industry contributes around $38 billion in revenue each year.
- There are 2.3 billion square feet in total of self-storage units in the US.
- The most expensive place in the US to rent a small storage unit is San Francisco.
- Whether you choose to run a large or a small business, focusing on providing exceptional customer service should be one of your biggest priorities.
Why you should consider a storage and moving franchise opportunity
There are so many good reasons to consider moving and storage franchises for sale. Let’s take a closer look at some of these below:
- Demand for the moving and storage industry is expected to continue on a growth trajectory.
- Storage businesses typically have low overhead and maintenance costs and provide a steady stream of income.
- Running a storage of moving franchise gives you flexibility to manage your business at your own pace and according to your schedule.
- The storage and moving franchises offer business models that allow for faster scalability.
- The diversification of your business is another excellent potential area of growth worth considering as there are many different storage options, such as climate-controlled units, drive-up units, units to store RVs, boats, vehicles, etc. There are also franchises that offer portable storage.
- In addition to these benefits of fixed or mobile storage, running this type of franchise opportunity can also offer you significant tax benefits, including deductions for depreciation, insurance, and repairs.
- Storage facilities and third-party storage management often have high occupancy rates at around 90%.
- Self-storage franchises and franchises offering units moving and portable storage can also benefit from high resale values, with a sound exit strategy for the franchise owner in the future.
How much does it cost to open a storage franchise business?
Naturally, you’ll want to know that the average franchise fees are for a moving and storage unit franchise. It is important to note that fees can vary vastly from one franchise to another. However, preliminary research indicates that these franchises can cost anywhere from $200,000 and upwards of $10 million. Typical franchise fees range from $50,000 to $150,000. Other fees worth considering when starting your moving and storage franchise business include:
- Legal and accounting fees: $10,000 – $25,000
- Insurance: $10,000 – $30,000
- Advertising and marketing: $25,000 – $50,000
- Staffing expenses: $30,000 – $50,000
- Training and travel costs: $5,000 – $10,000
- Working capital: $50,000 – $100,000