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30 Sep, 2024
Analysis | Latest
How Austin’s Tech Growth and Population Surge Drive Self-Storage Demand
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Written by James McLean

James McLean is the Head of Business Development at Radius+. James helps maintain external relationships with clients and assisting internally with the sales process. He also, manages internal data processes working alongside the operations team to ensure we are supporting high level data quality.

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Austin,TX is a city that has seen tremendous growth. A large number of tech companies have chosen Austin to operate out of due to abundance in top talent from the prestigious universities in the area, lower cost of living and business friendly tax policies have landed Austin, TX as CompTIA’s 2022 best place for Tech Jobs.

This has created the perfect storm of job and population growth but with a large number of high earning individuals, with extra discretionary income to spend- a driver for Self Storage demand.

Austin, TX experienced massive supply growth in 2017 and 2019 (10.6% and 9.3% new supply added relative to total supply in each year respectively) that has since cooled off. However, while rates spiked during COVID-19 and even saw significant numbers in the summer of 2023, rates have dropped to almost pre-pandemic numbers since. The expectation is that once the housing market unfreezes with interest rates getting cut people will migrate to Austin driving rates and Self Storage demand back up.

image of REITs 10x10 CC avg price per sq ft of Austin Tx

https://www.comptia.org/content/research/best-tech-cities-it-jobs