What Is the Cost of a Storage Unit, and Is It Really Worth the Investment?

There are various reasons people seek out storage units, and the demand for them continues to rise. A Research and Markets report revealed that in 2021, the global self-storage market was valued at $51.32 billion. By 2027, it’s projected to grow to $71.37 billion.

Storage units provide a secure and convenient option for storing household goods or valuable items when there’s simply not enough space at home. While the long-term expense of a storage unit may exceed the value of the items inside, it’s a useful short-term solution for things like home renovations, moves, or downsizing. Businesses also use them to store excess office supplies, furniture, or files. Temperature and humidity-controlled storage can be ideal for things like inherited antiques, fine art, or cars that require special care during storage.

Before deciding to rent a storage unit, you’ll need to weigh how much you’re willing to spend to store items that aren’t immediately necessary in your daily life. Below, experts explain the ins and outs of storage units, their costs, and how to determine if they’re worth the investment.

What exactly is a storage unit, and how does it operate?

Storage units are essentially empty, often cube-shaped spaces designed to store a variety of items like household furniture, appliances, vehicles, or business assets. There are typically two kinds of storage facilities: full-service and self-service.

Full-service storage companies handle everything from picking up your belongings to managing transportation logistics and creating an inventory of your items. This level of service usually comes with a higher price tag, which might include insurance for damage or replacement. However, full-service facilities offer limited access to your stored belongings. Since you didn’t personally load the items into the unit, you won’t be able to access them at your convenience. You’ll likely need to arrange a visit with a staff member, and you can coordinate with a moving company to have specific items delivered to your home or office directly from the inventory.

Self-storage units, on the other hand, are more commonly found and are often located in parking lot-style facilities or fully automated buildings. You can access your storage space anytime by using a code or key. You’re responsible for moving, cataloging, and storing your items, though the company may have rules on what can and can’t be stored. It’s up to you to keep track of your belongings and adhere to the guidelines set by the storage provider.

Different Types of Storage Units

There are several types of storage units available. Here are the most common options:

• Climate-Controlled: Sometimes simply protecting your items from rain and wind isn’t enough. These units help prevent mold and moisture buildup, particularly during hot and humid seasons. With precise temperature and humidity control, they are ideal for storing fine art, antiques, electronics, wooden furniture, and important documents.
• Outdoor and Drive-Up: Much like home garages, these units are accessed from the outside and offer a high level of convenience. As the name suggests, you can easily drive up to these units to load or unload your items.
• Indoor: These units are located inside a building, often in multi-story facilities, with several units per floor along long hallways. They provide more protection against elements like rain and snow.
• Portable Containers: Mobile storage is perfect for people on the move. Companies such as Pods offer containers on wheels that you can use during your relocation. Once your belongings are packed, you can either have them delivered to your new home or stored at a commercial facility for later use.
• Vehicle Storage: This option is designed to store personal vehicles, including cars, boats, RVs, trailers, and more. It’s also used for show cars or antique vehicles. If you’re traveling between countries with different driving orientations, you might store your car until you can drive it in the right location. Vehicle storage may include basic maintenance to ensure the vehicle remains in working order, such as running it periodically and moving it occasionally.

What Is the Cost of a Storage Unit?

The price of a storage unit can vary depending on factors like the type, size, location, security features, and climate control. On average, renting a storage unit costs around $190 per month, but this can fluctuate based on various factors. According to a 2022 Consumer Affairs report, the typical cost for different unit sizes is approximately $90/month for a 5 by 5 foot unit, $160/month for a 10 by 10 foot unit, and $290/month for a 10 by 30 foot unit.

Many storage providers advertise tempting introductory rates that seem like a great deal. However, these rates are only advantageous if you plan to use the unit for a short period. Be sure to check the fine print. Even units with monthly rental fees might require a minimum rental commitment. The real cost of the unit isn't just the monthly rate, but the total cost over the entire period you rent it.

Does renter's insurance cover storage units?

In most cases, yes, renter's insurance does cover items stored in a storage unit—but with certain restrictions. To be eligible for coverage, your belongings must be damaged or lost due to a covered event, such as theft, vandalism, or weather-related incidents. Additionally, the coverage might be capped, either as a percentage of your overall personal property coverage or a set dollar limit. So, if you’re storing valuable items, it's important to fully understand the details and limitations of your insurance policy.

So, are storage units worth it?

If you’re thinking about storing items that are simply extra clutter, Ann Fechner from Guerilla Realty says it’s not worth it. She states, “The cost of a storage unit surpasses the value of its contents when the items have become unnecessary to your daily life and have been forgotten in your mind.”

If you’ve inherited items that you’re not ready to unpack, or if you’re facing a short-term housing transition, a storage unit can be a smart choice. Instead of hastily discarding valuables, storage gives you the time you need—so long as you actually return to retrieve them.

Shavon Roman, a Financial Coach based in Atlanta, recommends not spending more than 20 percent of the value of the stored items over the entire storage contract period. To achieve this, she advises, “Review all associated costs. The advertised monthly rate often doesn’t include expenses like insurance, sales tax, or climate control.”

For many homeowners, it might be wiser to sell or donate household items that will be stored for more than 12 to 24 months. Trends and tastes shift quickly, and by the time you retrieve your sleeper sofa, you might no longer want it—or you may find it cheaper to replace than to have kept it in storage.

However, Fechner points out that short-term storage can be incredibly useful in real estate transactions. When selling your home, storage units are invaluable during staging, helping to clear out your personal items. “Spending on a stager and a $150/month storage rental for a couple of months can lead to a quicker, higher sale—a solid investment for any seller,” Fechner says.

Similarly, small businesses that need to store inventory or rotate large items may consider storage a regular business expense. As long as the revenue generated significantly exceeds the cost of the unit, the value of the storage unit becomes undeniable.

Regardless of the situation, it’s always wise to approach a storage unit contract with caution. “Storage facilities rarely report your on-time payments to credit agencies,” explains Roman. “However, if you miss a payment, the facility could send your account to collections, and that report could negatively impact your credit score.”

This can even lead to storage unit auctions, and things can get messy. “Depending on the lease, a facility might attempt to recover the unpaid balance by auctioning off the unit,” Fechner explains. “If the auction doesn’t cover the debt, and the remaining balance goes unpaid, your credit could take a hit, making it harder or more expensive to rent or purchase in the future.”

Instead of relying on storage units, think about giving away, donating, or discarding anything you haven’t used in the past year. Letting go of items that no longer serve a purpose can be a therapeutic experience. If you find yourself in a pinch, Roman suggests considering crowdsourced storage options through apps like Neighbor, or even reaching out to friends and family to use their attic, basement, or garage space on a more informal basis.