The Legacy of 'Stuff': Unraveling the Impact of Inheritance on Storage and Decluttering Industries
In the heart of Auckland, a woman emerges from an elevator, her gym attire a stark contrast to the task at hand. She carries a box, a reminder of the seasonal treasures stored away, as she navigates the bustling car park of National Mini Storage. This scene is a microcosm of a larger trend, a story of inheritance and the evolving nature of our possessions.
The storage industry is witnessing an unprecedented boom, fueled by the largest intergenerational wealth transfer in history. In New Zealand alone, an estimated $1.6 trillion is expected to change hands over the next quarter-century. Alongside financial assets and property, baby boomers and the silent generation are passing down a lifetime's accumulation of belongings, creating a unique challenge for the next generation.
But here's where it gets controversial: the problem of finding space for these heirlooms is exacerbated by urban intensification, particularly in cities like Auckland. Sam Scott, an expert in the self-storage industry, observes, "Homes are getting smaller, but we still have lots of stuff." This contradiction is at the heart of the storage industry's growth.
With a supply rate of self-storage units at 2.39 per 100 people in New Zealand, the industry is relatively small compared to countries like America, where renting storage units is a common practice. However, with an aging population, increasing urban density, and the rise of e-commerce businesses, demand is expected to surge.
"I meet storage managers and hear incredible stories," Scott shares. "Historically, people had space in their garages, but with more apartments and townhouses, that flexibility is gone. People are moving, downsizing, and often dealing with the possessions of loved ones who have passed away." These life transitions create a unique demand for storage solutions.
The industry is evolving, with a corporatization trend emerging. Fewer single operators and more large corporations are entering the market, buying up smaller facilities. Scott points to a recent deal involving National Storage REIT, an Australian company, which highlights the growing interest and investment in the storage sector.
National Mini Storage, now acquired by Kennards, offers a range of storage solutions, from car and boat storage to climate-controlled wine cellars. The cost varies depending on location, with premium rates for desirable areas. Makala Ffrench Castelli, CEO of the Self Storage Association of Australasia, notes that Auckland's self-storage space per capita has grown by 50% since 2013, a testament to the increasing demand.
Smaller operators, like East Side Storage in Rotorua, are also contributing to market growth. The owner, who prefers anonymity, describes a successful business model, increasing unit numbers and profitability. "It's a simple business," he says, "with security, cameras, and a steady cash flow." However, he notes the traditional reluctance of banks to finance such ventures due to short-term leases.
While storage facilities provide solutions, another industry has emerged to address the emotional and practical challenges of managing possessions: professional organizers and declutterers.
Beks Holmes, founder of The Decluttering & Organising Co., shares her journey, starting the business almost a decade ago. Her team now caters to a predominantly female clientele aged 40 to 60. "Decluttering is hard work for us and often emotional for our clients," Holmes explains. "Inheriting a parent's possessions or children leaving home can be catalysts for seeking help."
Holmes encourages a shift in mindset, especially for those holding onto items for others. "Ask them now. Get a family chat going." She believes in creating spaces filled with one's own cherished items, a philosophy that resonates with many of her clients.
As we navigate the complexities of inheritance and the evolving nature of our possessions, the storage and decluttering industries offer practical and emotional support. It's a story of legacy, transition, and the ongoing challenge of finding space for the things that matter.
