Inheritance Drives Surge in Storage and Decluttering Industries

A growing trend in New Zealand is reshaping the storage and decluttering industries, as inheritance becomes a significant factor in the surge of demand for storage solutions. With an estimated $1.6 trillion expected to change hands over the next 25 years, the need for storage space is increasing as families grapple with the belongings passed down from previous generations.

At National Mini Storage in central Auckland, the scene is typical of a bustling storage facility. Customers frequently arrive, some wheeling in carts full of items, while others retrieve their possessions from various-sized units. A monthly fee of $217 can provide clients with a 2×1 metre space, while larger units, comparable to a single car garage, command fees upwards of $532.

The rise in the storage industry coincides with a significant transfer of generational wealth in New Zealand, where many baby boomers and members of the silent generation are preparing to pass on the vast collections of items acquired over their lifetimes. According to Sam Scott, a self-storage industry specialist at the real estate firm CBRE, the demand for storage is expected to escalate as housing continues to become more compact, especially in urban areas like Auckland. “Homes are getting smaller, but we still have lots of stuff,” Scott noted.

New Zealand currently has a self-storage supply rate of 2.39 units per 100 people, which pales in comparison to the United States, where around one-third of people have rented a unit at some point. The aging population, coupled with the rise of medium- and high-density housing and e-commerce businesses, is expected to drive further demand for storage solutions.

Scott elaborated on the changing landscape: “Historically, families would use their garages for storage, but with the increasing number of apartments and townhouses, that flexibility is diminishing. People are often in transition—some are moving homes or dealing with the estate of a deceased relative, looking for temporary solutions to store belongings until they decide what to do with them.”

The market is also witnessing a trend toward corporatisation, with larger companies acquiring smaller facilities. A notable transaction involved Australia’s National Storage REIT, which recently accepted a AUD $4 billion takeover offer from a consortium backed by Brookfield Asset Management. This deal pushed National Storage’s shares to an all-time high of AUD $2.810.

In a similar vein, National Mini Storage, which has 13 locations in Auckland, was recently acquired by Kennards, an Australian-owned enterprise valued at over $4 billion. Other prominent players in the New Zealand market include Storage King and Total Storage. Prices vary significantly based on location; for instance, while storage for cars, boats, or RVs at National Mini Storage is priced at $445 per month, similar services in Invercargill are available for just $140.

The Self Storage Association of Australasia reports that the square meterage of self-storage space per capita in Auckland has increased by approximately 50 percent since 2013. Nationwide, New Zealand boasts around 129,000 storage units across 780 facilities, offering a total of 1.29 million square metres of storage space.

As the market grows, smaller operators are also finding their niche. For example, East Side Storage in Rotorua has expanded from 46 to 120 units since its owner acquired the business four years ago. He noted that the operation is straightforward, focusing on security and direct debit payments for customers. “It’s a great cashflow business with lower risk because you’ve got multiple tenancies,” he explained.

Amid this storage boom, another industry has emerged—professional organisers and declutterers. Beks Holmes, founder of The Decluttering & Organising Co., has built a team to assist primarily women aged between 40 and 60 in managing their belongings. Services include in-person organising sessions and online coaching, aimed at providing motivation and accountability.

Holmes emphasised the emotional aspect of decluttering, particularly when clients are faced with sorting through inherited possessions. She highlights the importance of understanding that not everything needs to be kept. “So often the answer is no. ‘We don’t want the family crystal’ or ‘We don’t want the silver’; they don’t want that stuff,” she stated.

As both the storage and decluttering industries evolve, they reflect broader shifts in lifestyle and demographics. The increasing need for storage solutions underscores the ongoing challenge of managing inherited belongings while adapting to modern living environments.