08/26/2026
Consumer spending accounts for roughly 70% of the U.S. economy, which is why it is monitored so closely. Self-storage investors pay close attention when it slows down.
One recent signal: U.S. retail sales fell 0.6% in July, the first decline in nine months, according to Reuters coverage of the Commerce Department’s latest retail sales report. Moody’s Ratings has projected real consumer spending growth to slow to about 1.5% in 2026.
Tighter household budgets can trigger specific decisions. People delay buying a home. They downsize. They relocate somewhere more affordable. They combine households. Each of those transitions can create a life event, and often, a move.
History gives us an interesting reference point. Following the 2001 recession, existing home sales rose from 5.33 million in 2001 to 6.78 million in 2004, an increase of roughly 27%. Economic pressure does not necessarily mean people stop moving. It can change why and how they move.
Those transitions may create incremental storage demand, but the opportunity is local. It shows up in the submarkets where more households are moving, downsizing, or combining.
The national economic number is just the signal. The work is figuring out where those household decisions are actually showing up, and how investors may benefit.
Which asset classes may be positioned to benefit during periods of economic pressure? Because self-storage may benefit from an economic recession as life events occur more frequently - is it worth consideration for inclusion in your portfolio?
Sources:
Reuters, “US retail sales post first decline in nine months in July,” August 14, 2026
Retail Dive, citing Moody’s Ratings, “Consumer spending growth could slow in 2026”
