Sorry it took me so long to come back to this thread. Thanks so much for all the replies!
Well, in theory I'm saving for the next kid, but in the meantime I have been giving all the clothes to my 2 nieces. When DD outgrows the clothes, I put it into storage, and when my nieces are ready for the clothes, I dig them out and send them to my sister-in-law. When they're finished using them, they send it all back and I re-store them.
Good point. In my case though, the clothing is stored in a big closet on the 3rd floor of my home so I doubt flooding would be an issue. Although now that I think about it, technically the roof could leak....
In my particular case, the storage closet I am using has a slanted roof and a lot of space is wasted because the tubs just don't fit in certain places because of the roof.