Self Storage National Report – May 2024

Street rates were up for 28 out of the top 30 metros, the latest Yardi Matrix report shows.

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A slow-moving housing market continues to affect the weak demand for self storage, although there is some optimism that street rates will increase beginning with the summer leasing season, according to Yardi Matrix analysts.

Street rates have remained negative on an annual basis as of April, as the overall national street rate per square foot fell to $16.35, a 4.5 percent decline compared to the nationwide average recorded a year earlier. Annually, street rates for the 10×10 non-climate-controlled and climate-controlled units declined in all of the top 30 metros tracked by Yardi Matrix.

On a monthly basis, the average street rates per square foot for the 10×10 non-climate and climate-controlled units combined were up by 0.7%, or a 12 cents increase to $16.35. Out of the top 30 metros tracked by Yardi Matrix, 28 registered a positive monthly growth, with Sacramento and Austin as the only metros remaining flat. Denver led the gains, with a 1.9 percent uptick month-over-month for same-store combined street rates.

Construction pipeline remains flat

As of April, there were 3,542 projects in all stages of development nationwide. The new-supply pipeline included 868 under construction, 2,062 planned projects and 612 prospective properties. The under-construction projects made up 3.6 percent of the total stock, down 10 basis points from the previous month.

Orlando’s new supply remains at the top, representing 8.9 percent of existing inventory, predicted to create headwinds as the market is underperforming. San Jose had the largest month-over-month decrease in construction activity, down 110 basis points to 0.6 percent. Nashville saw the largest uptick in construction activity, up 80 basis points to 3.1 percent.

Read the full Yardi Matrix national storage report here.

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