Self Storage Market Outlook – July 2024

Read the latest Yardi Matrix Self Storage Market Outlook.

On a monthly basis, 19 out of the 30 metros saw advertised asking rent growth, eight saw contractions, while three remained flat, according to the latest Yardi Matrix self storage market outlook.

Key Takeaways

• As of June, advertised asking rent movement continued to be negative, with the average annualized same-store advertised asking rent per square foot down 4.9 percent for the combined mix of unit sizes and types.
• Annually, the same-store advertised asking rates for the combined non-climate-controlled units were down 4.5 percent.
• On a monthly basis, 19 out of the top 30 metros tracked by Yardi Matrix showed positive growth, eight saw contractions, while three remained flat, as the advertised street rates per square foot were up 0.2 percent to $16.45.
• The national under-construction pipeline equaled 3.6 percent of existing inventory, unchanged from the previous month.

Advertised asking rents rising month-over-month, but typical seasonality muted

In June, the national average annualized same-store advertised asking rent per square foot was $16.45 for the combined mix of unit and sizes. This figure marked a 4.9 percent decrease compared to June 2023. Rates for combined non-climate-controlled units fell by 4.5 percent on a yearly basis as of June, while same-store advertised asking rates for climate-controlled units decreased 5.5 percent on an annual basis. A preference for smaller and climate-controlled units has led to market saturation, pushing down the advertised rents for these unit types.

In June, all the top 30 metro areas had negative advertised street rate growth year-over-year. The decrease in combined same-store advertised rates for non-climate-controlled units and same-store climate-controlled units ranged between -1.5 percent in New York and -10.5 percent in Atlanta.

Under construction activity steady

On a national level, new supply in the last three years has accounted for 8.5 percent of stock at the beginning of the period. Meanwhile, deliveries equaled 2.8 percent of that amount during the previous 12 months.

Las Vegas surpassed Philadelphia, as the metro had the largest amount of new supply delivered over the past three years, equal to 14.4 percent of starting stock and an inventory under-construction registering at 3.7 percent of existing inventory.

Yardi Matrix keeps track of a total of 3,370 self storage properties in various stages of development across the U.S. The development pipeline included 858 under construction, 2,011 planned and 501 prospective properties. As of June, the under-construction portion of the pipeline accounted for 3.6 percent of stock, unchanged from the previous month.

Phoenix registered the largest increase in construction activity as of June, seeing a 60-basis-point month-over-month gain, followed by Columbus, Raleigh-Durham, Dallas-Fort Worth, Chicago and Washington DC. The largest monthly decrease was in Boston and Seattle, with construction activity shrinking 70 basis points to 4.4 percent and 2.3 percent, respectively.

Read the full Yardi Matrix National Self Storage Market Outlook: July 2024