Combined same-store rates are down year-over-year in all the top metros
(SANTA BARBARA, Calif., March 27, 2024) – The self storage real estate sector is facing headwinds and continues to be affected by current market conditions, according to the latest Self Storage National Report from Yardi® Matrix.
Annual street rate growth was still negative in February. The average annualized same-store asking rent per square foot for combined mix of unit sizes reached an average of $16.37 nationally last month, marking a 3.6 percent decrease on a year-over-year basis.
All top metros registered a negative street rate on an annual basis in February. Combined same-store rates for non-climate-controlled units and climate-controlled units decreased in all the top metros tracked by Yardi Matrix on a year-over-year basis.
“There is hope that a turnaround in the housing market later this year or early 2025, contingent on interest rates cuts, could unlock pent-up demand for housing and migration, thus fueling demand for self storage,” say Matrix analysts.
Investors are showing precaution due to market uncertainty. Nevertheless, despite the impact of high interest rates, there is still interest in self storage development.
Yardi Matrix tracks a total of 5,148 self storage properties in various stages of development, including 880 under construction, 2,031 planned, 592 prospective, 1,546 abandoned and 99 deferred properties. Yardi Matrix also maintains profiles for 30,294 operational facilities, bringing the total dataset to 35,442.
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