Street rates are up both month-over-month and year-over-year in April
SANTA BARBARA, Calif., May 19, 2021 – As Americans continue to determine where and how they’ll live and work in the aftermath of the pandemic, the self storage industry is in continued demand.
National street rate performance in April recorded major improvements compared to April 2020. National average street rates for 10×10 non-climate-controlled (NON CC) units increased 8.0% year-over-year, with the average for 10×10 climate-controlled (CC) units up 9.5%. Street rates also saw strong positive growth month-over-month, rising 1.7% for 10×10 NON CC units and 2.2% for 10×10 CC units.
Regionally, rates for 10×10 CC units increased the most year-over-year in San Jose (17.7%), Charleston (16.8%) and the Inland Empire (14.8%). The markets that had the least growth compared to April 2020 for 10×10 CC units—including Nashville (4.0%), Pittsburgh (4.5%) and Columbus (4.7%)—still had healthy rate growth.
“Self storage continued to benefit from ongoing demand tailwinds in April. Street rates had another strong month and continue to rise nationwide, while there has not been a meaningful shift in development activity,” states the report. Development volume will be one of the major factors for maintaining strong sector fundamentals moving forward.
Yardi Matrix tracks a total of 2,219 U.S. self storage properties in various stages of development—including 582 under construction, 1,206 planned and 431 prospective properties. From March to April, the national new-supply pipeline as a percent of existing stock increased by 0.1%. The share of projects in planning or under construction stages was equal to 8.3% of existing inventory in April. Matrix also maintains profiles for 26,673 operating self storage facilities, bringing the total data set to 28,892.
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