National advertised rate trend continued to be negative as of October
SANTA BARBARA, Calif., November 20, 2024 –Weakened demand fundamentals influenced by the housing market continue to impact self storage sector asking rents, according to the latest Self Storage National Report from Yardi® Matrix.
The annualized same store advertised asking rate reached an average of $16.35 nationally in October 2024. That is a 3.1 percent decrease on a year-over-year (YoY) basis, but an improvement compared to the previous -3.8 percent drop in September and -3.9 percent in August.
“Although advertised rates are declining month-over-month going into the slower winter season, advertised rate growth year-over-year continues to improve compared to aggressive rent drops at the end of last year, and should continue to improve going into 2025,” say Matrix analysts.
In other storage data news, Matrix’s Q4 Self Storage Supply Forecast shows an increase in the sector for the near term, while its projections on the long run remain mostly unchanged.
The under-construction pipeline contracted moderately but is still significantly lower compared to 2023 levels. Consequently, the forecast for 2025 has been increased by 7.8 percent, while the forecast for 2026 has been increased six percent.
It is also expected that new supply will decline to two percent of inventory in 2027 and will decrease further to 1.5 percent of inventory for 2028 and 2029. Gain more supply forecast insight.
Yardi Matrix tracks a total of 3,389 self storage properties in various stages of development, including 823 under construction, 2,066 planned and 500 prospective properties. Yardi Matrix also maintains operational profiles for 32,623 facilities, bringing the total data set to 36,012.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable housing, student housing, vacant land, industrial, office, retail and self storage property types.
Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.
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