High inventory levels cool growth although demographics remain positive
SANTA BARBARA, Calif., Feb. 25, 2020 – Supply and development pipeline levels outpaced demand for self storage space in January 2020, producing a nationwide drop in street rates.
The most recent supply and rate recap from Yardi® Matrix documents a 0.9% year-over-year street rate decline for standard 10×10 non-climate-controlled (NON CC) units. Rates for similar-size climate-controlled (CC) units fell by 2.3%. These figures represented about 53% and 77% of the rate declines for NON CC and CC units, respectively, recorded in December 2019. And “demand for self storage appears to be healthy in many markets, supported by robust employment growth and population gains,” the report says.
Demand for self storage in January was strongest in Las Vegas, where street rates for all 10×10 units increased 1.9% year-over-year. Philadelphia and Pittsburgh, metros with limited inventory, experienced the biggest month-over-month increases in development activity, 1.9% and 1.5% respectively. Pittsburgh also saw the steepest year-over-year CC street rate decline at 7.4%.
Get the latest data on Las Vegas, Philadelphia, Pittsburgh and 28 other U.S. metros in the Yardi Matrix national self storage report for February 2020.
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