Annual street rate growth remained negative in April, operators hope for summer demand resurgence
SANTA BARBARA, Calif., May 21, 2024 – Performance in the self storage sector is still on a downward trajectory. The slowdown in the housing market is leading to weaker demand, the latest Self Storage National Report from Yardi® Matrix shows.
The average annualized same store asking rent reached an average of $16.35 nationally last month. That accounts for a 4.5 percent decrease on a year-over-year (YoY) basis, but a 70-basis point uptick month-over-month.
All top metros registered negative street rate movement on an annual basis as of April. 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 YoY basis.
“However, operators remain optimistic that existing customer rate increases will help hoist new customers to in-place rates quickly, in addition to increasing street rates going into the busy summer leasing season,’’ say Matrix analysts.
Yardi Matrix tracks a total of 3,542 self storage properties in various stages of development, including 868 under construction, 2,062 planned and 612 prospective properties. Yardi Matrix also maintains operational profiles for 30,864 facilities, bringing the total data set to 34,406.
Gain more information on the performance of the self storage sector.
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, 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.
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.