Deliveries and development add headwinds to street rates
SANTA BARBARA, Calif., Aug. 7, 2018 – The latest national self storage report from Yardi® Matrix shows that heavy new-supply deliveries and slowing economic fundamentals are dampening street rate growth in many U.S. metros.
The report, a compilation of data from more than 2,200 properties in the new-supply pipeline, shows that development activity has been pronounced in fast-growing cities as well as historically underdeveloped urban markets where supply is catching up to demand. Street rates for 10×10 units decreased 3% year-over-year nationwide in June 2018; by contrast, they rose 1% and 2% year-over-year in April and May, respectively.
Metros with the most units under construction and planned as a percent of existing inventory in mid-July were Nashville, Tenn.; Portland, Ore.; Boston; Denver; and San Jose, Calif.
The full national self storage report for July 2018 is available for download.
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