Self Storage Demand Slows and Street Rates Sag, Yardi Matrix Reports

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Lack of month-to-month growth defies typical seasonal trend

SANTA BARBARA, Calif., July 20, 2023 – Responding to moderating demand, self storage street rates remained healthy through the second quarter of 2023, according to the latest National Self Storage Report from Yardi® Matrix.

Nationally, the average rate for self storage units overall remained unchanged month-over-month. Historically, rates tend to increase in the summer months. With the exception of 2019, every year from 2017 to 2022 experienced a May-to-June rent increase of at least 0.7 percent.

“Muted monthly rate growth this year may signal that move-ins are slowing this leasing season as demand cools,” say Matrix analysts. “Move-in activity has slowed this year as home sales have cooled, especially compared to the robust home sales in early 2022.”

In June, national street rates for 10×10 NON CC units decreased 3.8 percent year-over-year. Rates for 10×10 CC units fared worse, falling 5.3 percent year-over-year, the largest recorded decline since May 2020.

Annual street rate growth continued to be negative for almost all of Yardi Matrix’s top 31 metros in June. Street rates for 10×10 NON CC units were down year-over-year in 97 percent of the top 31 metros.

Learn more about the state of the self storage sector nationwide.

Yardi Matrix tracks a total of 4,751 self storage properties in various stages of development, including 810 under construction, 1,913 planned, 622 prospective, 1,353 abandoned and 53 deferred. Matrix also maintains operational profiles for 29,824 completed self storage facilities across the United States, bringing the total data set to 34,575.

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, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 8,500 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.

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