Yardi Matrix reports continued street rate growth, just shy of historic May 2021 gains
SANTA BARBARA, Calif., July 21, 2021 – As the multifamily industry records historic growth and single family home rentals make major gains, the self storage industry continues to prove its resilience.
Yardi® Matrix has documented the consistently strong performance of the self storage industry throughout the pandemic, which continued in June. On a national level, street rates for 10×10 non-climate-controlled (NON CC) units rose 10.6% compared to June 2020, while national rates for 10×10 climate-controlled (CC) units were up 12.7% year-over-year.
This marks some of the best annual rate performance both unit types have experienced since Yardi Matrix began tracking storage rates, falling only slightly below the record year-over-year growth seen in May 2021.
“With national street rates reaching prices not seen in years and new supply forecasted to moderately slow through 2026, the outlook for storage remains positive. Self storage has been one of the best-performing real estate sectors—if not the best performing—in the last 18 months,” states the report. Month-over-month, national street rates also saw positive growth, increasing 80 basis points for 10×10 NON CC units and 70 basis points for CC units of the same size.
Yardi Matrix tracks a total of 2,303 self storage properties in various stages of development—including 564 under construction, 1,261 planned and 478 prospective properties. The national new-supply pipeline as a percent of existing inventory increased by a slight 0.2% month-over-month in June, and the share of existing projects in planning and under construction stages accounted for 8.3% of existing inventory. Yardi Matrix also maintains operational profiles for 26,815 completed self storage facilities across the United States, bringing the total data set to 29,118.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.