Self Storage Demand Parallels Job and Population Growth, Yardi Matrix Reports
Southwestern metros lead in new supply development
SANTA BARBARA, Calif., May 24, 2019 – A new national report from Yardi® Matrix shows that substantial job growth and population gains continue to boost demand for self storage in secondary markets such as Portland, Ore., Nashville, Tenn., and Seattle. Meanwhile, the national new supply pipeline for self storage projects as a percent of existing inventory fell 0.3% from April to May 2019, reflecting a significant number of newly completed projects.
Street rates for standard 10×10 non-climate controlled units fell 1.7% year-over-year nationwide in April but remained flat compared to March. Southwestern metros such as San Diego, Las Vegas, Los Angeles and Phoenix registered some of the strongest rate gains for new, climate-controlled stock.
The historically undersupplied New York City metro has 130 stores under construction or planned. Developers are focusing on outer boroughs with strong population gains and lower construction costs. Across the country, Phoenix’s solid new-supply pipeline—14% of the total inventory—reflects the metro’s rapid employment and population growth.
The May 2019 supply and rent recap, which is available for download, compiles data from more than 26,000 U.S. self storage properties, including more than 2,000 properties in the development pipeline.
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