The self storage industry is being impacted by the problems shaping the housing market, according to the latest Self Storage National Report from Yardi Matrix.
The average annualized same-store asking rate per square foot for combined unit sizes and types averaged $16.57 nationally in November, a 4.2% drop on a year-over-year basis. Street rates also remained negative on an annual basis in November in nearly all top metros. Combined same-store rates for non-climate-controlled units decreased in all but one of the top markets tracked by Yardi Matrix on a year-over-year basis.
The report also found the asking rates for same-store climate-controlled units fell in all major metros. Yardi Matrix tracks a total of 5,028 self storage properties in various stages of development, including 883 under construction, 1,940 planned, 631 prospective, 1,489 abandoned and 85 deferred properties.
“Rising housing costs and incomes that have not kept pace has resulted in one of the most unaffordable housing markets in the past 30 years, stifling home sales. As a key storage demand driver, a slowdown in the housing market is dampening occupancy and weighing down street rates,” said the Yardi Matrix report.
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