Self Storage Sector Now Considered Resilient

Key Highlights

• 2020 capped another decade of growth in self-storage sector
• People prioritized location over space in apartment choices

Self-Storage Sector Sees Decade of Growth

According to a recent report from RentCafe, the self-storage sector continued growing “rapidly” from 2011 through 2020.  A whopping 295M square feet of self-storage space was added over the last decade.

This recent RentCafe report indicated that despite a slowdown in apartment construction during the second half of the last decade, “self-storage continued growing at a rapid pace as people prioritized location versus space in their apartment choices.”

Strong Correlation Between New Apartments and Increased Self-Storage Supply

Dallas ranked number one in terms of both new apartments and additional self-storage space.

Over the last ten years, Dallas saw a spike in new residents to the tune of +1.2M.  With those new residents, 173,000 new apartments came online and 16.2M more square feet of self-storage space emerged.

New York placed second with 15.7M square feet in self-storage space and 140,000 new apartments since 2011.

Both data points come to us from Yardi Matrix and the US Census Bureau

Check Out Most Active Markets for Self-Storage Development from 2011 – 2020

S-S Construction                       Apartment Construction

16.2M sq. ft.             Dallas              173,000 apts

15.7M                    New York            140,000

14M                       Houston             125,000

11.2M                    Chicago               65,000

8.7M                     Phoenix                58,000

8.1M                     Atlanta                 79,000

8M                        Miami                   89,000

6.49M                   Denver                 72,000

6.48M                   Austin                  84,000

6.2M                    Washington DC     118,000

Cities with Most Dramatic Growth on Percentage Basi

Looking at the self-storage growth over the last decade by percentages, these are the cities with the most attention-getting growth within the self-storage sector

• Milwaukee – +69&
• Austin – +50%

According to YardiMatrix’s Doug Ressler, Madison WI, Des Moines IA, Phoenix and Atlanta are stand outs in terms of growth.

Increased Demand Translates into Increased Rents

Honolulu has long had the highest self-storage rents in the nation.

Check out the highest self-storage rates, 2017 vs. 2021.  (A street rate is the average monthly rate for a 10X10 non-climate controlled storage unit.”

Honolulu HI – $260

San Francisco CA – $208

Los Angeles CA – $193

New York NY – $185

San Jose CA – $177

Oxnard CA – $172

San Diego CA – $163

Bridgeport CT – $157

Seattle WA – $156

Boston MA – $146

Thanks to therealdeal, RentCafe, US Census Bureau and YardiMatrix.

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