03/10/2025
As we continue evaluating investment opportunities, we’re keeping a close eye on self-storage trends. The latest data from Yardi Matrix shows signs of stabilization in the market, with slowing rent declines, selective metro-level rent growth, and a shrinking supply pipeline.
While national rates are still down year-over-year, the pace of decline has slowed significantly, improving from -2.4% in November to -1.2% in January. Some markets are already seeing positive movement, with rent increases in 10 of the top 30 metros for non-climate-controlled units and 9 metros for climate-controlled spaces. Cities like Washington, D.C., Tampa, San Jose, Seattle, and Chicago are leading the way in rent growth.
On the development side, supply constraints are playing a key role in this shift. The share of projects under construction has dropped again, and new supply deliveries are expected to decline by 15% in 2025, continuing to decrease through 2027. This slowdown in new inventory should help stabilize pricing over time.
Another trend shaping the industry is the growing role of AI in self-storage operations and investment strategies. From dynamic pricing models to improved facility management, operators are leveraging technology to optimize performance and adapt to changing market conditions.
So, is the market expected to improve? The data suggests we’re at a turning point. While a full rebound isn’t here yet, conditions are becoming more favorable for price stabilization and future growth. We’ll continue monitoring these trends as we assess new opportunities in the space.
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