Self storage industry sees declining demand

The self-storage industry is seeing a decline in demand as a result of the housing market slowdown, 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, which is a 4.2 percent drop on a year-over-year basis. Street rates also remained negative on an annual basis in November in nearly all top metros.

"Rising housing costs and incomes that have not kept pace has resulted in one of the most unaffordable housing markets in the past thirty years, stifling home sales. As a key storage demand driver, a slowdown in the housing market is dampening occupancy and weighing down street rates," say Matrix analysts.