Yardi® Matrix's Q1 2024 Self Storage Supply Forecast suggests an expansion in near-term supply, while the coming years will show a decrease.
The last quarter of 2023 registered an increase in construction starts and the under-construction pipeline, influenced by an uptick in new development. Consequently, the near-term forecast for 2024 and 2025 has been upped by 10.9 percent and 12.5 percent, respectively.
Meanwhile, the forecast completions for the years 2026 through 2029 have been reduced in the latest update. Supply growth for 2026 and 2027 is expected to be around two percent of stock representing some 38 million NRSF.
“In the second half of 2023 the number of abandoned and deferred projects in our database has noticeably increased, growth in both the planned and prospective pipelines has stalled and the year-over-year change in street rates was negative in 2023,” say Matrix analysts.
In the fourth quarter of 2023, the planned pipeline rose by 1.43 percent, while the prospective stage remained flat throughout the year. The number of deferred projects grew 44.5 percent on an annual basis and the number of abandoned storage properties increased 104.2 percent compared to 2022.
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