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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