Self-storage had a great 2021. Across the U.S., rental rates grew for both climate-controlled (CC) and non-climate-controlled (NON CC) units. What’s more, thousands of new properties started construction or planning, reflecting widespread enthusiasm among developers and investors.
Demand is particularly high in relocation hotspots
Relocation hotspots like Houston, Miami, Tampa and Las Vegas were among the top performers for year-over-year growth. Houston took the number one spot, at more than 13%.
People and companies have flocked to this region during the pandemic, driven by remote work and drawn by good weather and lower costs. As a result, the housing market has become highly competitive. Until the housing market cools off, it’s unlikely that self-storage will see any pressure to slow their rate growth.
Biggest cities growing slower, but still growing
In the largest metropolises, like New York and San Francisco, self-storage rental rates still climbed, but at a much lower rate. San Francisco in particular saw 0% growth for CC units and only 2% for NON CC units. These cities have seen major exoduses due to the pandemic, limiting overall demand.