The self-storage industry is currently in a phase of stabilization following a decade of rapid growth and limited supply. While there are still opportunities available, the market is beginning to level out.
However, this trend does not apply to tertiary markets. According to a recent report from RentCafe, smaller metropolitan areas with populations under 2 million are experiencing high demand and limited supply for self-storage units.
Maria Gatea, Yardi Market Analyst and author of the report, explains that these markets have historically been overlooked by developers who tend to focus on larger urban areas. As a result, many tertiary markets now face an inventory shortage while demand continues to rise.
One factor driving this demand in smaller areas is migration. These markets often offer more affordable housing options and better work-life balance compared to larger cities. For example, Springfield MA has seen an 11% increase in population over the past decade due its affordability and quality of life offerings.
Other New England metros highlighted as potential growth areas for self-storage include Providence-Warwick RI-MA and Worcester MA-CT MSAs. In addition,the report identifies Honolulu as another undersupplied market along with several western US cities such as Boulder CO,Greeley CO,and Chandler AZ .
Meanwhile,the South remains well-supplied when it comes to self-storage facilities thanks largely due development efforts keeping pace with growing populations.However,some untapped potential exists even within these regions,such as McAllen TX which has seen significant population growth but lacks adequate storage space at only 6
