**Self-Storage Construction Continues Slowing, but Pipeline is Fuller Than Expected**
The latest third-quarter 2025 data from Yardi Matrix confirms a continued slowdown in new self-storage development. Despite the deceleration trend, a larger-than-anticipated inventory of facilities already under construction at the end of the quarter has prompted an upward adjustment in the supply forecast. As a result, projected completions have been revised upward by 4.3% for 2025 and 4.6% for 2026. Forecasts for the years 2027 through 2030 remain unchanged.
As of the end of September 2025, Yardi Matrix reported identifying 31.54 million net rentable square feet (NRSF) in new construction starts—representing a 7.8% decline from the same period in 2024. Overall, construction starts for 2024 totaled 52.21 million NRSF across all tracked markets, marking a sharp 19.6% decrease from the 64.96 million NRSF recorded in 2023.
“Since the Great Financial Crisis, the self-storage industry has experienced significant growth, and it is now a mature asset class,” stated Yardi Matrix. The firm cautioned that, in the absence of new demand drivers, national self-storage supply growth exceeding 2.0% of total stock is likely to outpace long-term demand, potentially resulting in flat or negative rental rate trends in certain local markets.
