Special Report
Self-Storage National Report
3Q 2024
Self-Storage Demand Poised to Improve
Following Inflation-Induced Tempering
Greater household formation underscores self-storage use. The demand outlook for self-storage continues to rise as easing inflation pressures have allowed household formation to accelerate. After CPI increased nearly 9 percent year-over-year in June of 2022, the pace of household formation slowed by half and apartment absorption turned negative. Both trends have since reversed. Nearly as many households formed in the first half of this year as in all of 2023, while apartment net absorption surged to a 10-quarter high between this April and June. As the creation of a household, particularly in a new city, is a prominent driver of self-storage use, this momentum is promising for the sector. National self-storage vacancy will rise in 2024 by its smallest margin in three years despite stubbornly consistent pressure from new supply. A moderating influence on higher vacancy has also come from the nuanced rent dynamics now taking place in the industry.
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