249. Self Storage Rates DROP Year-Over-Year, But There’s New Hope for Owners…
Self Storage Income
AJ Osborne
4.9 • 591 Ratings
🗓️ 18 June 2024
⏱️ 30 minutes
🧾️ Download transcript
Summary
Self storage rates see a severe year-over-year decline as owners brace for even more supply to come on the market during dwindling demand. What’s happening, and which markets are the most in danger? In this episode, we took some of the latest self storage industry stats on rates, demand, supply, and new construction to answer the question: Why are self storage rates falling, and when will they come back up? We even have data on the hardest-hit metro areas that YOU should watch out for.
We could be returning to “normal” as the booming demand from a few busy years starts to dry up. Markets that saw massive population growth are beginning to settle down, but all those shiny new self storage facilities are still around. If you’re a self storage operator in a market experiencing dying demand, what can YOU do to ensure you beat the competition? We’re sharing our secrets on how we make MORE money EVEN while dropping rates in today’s episode.
Got some unusual unit sizes at your facility? Changing your layout (if possible) could result in a considerable difference in occupancy. We’ll talk about a recent development deal we did that could have gone south very quickly if we hadn’t changed to THIS type of unit size layout. So don’t sit around waiting for customers to fill up your facility; do what WE’RE doing NOW before it’s too late!
What you’ll learn in today’s show:
- Latest storage industry stats and why street rates fell so much over the past year
- The self storage markets that are faring the worst and seeing the biggest price drops
- How high inventory can kill a self storage market and areas to steer clear of
- Why unit size demand changes over time and how to adjust with consumer preferences
- How to make more money even with lower demand and falling street rates
- Why casual self storage operators might not make it in 2024, but the real “business” owners will
Get my new book that teaches you everything I know about self-storage- https://a.co/d/aRSKcSq
Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/
📌 Ready to buy storage? Have your deals personally evaluated by AJ and our team! https://www.selfstorageincome.com/feasibility
📉 Take advantage of today’s market conditions and invest with us- https://cedar.cc/invest
Transcript
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| 0:00.0 | This market has seen a decrease, not only have they seen a decrease, but the new supply that is under construction so we know it will be coming is very large. |
| 0:09.3 | We're in a market cycle, everybody, that we're going back to normal. |
| 0:13.7 | We didn't used to be able to just buy anywhere, and rates everywhere went up and occupancy went up. |
| 0:19.3 | They were subject to natural market forces |
| 0:21.3 | and individual markets acted individually that's where we're returning now welcome everybody |
| 0:33.6 | to self storage income and it is now we're done with the long weekend |
| 0:39.6 | Memorial Day weekend uh hope you had a good time yeah man I got some son it was good |
| 0:44.6 | you know and hung out with the family really took some time to appreciate it you know |
| 0:48.3 | can't say enough about all the foundations that have been laid for this incredible |
| 0:53.4 | country that we live in. |
| 0:54.7 | Couldn't be more grateful and appreciative of those things. |
| 0:57.6 | And I hope everybody was able to take a step back and appreciate it as much as I did. |
| 1:02.4 | And yeah, hopefully you guys did as well. |
| 1:04.6 | Got some freedom in. |
| 1:05.7 | We did. |
| 1:06.8 | That's right. |
| 1:07.5 | We did. |
| 1:07.9 | Got swimming and the kids out and amazing the opportunities that we have and able to relax and the things that we have due to the sacrifice of others. Always important to remember that. |
| 1:20.0 | So truly is good. It's a good weekend. You know, it's interesting as we move into spring looking at rates across the markets seeing what's going on |
| 1:28.3 | across the United States because we're moving into the busy season and we have some |
| 1:33.8 | Yardy matrix reports that have come out closed out here now for May and had some interesting |
| 1:41.6 | data and things we want to hit on and talk about and what it means |
... |
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