Self-storage has been one of the hottest asset classes in real estate for years, but now we may be hitting a turning point.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

A new report from the Wall Street Journal shows that America's self-storage boom is starting to face a pushback.

More than 12% of U.S. households are now renting storage units.

That's the highest level ever recorded.

And developers are still adding supply to keep up.

About 164 million square feet of new storage space is currently in development.

But here's where things shift for investors. Local governments are starting to push back.

Cities across at least 15 states have introduced bans or restrictions on new storage facilities.

This has many people asking why. It's because these properties

often generate low economic activity. They don't create many jobs, and they can take up valuable

land that cities would rather use for housing or retail. In some markets, self-storage is now

being treated like undesirable land use, grouped alongside

industries that don't contribute to economic growth. Cities like Providence, Rhode Island, have

enacted outright moratoriums. Others are using zoning laws to push storage facilities out of

high-visibility commercial corridors and into industrial zones.

And in Denver, development is restricted near transit corridors, where officials want housing instead.

For investors, this creates a mixed picture.

On the one hand, limited new supply in certain markets could support rents.

On the other, zoning restrictions can make new development

harder or impossible. There's also a shift happening inside the business itself. Many facilities

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