The self-storage development pipeline has contracted from a 4%+ peak in 2023 to 2.7% of existing inventory as of Q3 2025, projected to fall further to 2.0% by 2027.
Well-capitalized sponsors who move now are positioned to deliver into a supply-constrained market between 2027 and 2031. Street rates have stabilized after declining 8-12% from their 2021-2022 peak, national occupancy sits at 91.8%, and secondary markets in Texas and the Carolinas remain balanced or undersupplied. The reset is largely behind us. The entry point is now.
Self-storage has proven its resilience across every major economic downturn: occupancy held above 85% in 2008-09, demand actually increased during the 2001 recession, and the sector hit 95%+ occupancy during the 2020 pandemic.