Self-Storage in 2022: What to Expect
Self-storage has had a major boom over the past decade, but after years of heavy development, industry revenues were starting to slow as vacancy rates crept up across the country. However, it appears self-storage demand is making a big comeback in today's post-pandemic world.
According to Nareit data, self-storage real estate investment trusts (REITs) have achieved a 58.89% return year to date in 2021, the highest among all REIT sectors. It seems this recession-proof industry may be in store for a strong 2022. Here's what investors should expect from self-storage in the coming year.
The COVID-19 pandemic-related trend toward remote working prompted a number of families to relocate over the past year and a half, which in turn inadvertently created new demand for self-storage space in many major markets across the U.S. The national average for 10 x 10' climate-controlled unit rental rates increased 9.8% year over year in October 2021, with some markets in the U.S. Sun Belt seeing year-over-year rental rate increases closer to 15%.
Source Fool.com
