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The self storage development pipeline continues to exhibit signs of a slowdown. Construction starts declined in Q4 2023, while growth in both planned and prospective development moderated. The number of deferred and abandoned self storage projects has been increasing. These circumstances are consistent with the previous quarter’s forecast expectations.
Heavy supply continues to weigh down asking rents in pandemic boomtowns. But many midsize markets in the Midwest, Northeast and South are still experiencing strong growth.
The year-end decline in multifamily construction starts persisted in Q1 2024. However, elevated completion times drove a slight expansion in the number of units under construction at the end of the first quarter. The sizeable under-construction pipeline will deliver a high level of completions in 2024 and 2025, with new supply bottoming in 2026.
Student Housing National Outlook
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