Long-term rebound in demand seen unlikely as new-construction decline continues
SANTA BARBARA, Calif., May 20, 2026 – The modest increase in new self storage development activity at the end of 2025 led Yardi® Matrix to increase its new supply forecast for 2026.
Current construction completion times suggest that most of the 54 million net rentable square feet, or NRSF, of inventory at the end of last year will complete in 2026. The supply forecast estimates that new supply in 2027 will total about 45 million NRSF, with 38.62 NRSF coming in 2028.
With Q1 2026 construction starts 29% below the pace recorded a year ago, “2025’s decline in new construction is continuing into 2026,” showing “few signs that a near-term rebound in self storage demand will take hold” this year, according to a new Self Storage Supply Forecast Update from Yardi Matrix.
Advertised rental rates remain under pressure and long-term interest and mortgage rates remain elevated. This suppresses transactions, new development and single family home sales, a key self storage demand driver.
The revised estimate also accounts for the 30 new markets that Yardi Matrix has added to its coverage since July 2025.
Read about the factors driving the U.S. self storage market through 2031 in the Yardi Matrix Self Storage Supply Forecast Update for Q2 2026.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.
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