Development pipeline and completion data suggests a 19% decline in 2026 from ’25 level
SANTA BARBARA, Calif., Aug. 26, 2026 – New U.S. self storage supply will decline by almost 19% in 2026 compared to 2025, according to year-to-date completions and construction start data reported in a new Yardi® Matrix forecast.
The 22.27 million net rentable square feet of new supply through Q2 2026 represents a 27.7% decline from deliveries in the same period last year and approximated the estimate presented in last quarter’s forecast.
Construction starts are also trending lower, standing 19.6% below the midyear 2025 figure, suggesting that new supply in 2027 is likely to trail 2026’s deliveries. And, despite a seasonal pickup in advertised rental rates during the spring and summer leasing season, year-over-year rate growth remains negative in most markets tracked by Yardi Matrix.
Inflation pressures produced by tariffs, military conflict in Iran and other factors keep short- and long-term interest rates elevated, making new development less attractive. High long-term interest rates also suppress single-family home sales, a key driver of self storage demand.
As a result of these developments, “there are few signs that a meaningful rebound in self storage new development activity will take hold in the second half of 2026,” with the Q3 forecast projecting new supply will “fall to 52.93 million NRSF for full year 2026, followed by a further decline in 2027 to 45.25 million NRSF,” the Yardi Matrix forecast states.
Get more insight into self storage supply and rent trends in the Yardi Matrix Self Storage Supply Forecast Update for Q3 2026, which draws from 2,436 self storage properties in various stages of development. Yardi Matrix also maintains operational profiles for 33,221 completed U.S. self storage facilities.
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, single-family rentals in built-to-rent communities, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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