Self-Storage Construction Continues Slowing, but Pipeline is Fuller Than Expected

Third-quarter 2025 Yardi Matrix development pipeline data continue to indicate a deceleration in new self-storage development. However, with a larger-than-expected inventory in the under-construction pipeline at quarter’s end, the Q4 update to the supply forecast increases projected completions by 4.3% for 2025 and 4.6% for 2026. Forecasts for 2027 through 2030 are unchanged.

Through the end of September 2025, the Matrix research team had identified 31.54 million net rentable square feet in new construction starts, 7.8% below the level recorded over the same period in 2024. For all markets tracked by Matrix, 2024 construction starts totaled 52.21 million NRSF, declining 19.6% from 2023’s 64.96 million NRSF.

“Since the great financial crisis, the self-storage industry has experienced significant growth, and it is now a mature asset class,” reported Yardi Matrix. In the absence of new demand drivers, national self-storage supply growth exceeding 2.0% of stock likely exceeds long-term demand growth and leads to localized flat or negative rate growth.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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