On February 1st 2023 the Federal government raised rates by another 25 basis points with the distinct possibility of even more raises to come.
Q3 of 2022 saw a decrease in occupancy across the board compared to the occupancy numbers of 2021. While we wait for the Q4 earnings to be released from the public REITs it will be interesting to see if the anticipated rate hikes will drive occupancy rates lower or if the self-storage industry has adapted yet to the current macroeconomic conditions.
In the time frame following the 2008 economic crisis, national occupancy levels saw unprecedented lows with it hitting 82.8% in Q1 2009 a decrease of 1.4% YoY. As time went on, the industry began to rebound with higher occupancy rates.
Will this current recession bring on an even bigger drop of average occupancy rates than the 2008 economic crisis?