Despite COVID-19 and a looming recession developers have continued to add more supply of self storage. At the end of August-, nationally there were a total of 430 projects under construction, with another 2,676 facilities that were in various stages of planning & permitting. Dallas and The NYC Metro area represent the two regions within the top 25 that currently have the most total activity.
This can be credited to the fact that demand has been able to keep up with the supply being added. COVID-19 caused great amounts of people to be displaced, leave urban areas and opt for more space further away from cities increasing demand for self storage. The harsh economic conditions in the United States right now are also drivers for self storage demand, as many Americans continue to downsize and relocate. People are forced to move back home with their parents to save money, leading them to get a storage unit to store their items until they are ready to find their own place.
The uncertainty brought on by a possible recession, may cause people to hold off on buying a home for more space and instead opt for a storage unit. These macro factors have kept developers bullish and active in creating more facilities.
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