The REITs earnings calls reported that the majority of their development projects will be paused. In the next couple of years, this slowdown in supply growth will mean less competition coming online in primary markets.
While there are many obstacles in place for development, such as high interest rates, low asking rates, and difficulty to secure funds, existing facilities or facilities that are able to be built will have a huge advantage over the next few years.
Once rates come down a bit and home sales volume picks back up we can expect an increase in self storage demand. This influx in demand combined with the expected decrease in competition will put current operators in a great spot.