Chicago has long been an economic center in the Midwest, and is an established hub for many industries. According to a study from John Burns Research & Consulting based on the US Census data the state of Illinois has seen a net international and Domestic migration into the state of -110K YoY from July 2021- July 2022 (not including deaths and births). The Radius+ team took a look to see how this has affected the Self Storage market in the Chicago metropolitan area.
In 2020 the total supply of the Chicago-Naperville-Elgin, IL-IN-WI CBSA increased by 3%
In 2021 it increased by 1% But in 2022 total supply increased by 1.4% and so far into 2023 the total supply has increased by 1.8% in a bit over half the year. The slowdown in development in 2021 and 2022 seemed to be slowly reversing so far in 2023.
While the average price per square foot for self storage in Chicago for the first half of 2022 was $1.57 which dropped by 18% to $1.29 in Q1 2023. However, given that in the first half of 2019 the average price per square foot was $1.12 meaning it increased by 15% into 2023.
While development has visibly not reached the highs of 2020, if rates increase enough in 2023 there may be incentives for developers to add supply to the market.
