Self-storage construction projects, which saw a boom during the months of the Covid 19 pandemic, are expected to see yet more growth for the rest of this year and heading into 2027.
So says a new report just issued by the research firm Yardi Matrix noting that currently there are more than 51.1 million self-storage projects in the building phase, accounting for an overall 6% increase over last year at this same time.
Construction starts in the industry have been generally trailing downward in recent years. However, says the Self-Storage Supply Forecast Update, “the rebound in self-storage construction starts exhibited in the latter half of 2025, as well as the improved advertised rental rate outlook, suggest new supply will bottom at a higher level than previously anticipated.”
The pandemic months really represented a historical epoch in the business with annual unit construction jumping from just under 40 million in late 2020 to more than 60 million by early 2023. A clear decline was recorded beginning in early 2024, with the annual numbers dropping to just over 50 million by the spring of last year.
First quarter construction is expected to drop to just over 44 million in 2027, with a more significant drop to 37.5 million in early 2028.
“The near-term forecast assumes steady but unspectacular economic growth in 2026 that supports moderate self-storage demand growth,” continues the report.
However, the report adds that continued elevated home mortgage rates have the effect of suppressing single-family home sales, “a key self-storage demand driver.”
The analysis, written by Yardi Matrix senior research analyst Ben Bruckner, also notes that the number of abandoned storage projects noticeably declined in the final quarter of 2025. Some 23 projects were classified as “abandoned in December, well below the trailing three-month average of 36 projects.”
February 176, 2026
By Garry Boulard
Photo courtesy of Pixabay
