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Four months into 2022 with the Public REITS announcing Q1 earnings, we can clearly see that the increase in rates we saw in 2021 has dramatically slowed down.
The average price per square foot in January 2022 was $1.66, a 20.3% increase from $1.38 seen in January 2021. This was a strong indication that the sharp rise in rates we saw in 2021 would bleed into 2022.
February 2022 had over a 15.8% increase in price per square foot with rates being $1.67 while in February 2021 price per square foot was $1.44. While still an increase year over year, we could see that the increase was starting to slow down.
March 2022 showed that the year over year increase in price per square foot was only 7.6% higher in 2022 than in 2021 for the month of March. With March 2021 having a price per square foot of $1.55 and March 2022 having $1.67.
Overall Q1 2021 had an average price per square foot of $1.46 while Q1 2022 had an average price per square foot of $1.67 with there being a 14.4% increase from 2021 to 2022.
We can see that the rise in rates has slowly been declining month by month, and rates seem to be falling into traditional patterns. However, I am still curious if we will see rates make a strong comeback in the summer months when rates are typically at year long highs.