08 Nov 2022

Unsuspecting Markets In The Top 100 Leading The Way For Supply Growth In 2022

James McLean

Union Realtime

In 2022 YTD the top three regions from the top 100 markets with the highest percentage of supply growth were the North Port-Sarasota-Bradenton, FL, the Buffalo-Cheektowaga-Niagara Falls, NY market and the Lakeland-Winter Haven, FL area.

In 2022 the North Port-Sarasota-Bradenton, FL area had its total square footage increase by 7.4%. The projects that are in the planning, permitted and construction phase in this area are expected to increase the total square footage of supply by another 27.9% when they all complete.

Self Storage supply in Buffalo-Cheektowaga-Niagara Falls, NY has increased by 5.8% in 2022 YTD. With another 15.6% total supply being added after all its development projects were to complete.

The Lakeland-Winter Haven, FL market has seen 4.8% total supply growth in 2022 YTD. The current development pipeline of this market is expected to increase the total supply by 12.17% once they all complete.

The North Port-Sarasota-Bradenton, FL and Lakeland-Winter Haven, FL markets have become a popular location for recent retirees seeking agreeable weather conditions and cheaper cost of living. Its growing suburban population has driven self storage demand leading to high supply growth as developers try to keep up with the demand in the area.

Buffalo-Cheektowaga-Niagara Falls, NY currently has a Sq. Ft./Capita of 4. There is a lot of potential for this market, as it is relatively undersaturated compared to the national Sq. Ft./Capita. of 6.3.

What is worth noting about the Top 10 markets for supply growth in 2022 within the top 100 Markets is that only 3 of them were from the top 50 markets with highest square footage of self storage: the Phoenix-Mesa-Scottsdale, AZ market, New York-Newark-Jersey City, NY-NJ-PA, and Boise City, ID. It seems like smaller markets have been experiencing relatively more development compared to more saturated markets.

The bottom 10 markets for square footage growth in 2022 YTD from the top 100 markets were Palm Bay-Melbourne-Titusville, FL, Stockton-Lodi, CA, Greensboro-High Point, NC, Provo-Orem, UT, Columbia, SC, Corpus Christi, TX, Dayton, OH, Baton Rouge, LA, Springfield, MO, and Wichita, KS all of which had no new supply added in 2022 so far.

With development slowing down nationally for self storage it is important to highlight that the New York-Newark-Jersey City, NY-NJ-PA has added the most square footage of supply in 2022 YTD. This market has added an additional 4.3% of supply, while already being in the top 3 markets with the most square footage of self storage. The high density of population in the NYC metro area coupled with the high percentage of renter occupied homes and high median household income, has kept developers bullish on self storage in that market, despite an overall national slowdown in development.