Over the last few years the average price per month to rent a storage unit in Texas has surged. According to SpareFoot reservation data, the average price of a self-storage unit in Texas increased from $67.93 a month in 2011 to $84.50 a month in 2016. That’s a jump of 25 percent.
Why is that? Following the Great Recession of 2008, builders of self-storage facilities backed off and stopped building new facilities.
That includes the big four public self-storage companies (Public Storage, Extra Space, CubeSmart and Life Storage), which account for around 10 percent of all self-storage supply.
As the populations of Houston, Dallas, Austin and San Antonio continued to grow during that period the existing supply of self-storage space reached peak occupancy in many portfolios. Operators were able to increase prices to capitalize on the constrained supply conditions.
But now the builders are developing again and 2016 is poised to be a record year for self-storage construction nationwide. Many facilities are currently under construction across the major Texas cities, and many are expected to open next year.
Average storage prices have been mostly flat since 2014, and the trend appears to continue into 2017. As more storage units come to market, we expect prices to plateau for the foreseeable future.
To learn more about trends in the Texas Self-Storage industry, take a look at more information on the SpareFoot web page covering this topic.