New self-storage demand is expected to outpace supply. For the last several years, strong self-storage demand has spurred self-storage construction. The construction levels have caused some concern that the supply would outpace demand; however, new demand trends show that demand is growing faster than supply can keep up.

"Forbes expects the demand for self-storage to continue to increase, but new supply could outpace it thanks to the flurry of new construction. Industry analysts predict this will cause a decline in the high returns enjoyed by some of the biggest industry players, which could in turn lead to lower rental prices as operators compete for new business," Dave Hettinger, senior national account manager at Motili, tells GlobeSt.com.

In some markets, the supply-demand imbalance is ensured by limits on new development. "Municipalities around the United States are placing a cap on self-storage growth. For example, New York enacted a zoning freeze in 2019, so it takes two years to obtain permission to build new facilities," says Hettinger. "The increase in restrictions might result in increased rental prices if demand continues to increase and the additional supply is hindered. City officials cited lack of space and displacement of businesses that would use the space to create more jobs."