Yardi Matrix projects self-storage new supply to keep shrinking through 2028
Why this matters: our read
A shrinking pipeline is a supply signal, not a demand one: it says less new competition is coming, which is a different question from whether existing facilities are filling up. Watch occupancy data separately to see whether the two are moving together.
Yardi Matrix’s second-quarter 2026 supply forecast, reported by CRE Daily, projects new US self-storage deliveries of 52.88 million square feet in 2026, falling to 45.04 million in 2027 and 38.62 million in 2028. By 2028, new supply is projected to fall to about 1.7% of existing stock.
CRE Daily reported that the new figures are actually 2.3% to 3.5% higher than Yardi Matrix’s prior-quarter forecast, an increase it attributed mainly to Yardi Matrix expanding its market coverage rather than to any pickup in development. Even with that revision, the multi-year trajectory is unchanged: annual new supply is still projected to shrink every year through 2028 before ticking up again from 2029 to 2031.
Construction starts totaled 5.12 million square feet in the first quarter of 2026, about 29% below the same period a year earlier. The under-construction pipeline stood at 50.26 million square feet at the end of the quarter, down 14.5% year over year, while projects developers deferred rose 49% year over year to 7.18 million square feet. CRE Daily reported 53 projects were abandoned in March 2026, a figure it said was well above averages from the prior development cycle.
Yardi Matrix published its research bulletin on May 13, 2026; CRE Daily’s report on it followed on May 21, 2026.
Sources
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- Yardi Matrix
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- Matrix Self Storage Supply Forecast Update - Q2 2026
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- Published by
- CRE Daily
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- Secondary source
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- Self-Storage Pipeline Contracts as New Supply Slows
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